Key Takeaways:
- Cracker Barrel raised its fiscal 2026 revenue outlook to at least $3.3 billion.
- The company completed a $77 million sale-leaseback on 26 store locations.
- Maple Street Biscuit was divested, with 35 locations sold and 16 closed.
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Cracker Barrel raises guidance to $3.3B after divesting Maple Street Biscuit
Cracker Barrel raised its fiscal 2026 revenue guidance to at least $3.3 billion after completing a sale-leaseback and divesting its Maple Street Biscuit chain.
"These efforts reflect the discipline we bring to managing our business and balance sheet as we position Cracker Barrel for long-term success," Julie Masino, President and Chief Executive Officer, said.
The sale-leaseback with an institutional investor generated $77 million in net proceeds, which the company plans to use for debt reduction. Cracker Barrel sold the Maple Street Biscuit trademark and assets used in 35 locations to Biscuit Belly LLC and will close the remaining 16 stores. The divestiture will result in non-cash charges of $37 million to $39 million in the fourth quarter, with additional cash charges of $6 million to $8 million spread across fiscal 2026 and 2027. Maple Street Biscuit contributed less than 2% of Cracker Barrel's annual revenue.
The company now expects to achieve or exceed the high end of its revenue range and exceed its adjusted EBITDA outlook for fiscal 2026, which ends July 31. It previously forecast total revenue of $3.27 billion to $3.3 billion and adjusted EBITDA of $120 million to $125 million. Through the first 11 weeks of the fourth quarter, comparable store restaurant sales fell 2.5% while comparable store retail sales rose 0.5%.
Shares of Cracker Barrel have surged 115% year to date to $53.40, giving the company a market capitalization of $1.19 billion. The stock trades at a price-to-earnings ratio of 45.63. The company operates about 660 locations in 43 states and has maintained dividend payments for 45 consecutive years, currently yielding 1.87%.
The restructuring sharpens Cracker Barrel's focus on its core brand while reducing leverage through debt repayment. The divestiture is expected to be accretive to adjusted EBITDA starting in fiscal 2027, with full-year results due in August. Rival casual-dining chains including Darden Restaurants and Texas Roadhouse have also focused on operational efficiency as the sector contends with shifting consumer spending patterns.
This article is for informational purposes only and does not constitute investment advice.
[1] Cracker Barrel Raises Guidance After Maple Street Biscuit Divestiture, Sale-Leaseback Deal[2] Cracker Barrel raises guidance after Maple Street Biscuit divestiture, sale-leaseback deal[3] Cracker Barrel completes sale-leaseback, divests Maple Street - Investing.com[4] CRACKER BARREL ANNOUNCES STRATEGIC ACTIONS - TradingView
