Cracker Barrel sold the Maple Street Biscuit Company brand and assets tied to 35 locations to Biscuit Belly LLC on July 20, marking an exit from the fast-casual breakfast segment after acquiring the Jacksonville-based chain for $36 million in 2019.
The Kentucky-based Biscuit Belly will convert the Maple Street locations to its own brand over the next 18 to 24 months, with conversions beginning immediately in the greater Cincinnati area and Richmond, Virginia. Cracker Barrel will close the remaining 16 Maple Street restaurants.
Cracker Barrel acquired Maple Street in October 2019 when the concept had 28 company-owned and five franchised locations. Following that acquisition, Maple Street expanded to nearly 60 locations by 2023 before the company began slowing its development. Maple Street contributed less than 2% of Cracker Barrel’s annual revenue at the time of the sale.
The divestiture sharpens Cracker Barrel’s focus on its core brand and is expected to improve profitability beginning in fiscal 2027, according to Chief Executive Officer Julie Masino. “Divesting Maple Street sharpens our focus on the core Cracker Barrel brand and is expected to improve profitability,” Masino said in a statement.
Cracker Barrel expects to record between $37 million and $39 million in non-cash charges tied to the Maple Street exit during its fiscal fourth quarter, with an additional $6 million to $8 million in cash costs anticipated for severance, lease terminations, and other exit expenses. Despite these charges, the company raised its full-year revenue guidance as a result of the strategic actions.
In a separate move, Cracker Barrel completed a sale-leaseback transaction involving 26 company-owned locations, generating approximately $77 million in net proceeds that the company plans to apply toward debt reduction. The company said it expects to meet or exceed its full-year revenue guidance following these strategic moves.
For Biscuit Belly, which currently operates 15 locations, the acquisition represents a major expansion opportunity. “When we looked at Maple Street’s geography, footprints, and established teams, a light bulb went off,” said Chad Coulter, co-founder and CEO of Biscuit Belly. The deal is expected to help Biscuit Belly grow to more than 60 locations by the end of 2028.
Sources
- PR Newswire — Biscuit Belly acquisition announcement, conversion timeline, and CEO quotes
- Fox Business — Maple Street sale details, location counts, sale-leaseback transaction, and financial charges
- Wall Street Journal — Cracker Barrel financial guidance and divestiture details
- Nation’s Restaurant News — Historical acquisition price and expansion details
