Cracker Barrel Old Country Store has officially expanded its portfolio with the acquisition of Maple Street Biscuit Company for $36 million in cash. This strategic move, announced on October 11, 2019, marks Cracker Barrel’s significant entry into the fast-casual breakfast and lunch market, leveraging Maple Street’s established brand and operational model. Founded in Jacksonville, FL in 2012 by Scott Moore and Gus Evans, Maple Street Biscuit Company boasts 28 company-owned and 5 franchised locations across seven states, making it a valuable addition to Cracker Barrel’s expanding culinary landscape.
Maple Street Biscuit Company has demonstrated impressive financial targets, aiming for Average Unit Volumes (AUVs) exceeding $1 million and store-level EBITDA margins of 17% or higher of net sales. These metrics underscore the brand’s financial health and operational efficiency, making it an appealing investment for Cracker Barrel. Scott Moore, co-founder and CEO of Maple Street Biscuit Company, will continue to lead the brand and report directly to Sandy Cochran. Moore expressed enthusiasm about the acquisition, emphasizing the shared values of scratch cooking and hospitality between Maple Street and Cracker Barrel. He believes Cracker Barrel’s resources and expertise will be instrumental in accelerating Maple Street’s growth and mission of community service through quality food and gracious service.
The financial impact of the acquisition is projected to be neutral to Cracker Barrel’s earnings per diluted share in fiscal year 2020, excluding acquisition and integration expenses. This suggests a balanced approach to growth, ensuring that the acquisition contributes to long-term value without immediate dilution of earnings. For customers and biscuit enthusiasts, this acquisition potentially means more Maple Street Biscuit Company locations in the future, backed by the robust infrastructure and resources of Cracker Barrel. While the press release doesn’t explicitly detail future location plans, the emphasis on growth potential strongly implies an expansion of Maple Street’s footprint.
Cracker Barrel Old Country Store, established in Lebanon, Tenn., in 1969, operates 660 company-owned Cracker Barrel Old Country Store locations across 45 states. With the addition of Maple Street Biscuit Company and the Holler and Dash concepts, Cracker Barrel is strategically diversifying its brand portfolio to capture a broader dining market. The acquisition of Maple Street Biscuit Company is a clear indicator of Cracker Barrel’s commitment to evolving and expanding its reach within the restaurant industry, promising potential growth in Maple Street Biscuit Company locations and brand presence nationwide.
