CRACKER BARREL ANNOUNCES STRATEGIC ACTIONS

About this update from Cracker Barrel Old Country Store, Inc.

Completes Sale-Leaseback Transaction for 26 Cracker Barrel Stores and Divests Maple Street Biscuit CompanyCompany Raises Profitability Outlook for Fiscal 2026 LEBANON, Tenn., July 20, 2026 /PRNewswire/ -- Cracker Barrel Old Country Store, Inc. ("Cracker Barrel" or the "Company") (Nasdaq: CBRL) today announced two strategic actions.Sale-Leaseback TransactionCracker Barrel completed a sale-leaseback transaction with an institutional real estate investor for 26 Company-owned Cracker Barrel store locations, generating net proceeds of approximately $77 million. The Company intends to deploy the proceeds towards debt reduction. The transaction is tax efficient and enables the Company to utilize capital loss carryforwards that otherwise would have expired.Maple Street Biscuit Company DivestitureCracker Barrel also completed the sale of certain assets used in its Maple Street Biscuit Company ("MSBC") business, including the MSBC trademark and the assets used in 35 MSBC locations to Biscuit Belly, LLC. Simultaneously with the completion of this sale, the Company announced that the remaining 16 MSBC locations will be closed.In connection with the divestiture, the Company expects to recognize non-cash charges1 of approximately $37 million to $39 million during the fourth quarter of fiscal 2026. The Company anticipates additional cash charges1 of approximately $6 million to $8 million associated with exiting the business, some of which are expected to be incurred in the fourth quarter of fiscal 2026 and some in fiscal 2027. MSBC contributed less than 2% of Cracker Barrel's annual revenue, and this divestiture is expected to be accretive to adjusted EBITDA2 beginning in fiscal 2027."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 Julie Masino, President and Chief Executive Officer. "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. Combined with our improved fiscal 2026 outlook and reduced leverage, these actions demonstrate the progress we are making against our strategic priorities."Fiscal 2026 Ou...

View stock analysis, news, and events for Cracker Barrel Old Country Store, Inc.