Cracker Barrel Old Country Store Inc has completed a sale-leaseback transaction for 26 Company-owned Cracker Barrel store locations, generating net proceeds of approximately $77 million. The company intends to use the proceeds for debt reduction. Simultaneously, Cracker Barrel sold certain assets related to its Maple Street Biscuit Company (MSBC) business, including the MSBC trademark and assets used in 35 MSBC locations, to Biscuit Belly, LLC. Following this sale, the company announced the closure of the remaining 16 MSBC locations.

As a result of the divestiture, the company expects to recognize non-cash charges of approximately $37 million to $39 million during the fourth quarter of fiscal 2026. Additionally, it anticipates cash charges of approximately $6 million to $8 million associated with exiting the business, with some costs incurred in the fourth quarter of fiscal 2026 and the remainder in fiscal 2027. The divestiture is expected to be accretive to adjusted EBITDA beginning in fiscal 2027.

Cracker Barrel reported comparable store restaurant sales decreased approximately 2.5% and comparable store retail sales increased approximately 0.5% over the first 11 weeks of its fiscal fourth quarter. Despite the sales decline, the company now expects to achieve or exceed the high end of its revenue range and surpass its adjusted EBITDA outlook for fiscal 2026, which ends July 31, 2026. Previously, on June 9, 2026, the company had anticipated total revenue of $3.27 billion to $3.30 billion and adjusted EBITDA of $120 million to $125 million.

"Our sale-leaseback transaction will allow us to opportunistically reduce debt while monetizing a portion of our owned real estate at an attractive valuation. Divesting Maple Street sharpens our focus on the core Cracker Barrel brand and is expected to improve profitability," said Julie Masino, president and CEO of Cracker Barrel.

Financial Outlook

Argus Research analyst Christine Dooley has maintained a Buy rating on Cracker Barrel Old and raised the price target to $60 from $40. The revised target reflects increased confidence in the company's stock performance potential.

Rating and Target Details

The analyst's decision to upgrade the price target comes as Cracker Barrel Old continues to trade on the NASDAQ under the ticker symbol CBRL. The new target of $60 represents a significant increase from the previous $40 level.