Cracker Barrel drops on planned $275 mln convertible debt deal

Cracker Barrel Old Country Store

09/06/2025 21:26

** Shares of Cracker Barrel Old Country Store CBRL.O down 7.8% post-market to $56 as casual dining chain seeks capital raise

** Lebanon, Tennessee-based co announces private offering of $275 mln convertible bonds (CBs) due 2030

** Co plans to use portion of net proceeds to pay for capped calls, derivative transactions to offset dilution

** It plans to use remainder for general purposes, including redemption or repayment of debt including its 0.625% CBs due 2026 or under its revolving credit facility

** CBRL shares closed up 9.7% at $60.74 on Mon, giving co ~$1.4 bln market cap, per LSEG data

** Stock up 15% YTD

** Avg rating among 10 analysts covering CBRL is "hold" and median PT is $55, up from $48 a month ago, latest LSEG data shows

(Lance Tupper is a Reuters market analyst. The views expressed are his own)

((lance.tupper@tr.com 1-646-279-6380))