Cracker Barrel Old Country Store has acquired fast-casual concept Maple Street Biscuit Co. in an all-cash transaction valued at $36 million.
Maple Street Biscuit Co. offers “Comfort food with a modern twist,” with fresh biscuits, chicken, sausage (or shiitake) gravy, and house-made jams and jellies as the basis for its menu. Founded by Scott Moore and Gus Evans in Jacksonville, Florida in 2012, there are currently 28 company-owned and five franchised fast-casual locations across seven states. The company has targeted average unit volumes (AUVs) of $1.0+ million and targeted store-level EBITDA of 17 percent or more of net sales.
Cracker Barrel expects the acquisition to be approximately neutral to earnings per diluted share in fiscal 2020.
“From the beginning, Maple Street Biscuit Co. has focused on serving its communities through comfort food with a modern twist and gracious service,” says Scott Moore. “Our brands share many similarities such as scratch cooking and an emphasis on hospitality. I’m excited about this opportunity, and I believe Cracker Barrel will help us grow our brand and further achieve our mission of helping people, serving others, and being a part of the community.”
Cracker Barrel plans to convert its Holler & Dash Biscuit House units into Maple Street Biscuit Co. locations in the coming months. Moore will remain CEO of Maple Street and will report directly to Sandra B. Cochran, president and CEO of Cracker Barrel.
“The breakfast and lunch-focused fast casual category is an attractive segment, and our experience with Holler & Dash has reinforced this belief,” says Cochran. “We have long admired Maple Street Biscuit Co. with its emphasis on made-from-scratch food and hospitality.
“It is a proven brand with attractive unit economics and strong growth potential, and it is positioned to become a leader in this category. The acquisition accelerates our penetration in this segment and provides growth for delivering shareholder value. I look forward to working with Scott and his team as we further grow this brand together.”