Cracker Barrel has completed a $77 million sale-leaseback transaction for 26 company-owned stores and divested its Maple Street Biscuit Company brand to reduce debt and sharpen its focus on its core restaurant business. The moves are part of a broader restructuring effort as the family-dining chain recovers from a severe brand crisis that triggered traffic declines exceeding 10% in 2024 and 2025.
The sale-leaseback deal, completed with an institutional real estate investor, generated approximately $77 million in net proceeds that Cracker Barrel intends to deploy toward debt reduction, according to the company’s July 20 announcement. The transaction is structured to be tax-efficient, allowing the company to utilize capital loss carryforwards that otherwise would have expired.
Simultaneously, Cracker Barrel sold the Maple Street Biscuit Company brand and assets for 35 locations to Biscuit Belly LLC, a Louisville-based breakfast chain. The remaining 16 Maple Street locations will be closed. Biscuit Belly plans to convert the acquired Maple Street restaurants to the Biscuit Belly brand over 18 to 24 months, more than tripling its footprint in the process.
Maple Street Biscuit Company, which Cracker Barrel acquired in 2019, had become a drag on profitability. The brand contributed less than 2% of Cracker Barrel’s annual revenue, and the divestiture is expected to be accretive to adjusted EBITDA beginning in fiscal 2027, according to the company. Cracker Barrel expects to recognize non-cash charges of approximately $37 million to $39 million in the fourth quarter of fiscal 2026 related to the divestiture, plus additional cash charges of $6 million to $8 million.
Recovery from Rebranding Crisis
The restructuring actions follow a tumultuous period for Cracker Barrel. In August 2024, the company attempted a major rebranding effort that stripped away its signature rustic aesthetic and logo. The move triggered immediate backlash from customers and conservative groups, and the company lost $262 million in market value between August and October 2024. By October 2024, Cracker Barrel abandoned the rebrand entirely and returned to its original logo and décor.
The fallout from the failed rebrand contributed to severe traffic declines. In fiscal Q2 2026 (ended February 2026), comparable restaurant sales fell 7% as guest traffic dropped 10.1%, according to company filings. The company had projected traffic declines of 7% to 8% for the first quarter and 4% to 7% for the full fiscal year 2026.
By early summer 2026, traffic trends had improved markedly. Through the first eleven weeks of the fourth quarter of fiscal 2026, comparable store restaurant sales declined only approximately 2.5%, and comparable retail sales increased 0.5%, signaling a recovery ahead of schedule. The company now expects to achieve or exceed the high end of its fiscal 2026 revenue range of $3.27 billion to $3.30 billion and exceed its adjusted EBITDA guidance of $120 million to $125 million.
CEO Julie Masino framed the strategic moves as evidence of disciplined capital management. “Our sale-leaseback transaction will allow us to opportunistically reduce debt while monetizing a portion of our owned real estate at an attractive valuation,” she said in the announcement. “Divesting Maple Street sharpens our focus on the core Cracker Barrel brand and is expected to improve profitability.”
The $77 million raised through the sale-leaseback comes as Cracker Barrel works to strengthen its balance sheet. The company had previously announced a corporate restructuring program targeting $20 million to $25 million in annual cost savings. These moves, combined with improved comparable sales trends, position Cracker Barrel to move forward with less financial pressure as it rebuilds customer trust in its core brand.
Sources
- Cracker Barrel Investor Relations — official press release announcing the sale-leaseback transaction and Maple Street divestiture, July 20, 2026
- USA Today — reporting on Cracker Barrel’s sale of Maple Street Biscuit Company and closure of 16 locations, July 22, 2026
- Restaurant Dive — coverage of Cracker Barrel’s fiscal Q2 2026 traffic decline of 10.1%, March 5, 2026
- Biscuit Belly Official — announcement of acquisition of 35 Maple Street Biscuit Company locations and conversion timeline, July 20, 2026
- National Restaurant News — reporting on Biscuit Belly’s acquisition and brand conversion plans, July 20, 2026
- Wall Street Journal — coverage of Cracker Barrel’s guidance raise following the sale-leaseback and divestiture, July 20, 2026
