Cracker Barrel Exits 51-Unit Maple Street, Raises $77 Million in Sale-Leaseback

Q: Did Cracker Barrel's $36M bet on Maple Street end in a net financial loss after this final sale?

Yes—by every disclosed indicator, Cracker Barrel’s Maple Street investment ended in a financial loss, even though the exact sale price to Biscuit Belly was not made public. Cracker Barrel paid $36 million for Maple Street in 2019. In exiting the business, it said it expects roughly $37 million to $39 million in non-cash charges and another $6 million to $8 million in cash exit costs tied to the sale and the closure of 16 remaining locations. Those charges suggest the business’s carrying value had fallen sharply and that Cracker Barrel had to absorb meaningful additional costs to get out. Because the sale proceeds were undisclosed, it is not possible to calculate the precise net loss from acquisition to exit. But the scale of the write-downs and exit costs strongly indicates that Cracker Barrel did not recover its original investment. The non-cash charges alone are about as large as, or larger than, the original $36 million purchase price, and the added cash costs deepen the hit. The company has framed the divestiture as a strategic move to focus on its core Cracker Barrel brand and improve profitability. Maple Street contributed less than 2% of annual revenue, and Cracker Barrel said the exit should help adjusted EBITDA starting in fiscal 2027. That means the sale may improve future operations, but it still appears to mark a loss on the Maple Street bet itself.

3 articles · Updated · Fox Business · Jul 21

$77 million in net proceeds came from Cracker Barrel’s sale-leaseback of 26 company-owned restaurants, with the chain planning to use the cash to pay down debt while continuing to operate those sites as a tenant.
The balance-sheet move came alongside Cracker Barrel’s exit from Maple Street Biscuit Company: Biscuit Belly bought the brand and assets tied to 35 locations, while the remaining 16 Maple Street restaurants will close.
Maple Street contributed less than 2% of annual revenue, and Cracker Barrel said the divestiture should lift adjusted EBITDA starting in fiscal 2027 by sharpening focus on its core brand.
The exit will still trigger near-term costs, with Cracker Barrel expecting $37 million to $39 million in non-cash charges and another $6 million to $8 million in cash costs in its fiscal fourth quarter.
For Biscuit Belly, the acquisition more than triples its 15-store footprint; it plans to convert the sites over 18 to 24 months and grow past 60 locations by the end of 2028.