CBRL · Cracker Barrel Old Country Store, Inc.

Cracker Barrel announced two strategic actions on July 20, 2026. The sale-leaseback of 26 company-owned Cracker Barrel stores to an institutional real estate investor generated net proceeds of approximately $77 million, which will be used to reduce outstanding revolver debt. This transaction is tax efficient, utilizing capital loss carryforwards that would have otherwise expired. The properties are leased back under absolute triple net leases with a maximum term of 40 years, initial annual payments of about $5.7 million subject to fixed increases, keeping the Company responsible for taxes, insurance, and maintenance. Separately, Cracker Barrel divested its Maple Street Biscuit Company (MSBC) business, selling trademarks and assets of 35 locations to Biscuit Belly, LLC and closing the remaining 16 stores. The Company expects non-cash charges of $37–$39 million in Q4 fiscal 2026, consisting of a $10–$11 million impairment and a $27–$28 million loss on sale, plus additional cash exit costs of $6–$8 million spread between Q4 2026 and fiscal 2027. MSBC contributed less than 2% of annual revenue, and the divestiture is expected to be accretive to adjusted EBITDA starting in fiscal 2027. Alongside these actions, the Company provided a business update: through the first 11 weeks of its fiscal fourth quarter, comparable store restaurant sales declined 2.5% while retail sales rose 0.5%. Management raised its full-year fiscal 2026 outlook, now anticipating revenue at or above the prior high end of $3.30 billion and adjusted EBITDA above the prior high end of $125 million. The prior guidance ranges (revenue $3.27–$3.30 billion; adjusted EBITDA $120–$125 million) were provided on June 9, 2026. CEO Julie Masino highlighted the discipline in managing the business and balance sheet, positioning Cracker Barrel for long-term success. The reduced leverage and improved profitability outlook reflect progress on strategic priorities.