Cracker Barrel Shares Jump 9% After $77 Million Deal Cuts Debt
Updated
Updated · Fox News · Jul 22
Cracker Barrel Shares Jump 9% After $77 Million Deal Cuts Debt
3 articles · Updated · Fox News · Jul 22
Summary
Cracker Barrel rose 9% to $58.20 in after-hours trading after outlining transactions expected to generate about $77 million in net proceeds.
The cash comes from divesting Maple Street Biscuit and completing a sale-leaseback with an institutional real estate investor covering 26 company-owned Cracker Barrel locations.
The company said it plans to use the proceeds for debt reduction, making balance-sheet repair the immediate driver behind the stock move.
The rally suggests investors welcomed the liquidity boost, even as sale-leaseback deals can leave restaurant chains with ongoing lease obligations.