Cracker Barrel Stock Jumps 9% on $77M Real Estate Deal, Maple Street Divestiture

Shares of Cracker Barrel Old Country Store (NASDAQ:CBRL) surged 9% in after-hours trading on Monday after the company announced two significant strategic moves designed to strengthen its balance sheet and streamline operations.

Strategic Transactions Unveiled

The Lebanon, Tennessee-based company disclosed it has completed a sale-leaseback transaction for 26 of its restaurant locations with an institutional real estate investor. The deal generated net proceeds of approximately $77 million, which Cracker Barrel stated will be used to reduce corporate debt.

In a separate move, Cracker Barrel finalized the sale of its Maple Street Biscuit Company business to Biscuit Belly, LLC. The divestiture includes the brand's trademark and the assets from 35 locations. The company confirmed it will close the remaining 16 Maple Street locations.

Financial Impact and Updated Guidance

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Cracker Barrel expects to recognize non-cash charges of $37 million to $39 million in the fourth quarter of fiscal 2026 related to the divestiture. The company also anticipates additional cash charges of $6 million to $8 million for exiting the business, spread across fiscal 2026 and 2027.

Despite these charges, the company noted that Maple Street contributed less than 2% of its total annual revenue. The divestiture is expected to be accretive to adjusted EBITDA beginning in fiscal 2027, signaling a positive impact on future profitability. Bolstered by these strategic changes, Cracker Barrel raised its outlook for fiscal 2026, now expecting to meet or exceed the high end of its revenue range of $3.30 billion and to surpass its adjusted EBITDA guidance of $120 million to $125 million.

Recent Performance

The announcements come as the company provided a performance update for the first eleven weeks of its fiscal fourth quarter. During this period, comparable store restaurant sales saw a decrease of approximately 2.5%, while comparable store retail sales increased by about 0.5% compared to the prior year. The market's positive reaction suggests investors view the real estate and divestiture deals as decisive steps to improve financial health and focus on the core Cracker Barrel brand.