Lebanon, Tennessee — Cracker Barrel is making major changes to its business strategy after announcing it will exit the Maple Street Biscuit Company brand, close its remaining company-operated locations and sell dozens of restaurant properties as part of a broader effort to reduce debt and improve financial performance.
The company revealed the restructuring plan Monday, saying the moves are intended to strengthen its balance sheet while allowing management to focus entirely on the iconic Cracker Barrel restaurant brand.
Cracker Barrel Exits Maple Street Biscuit Company
As part of the restructuring, Cracker Barrel has sold the Maple Street Biscuit Company brand and assets tied to 35 restaurant locations to Biscuit Belly LLC.
The company also confirmed it will permanently close its remaining 16 Maple Street restaurants, bringing an end to its ownership of the breakfast-focused chain.
Company officials said exiting the business allows Cracker Barrel to concentrate on its primary restaurant operations while improving future profitability.
President and CEO Julie Masino described the move as an important step toward the company’s long-term strategy.
“These efforts reflect the discipline we bring to managing our business and balance sheet as we position Cracker Barrel for long-term success and shareholder value creation,” Masino said.
She added:
“Divesting Maple Street sharpens our focus on the core Cracker Barrel brand and is expected to improve profitability.”
$77 Million Property Deal Will Help Reduce Debt
In a separate financial move, Cracker Barrel completed a sale-leaseback transaction involving 26 company-owned restaurant properties, generating approximately $77 million in net proceeds.
Although ownership of the properties has changed hands, Cracker Barrel will continue operating those restaurants by leasing them from the new owner.
According to the company, the proceeds will primarily be used to pay down debt, giving the restaurant chain additional financial flexibility as it continues its turnaround efforts.
Biscuit Belly Plans Major Expansion
For Biscuit Belly LLC, the acquisition represents a significant opportunity for growth.
The breakfast chain currently operates 15 locations, but the purchase of Maple Street restaurants is expected to more than triple its footprint.
The company plans to convert the acquired Maple Street locations into Biscuit Belly restaurants over the next 18 to 24 months, beginning in the greater Cincinnati area and Richmond, Virginia.
Executives say the expansion could increase the chain’s presence to more than 60 locations by the end of 2028.
“When we looked at Maple Street’s geography, footprints, and established teams, a light bulb went off,” said Biscuit Belly co-founder and CEO Chad Coulter.
Company Continues Broader Turnaround Effort
Cracker Barrel noted that Maple Street contributed less than 2% of its annual revenue, making the decision to exit the business part of a broader effort to improve earnings.
The company expects to record between $37 million and $39 million in non-cash charges related to the Maple Street exit during its fiscal fourth quarter, along with an additional $6 million to $8 million in cash costs.
The restructuring follows a challenging period for Cracker Barrel, including customer backlash last year after proposed updates to the company’s logo and restaurant interiors. The company ultimately reversed several of those changes after widespread customer criticism.
With approximately 660 company-owned restaurants across 43 states, Cracker Barrel says its latest decisions are intended to strengthen the business while keeping its focus on the brand that customers know best.
What do you think about Cracker Barrel’s decision to close its remaining Maple Street restaurants and focus solely on its core brand? Share your thoughts respectfully in the comments below.
