Cracker Barrel is your go-to place if you are craving some homestyle food. But currently, some fans of the restaurant chain are concerned amid the rumors of its shutting down. So, is it true? Is Cracker Barrel going out of business 2023?
Cracker Barrel has been in the business for a long time and has made its name for its delicious Southern-style food and its all-day breakfast and rich menu. It came a long way from selling gasoline to building a restaurant chain loved by many. It has faced all kinds of challenges that a company faces and bounced back in the market.
However, what happened this time that it had to close its business? If you are also curious about the future of Cracker Barrel, then keep on reading this article and know the facts.
About Cracker Barrel And How It Started
Cracker Barrel is a Southern country-themed American chain of restaurant and gift stores. The history of Cracker Barrel started from way back in 1969. It was founded by David Evins, who developed the gift store and the restaurant to improve the sales of gasoline.
The very first store was built in Lebanon, Tennessee, serving biscuits, grits, and country ham. Cracker Barrel grew rapidly in the 80’s and 90’s, reaching a $1 billion market value by 1992.
Each store is designed to provide a warm atmosphere that welcomes over 230 million people every year.
Moreover, the unique combination of dining options, shopping experiences, and classic rustic décor make Cracker Barrel stand out from other restaurants.
Is Cracker Barrel Going Out Of Business 2023?
No, Cracker Barrel is not going out of business. It may have closed some stores but it is not shutting down its entire business.
However, the closures in some major locations, such as Oregon, might raise concern among its fans, but the brand is not shutting down nationwide.
The store has also closed many locations outside Oregon. These locations include 2 in Mississippi and 1 each in South Carolina, Tennessee, Texas, and Missouri.
Also, every business has its ups and downs. This makes it important to differentiate the strategic closures of locations and closing down the entire business.
And the latter seems to be far away from Cracker Barrel. With 660 active stores and recent revenue growth, it doesn’t look like the company will shut down anytime soon.
Why Is Cracker Barrel Shutting Down Locations?
As of 2023, Cracker Barrel has closed the following locations:
- Bend, Oregon
- Tualatin, Oregon
- Beaverton, Oregon
The primary reason for these significant closures is none other than the COVID-19 pandemic.
On this matter, a spokesperson of the company stated the company is saddened over the fact that they couldn’t recover from the impact of the pandemic and were forced to close down their Beaverton, Bend, and Tualatin locations.
Where Can You Find Cracker Barrel Restaurant?
Although Cracker Barrel has been closing many of its stores in Oregon and Portland, you can still find its restaurants outside the state.
For example, the one in Medford is still operating its regular operation, but it can be a few hour’s drive from Portland.
So, before heading out to a Cracker Barrel restaurant with your family, make sure to check the locations that are still open through their site.
How Did The Rumors Start?
In the age of digital transformation, every news spread like a fire in the forest. The unsettling rumors of the restaurant shutting down started with online content.
The clickbait headline exclaimed, ‘Saying Goodbye: Stores Closing in 2021 Across The Nation’ with a picture of Cracker Barrel.
However, when people opened the article, it was found that Cracker Barrel was not even on the list and, therefore, had nothing to do with the post.
Moreover, many people believed this rumor to be true as the restaurant chain has faced many legal challenges due to allegations of discrimination.
What Is The Financial Position Of The Cracker Barrel?
Here are the financial statements of the restaurant chain to help better understand the financial position:
Cash Flow Statement Of Cracker Barrel
| July 23 | April 23 | January 23 | October 22 | |
|---|---|---|---|---|
| Free Cash Flow | $60.67M | $11.69M | $74.32M | $-22.38M |
| Operating Cash Flow | $99.22M | $50.41M | $101.42M | $-600.00K |
| Investing Cash Flow | $-37.67M | $-38.51M | $-26.68M | $-21.46M |
| Financing Cash Flow | $-58.85M | $-38.86M | $-64.04M | $15.66M |
Income Statement Of Cracker Barrel
| July 23 | April 23 | January 23 | October 22 | |
|---|---|---|---|---|
| Total Revenue | $836.73M | $832.69M | $933.87M | $ 839.52M |
| Gross Profit | $579.40M | $570.50M | $293.35M | $266.27M |
| EBIT | $64.70M | $12.25M | $38.97M | $23.62M |
| EBITDA | $111.04M | $57.20M | $67.72M | $51.59M |
| Net Income Common Stockholders | $37.46M | $13.97M | $30.49M | $17.13M |
Balance Sheet Of Cracker Barrel
| July 23 | April 23 | January 23 | October 22 | |
|---|---|---|---|---|
| Cash, Cash Equivalents and Short-Term Investments | $25.15M | $22.45M | $49.40M | $38.70M |
| Total Assets | $2.22B | $2.21B | $2.26B | $2.29B |
| Total Debt | $1.16B | $1.16B | $1.17B | $1.20B |
| Net Debt | $1.14B | $1.13B | $1.12B | $1.16B |
| Total Liabilities | $1.73B | $1.74B | $1.77B | $1.80 B |
| Stockholders Equity | $483.82M | $473.87M | $486.49M | $487.51M |
What Are The Best Things To Order In Cracker Barrel?
Conclusion
So, overall, Cracker Barrel is not going out of business, but the rumors of closures have made its customers wonder about: Is Cracker Barrel going out of business 2023?
It all started with online content, which just had a picture of the restaurant chain but had nothing to do with the post. And as the company has faced many legal actions due to the allegations of discrimination, which further made people believe the rumors.
However, the good news is that Cracker Barrel is not going out of business 2023 and closing its malfunctioning stores.
If you are looking for an opportunity to own a Cracker Barrel Franchise, then make sure to do your own research. This is because the company has a year-over-year revenue growth of 11%, but investing in the business is still risky.
FAQs
How is Cracker Barrel doing financially?
The company reported a total revenue of $836.7 million for the fourth quarter of fiscal 2023. This indicates the company is recovering from the impact of the pandemic.
Which states have no Cracker Barrel stores?
These 5 states have zero Cracker Barrel stores: Alaska, Hawaii, Vermont, Washington, and Wyoming.
Is Cracker Barrel in debt?
When you analyze the balance sheet of the company, you can see a total debt of $1.16 billion in July 2023.