For decades, Cracker Barrel has built its reputation on Southern comfort food, country-style décor, and a nostalgic dining experience that has kept travelers and families coming back since 1969.But the restaurant chain has spent the past year navigating one of the most challenging periods in its recent history. After drawing backlash over key business decisions and struggling with declining sales, the company has been taking aggressive steps to simplify its operations, strengthen its financial position, and refocus on its core business.Now, Cracker Barrel is taking one of its biggest steps yet in that turnaround effort by exiting an entire restaurant brand, a move that includes dozens of location transfers and multiple permanent closures.Cracker Barrel sells the Maple Street Biscuit CompanyCracker Barrel Old Country Store Inc. (CBRL) has sold the Maple Street Biscuit Company business, including the brand’s trademark, intellectual property, and 35 restaurants, to Biscuit Belly. Financial terms of the transaction were not disclosed. The remaining 16 Maple Street Biscuit Company locations will close permanently, marking Cracker Barrel’s complete exit from the fast-casual concept.”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,” said Cracker Barrel President and CEO Julie Masino in a statement.The company also completed a sale-leaseback transaction with an institutional real estate investor for 26 company-owned Cracker Barrel locations, generating approximately $77 million in net proceeds.”Our sale-leaseback transaction will allow us to opportunistically reduce debt while monetizing a portion of our owned real estate at an attractive valuation,” said Masino. “Divesting Maple Street sharpens our focus on the core Cracker Barrel brand and is expected to improve profitability.”What happens next to Maple Street Biscuit Company?Biscuit Belly said the acquired Maple Street Biscuit Company restaurants will gradually transition to the Biscuit Belly brand over the next two years, beginning in January 2027, according to an FAQ on its website.Once the conversion is completed, the acquisition will nearly triple Biscuit Belly’s footprint to about 60 restaurants, accelerating its goal of becoming the nation’s largest gourmet biscuit chain.”As we’ve grown, two of the biggest challenges we’ve faced are finding and building the right restaurant locations and finding great teams to operate them,” said Biscuit Belly in a statement.”When we looked at Maple Street’s geography, restaurant footprints and established store-level teams, we saw a unique opportunity to grow intentionally in communities that align with our long-term strategy.”Biscuit Belly said it plans to keep the acquired restaurants open while investing in their existing teams. The company added that the selected locations align with its long-term expansion strategy because of their geographic markets, experienced employees, and established customer bases.Founded in Louisville, Kentucky, in 2019, Biscuit Belly specializes in Southern-inspired breakfast and brunch dishes, including gourmet biscuit sandwiches.
Cracker Barrel sells Maple Street Biscuit Company.Greenberg/Universal Images Group via Getty Images
Why Cracker Barrel decided to sell Maple Street Biscuit CompanyThe sale comes as Cracker Barrel works to improve profitability after several quarters of declining sales and customer traffic.The company has faced mounting pressure since unveiling its $700 million transformation plan last year, a move that drew criticism from many longtime customers. In response, Cracker Barrel pledged to restore its original logo, pause store remodels, and launch new marketing, advertising, and social media initiatives designed to better reflect the brand’s heritage.Here’s some of my previous coverage of store closures:Burger chain closes most locations after partner’s collapsePizza chain closing up to 50 locations after years of declinesIconic burger chain closes 89-year-old restaurant for goodCracker Barrel’s financial performance has continued to reflect those challenges. During the third quarter of fiscal 2026, total revenue declined by nearly by 3% year over year, with lower sales across both its restaurants and retail businesses.Sales weakness continued into the fourth quarter. During the first 11 weeks of the quarter, comparable restaurant sales were down approximately 2.5% from a year earlier, while comparable retail sales increased about 0.5%.Although Maple Street Biscuit Company accounted for less than 2% of Cracker Barrel’s annual revenue, the company projects the divestiture to improve adjusted EBITDA beginning in fiscal 2027 by allowing management to focus on its flagship brand.As part of the transaction, Cracker Barrel expects to recognize non-cash charges of approximately $37 million to $39 million during the fourth quarter of fiscal 2026, along with an additional $6 million to $8 million in cash charges related to exiting the business. Some of those costs are expected to be recognized in fiscal 2026, with the remainder occurring in fiscal 2027.Despite those one-time charges, Cracker Barrel said it now forecasts meeting or exceeding the high end of its fiscal 2026 revenue guidance and surpassing its adjusted EBITDA outlook. The company previously projected revenue of $3.27 billion to $3.30 billion and adjusted EBITDA of $120 million to $125 million for the fiscal year ending July 31, 2026.Maple Street Biscuit Company closures preceded the saleFounded in 2012, Maple Street Biscuit Company is a fast-casual restaurant chain known for its Southern comfort food, particularly biscuits and fried chicken. While it shares Southern roots with Cracker Barrel, the concept offers a more contemporary design and dining experience.Cracker Barrel acquired Maple Street Biscuit Company for $36 million in 2019, when the chain operated 28 company-owned restaurants and five franchised locations across seven states.In recent months, however, the company began scaling back the business. During its fourth-quarter of fiscal 2025 earnings call, Cracker Barrel revealed plans to close 14 Maple Street Biscuit Company restaurants during fiscal year 2026 after slowing the brand’s expansion.The sale marks Cracker Barrel’s complete exit from the fast-casual concept as the company concentrates its resources on strengthening its flagship restaurant business and improving long-term profitability.Related: Popular beverage chain closing multiple locations nationwide