Cracker Barrel has sold its Maple Street Biscuit Company business and will permanently close 16 locations as part of a broader effort to simplify operations and focus on its flagship restaurant brand.
The Cracker Barrel Old Country Store Inc. (CBRL) decision ends the company’s ownership of the fast-casual breakfast concept it acquired in 2019. The sale transfers 35 restaurants, along with the brand’s trademark and intellectual property, to Biscuit Belly, while the remaining locations will shut down.
The move comes as Cracker Barrel works to improve financial performance after declining sales, customer traffic challenges, and pressure surrounding its recent transformation strategy.
Cracker Barrel Sells Maple Street Biscuit Company to Biscuit Belly
According to reporting from The Street, Cracker Barrel has completed the sale of Maple Street Biscuit Company to Biscuit Belly, a Louisville-based breakfast and brunch chain specializing in Southern-inspired dishes and gourmet biscuit sandwiches.
Financial terms of the agreement were not disclosed, but the transaction includes 35 Maple Street Biscuit Company restaurants, the brand name, trademarks, and related intellectual property. The remaining 16 restaurants will close permanently, ending Cracker Barrel’s involvement in the fast-casual segment.
Cracker Barrel President and CEO Julie Masino said the decision reflects a broader strategy focused on improving the company’s financial structure and directing resources toward its main restaurant business.
“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 separate sale-leaseback transaction involving 26 company-owned Cracker Barrel locations. The agreement generated about $77 million in net proceeds, giving the company additional flexibility to reduce debt and manage its real estate assets.
“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.”
The sale represents one of the largest portfolio changes made by Cracker Barrel during its current turnaround effort, as executives attempt to concentrate investments on the company’s traditional restaurant and retail operations.
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Maple street biscuit company restaurants will transition to biscuit belly
The new owner, Biscuit Belly, plans to gradually convert the acquired Maple Street Biscuit Company restaurants into Biscuit Belly locations over the next two years, with the transition beginning in January 2027.
Once the conversion process is complete, the acquisition is expected to nearly triple Biscuit Belly’s footprint to around 60 restaurants. The company said the deal supports its goal of becoming the largest gourmet biscuit chain in the United States.
Biscuit Belly said it intends to keep the acquired restaurants operating during the transition period while investing in existing teams and maintaining the experience built by Maple Street Biscuit Company employees.
“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.”
The acquisition gives Biscuit Belly access to established restaurant locations, experienced employees, and customer bases across markets that already fit its expansion plans.
Founded in Louisville, Kentucky, in 2019, Biscuit Belly has focused on a modern take on Southern breakfast cuisine, building its identity around premium biscuit-based menu items and brunch offerings.
Cracker barrel focuses on its core business after financial pressure
Cracker Barrel’s decision to sell Maple Street Biscuit Company follows several quarters of financial challenges that have pushed management to reconsider its growth strategy.
The company acquired Maple Street Biscuit Company in 2019 for $36 million, when the brand operated 28 company-owned restaurants and five franchised locations across seven states. The fast-casual concept was expected to provide growth beyond Cracker Barrel’s traditional roadside restaurant model.
The expansion did not deliver the expected results, and Cracker Barrel began reducing its investment in the brand. During its fiscal 2025 fourth-quarter earnings call, the company announced plans to close 14 Maple Street Biscuit Company restaurants during fiscal 2026 after slowing expansion efforts.
The latest sale completes Cracker Barrel’s exit from the concept as executives focus on strengthening the company’s original brand.
Cracker Barrel has also faced criticism from some longtime customers following changes introduced through its transformation plan. The company later announced plans to restore its original logo, pause store remodels, and introduce new marketing initiatives designed to reconnect with its heritage.
Financial results have continued to reflect those difficulties. During the third quarter of fiscal 2026, total revenue declined nearly 3% year over year, with weaker performance across both restaurant and retail operations.
Comparable restaurant sales also remained under pressure during the first 11 weeks of the fourth quarter, falling approximately 2.5% compared with the same period a year earlier. Comparable retail sales increased around 0.5% during that period.
Sale expected to improve profitability as cracker barrel reshapes operations
Although Maple Street Biscuit Company represented less than 2% of Cracker Barrel’s annual revenue, the company expects the divestiture to improve adjusted EBITDA beginning in fiscal 2027 by allowing leadership to dedicate more attention to its primary restaurant brand.
The transaction will create short-term costs for Cracker Barrel. The company expects non-cash charges of approximately $37 million to $39 million during the fourth quarter of fiscal 2026, along with additional cash charges estimated between $6 million and $8 million related to exiting the business.
Some expenses are expected during fiscal 2026, while the remaining costs will be recorded in fiscal 2027.
Despite these charges, Cracker Barrel said it expects to meet or exceed the upper end of its fiscal 2026 revenue guidance and surpass its adjusted EBITDA forecast. The company previously projected annual revenue between $3.27 billion and $3.30 billion, along with adjusted EBITDA between $120 million and $125 million, for the fiscal year ending July 31, 2026.
The Maple Street Biscuit Company sale marks another step in Cracker Barrel’s effort to return attention to its original identity. As Biscuit Belly expands through the acquired restaurants, Cracker Barrel will continue focusing on its longtime dining brand and efforts to restore financial momentum.
