Cracker Barrel Old Country Store, Inc. (Nasdaq: CBRL) has expanded its portfolio by acquiring Maple Street Biscuit Company for $36 million in cash. The announcement, made on October 11, 2019, signifies Cracker Barrel’s strategic move to strengthen its presence in the fast-growing fast casual dining segment, particularly within the breakfast and lunch markets.
Maple Street Biscuit Company, founded in Jacksonville, FL, in 2012 by Scott Moore and Gus Evans, operates 28 company-owned and five franchised locations across seven states. The brand is known for its focus on comfort food with a modern twist, emphasizing made-from-scratch dishes and gracious hospitality. Maple Street has demonstrated strong financial performance, targeting Average Unit Volumes (AUVs) exceeding $1 million and store-level EBITDA margins of 17% or greater.
Sandy Cochran, President and CEO of Cracker Barrel, highlighted the strategic rationale behind the acquisition. “The breakfast and lunch-focused fast casual category is an attractive segment, and our experience with Holler & Dash has reinforced this belief,” she stated. Cochran expressed admiration for Maple Street Biscuit Company, citing its “emphasis on made-from-scratch food and hospitality” and its “proven brand with attractive unit economics and strong growth potential.” She believes the acquisition will accelerate Cracker Barrel’s penetration into the fast casual sector and drive shareholder value.
Cracker Barrel plans to convert its existing Holler & Dash Biscuit House locations into Maple Street Biscuit Company restaurants. This conversion indicates a strategic shift towards the Maple Street Biscuit Company brand within Cracker Barrel’s fast casual strategy. Scott Moore will continue to lead Maple Street Biscuit Company as CEO, reporting directly to Sandra B. Cochran, ensuring continuity and leveraging his expertise in guiding the brand’s growth within the Cracker Barrel framework.
Scott Moore, founder and CEO of Maple Street Biscuit Company, also commented on the acquisition, emphasizing the shared values between the two brands. “From the beginning, Maple Street Biscuit Company has focused on serving its communities through comfort food with a modern twist and gracious service,” Moore said. He noted the similarities in “scratch cooking and an emphasis on hospitality” between Maple Street and Cracker Barrel. Moore expressed enthusiasm for the partnership, believing that Cracker Barrel’s resources and experience will be instrumental in growing the Maple Street Biscuit Company brand and furthering its mission of community engagement and service.
Financially, Cracker Barrel anticipates the acquisition to have a neutral impact on its earnings per diluted share in fiscal year 2020, excluding any acquisition and integration expenses. This suggests a focus on long-term strategic benefits rather than immediate earnings gains.
Cracker Barrel Old Country Store, established in 1969, operates 660 company-owned Cracker Barrel Old Country Store locations across 45 states. With the acquisition of Maple Street Biscuit Company and ownership of Holler and Dash restaurants, Cracker Barrel is strategically diversifying its portfolio to capture a broader range of dining preferences and market segments. The acquisition of Maple Street Biscuit Company underscores Cracker Barrel’s commitment to growth and its strategic vision for the fast casual dining landscape.
