Cracker Barrel Sells 26 Restaurants for $77 Million Amid Recovery Plan

Cracker Barrel has sold 26 of its company-owned restaurants for approximately $77 million in net proceeds, the company announced during its fourth-quarter earnings call earlier this week. The proceeds from the sale are earmarked for reducing the company's debt and funding future growth initiatives.

The sale of these locations comes as the country-style chain implements a broader recovery plan. This includes a leadership change, with Dave Deno taking over as CEO in August, following the departure of Julie Masino. Masino's tenure included a brand refresh that faced significant backlash from some long-time customers.

In addition to the real estate transaction, Cracker Barrel is focusing on enhancing its food quality. Specifically, the company is upgrading its chicken, hamburger, and steak offerings. President and CEO Dave Deno stated that these investments are aimed solely at improving guest satisfaction and are factored into the company's financial guidance.

Cracker Barrel aims to ensure consistency in taste, temperature, and quality for its guests with every visit. While dinner is the current focus for improvements, breakfast remains the chain's strongest daypart in terms of both food scores and traffic trends.

The company is prioritizing these operational and financial adjustments to address recent challenges, including declining customer traffic, after previously abandoning a rebranding effort that proved unpopular.