Cracker Barrel plans to close 14 Maple Street locations

Core Insights - The company plans to close 14 Maple Street Biscuit Company locations in fiscal year 2026, a significant shift from earlier expectations of opening new units [1][2] - The decision to slow down Maple Street's growth is part of a strategic focus on improving the core Cracker Barrel business, leading to a goodwill impairment of $4.7 million [3] - Maple Street's performance has negatively impacted the company's financials, including a noncash store impairment charge of $16.2 million in Q4, primarily due to low-performing locations [5] Growth and Performance - Cracker Barrel acquired Maple Street in 2019 for approximately $36 million, and the brand had grown to 69 locations by the end of 2024, reflecting a 9.5% increase in unit count from 2023 [4] - Sales for Maple Street increased by 17.5% year-over-year, indicating some growth potential despite the current challenges [4] - The company had initially projected nine to eleven new Maple Street locations early last year but revised this forecast down to four for fiscal year 2025 [6][7] Strategic Focus - The current leadership, under CEO Julie Fells Masino, is prioritizing the revitalization of the Cracker Barrel brand over the expansion of Maple Street [3][7] - Executives have expressed a strong commitment to transforming Cracker Barrel and returning it to growth, indicating a strategic shift in focus [7]