Cracker Barrel Old Country Store Inc. (CBRL) said Wednesday that it will take a fiscal third-quarter charge of $133 million from the foreclosure of Punch Bowl Social. Cracker Barrel took 58.6% ownership interest in PBS Holdco in July 2019. PBS Holdco and its subsidiaries operated the Punch Bowl Social food, beverage and entertainment chain. Due to the coronavirus outbreak, operations were suspended at all 19 Punch Bowl Social locations and "substantially all" of the staff was laid off. Cracker Barrel plans to focus on its core business amid the pandemic. The $133 million charge represents all of the equity Cracker Barrel had in the Punch Bowl Social Business. Cracker Barrel's core business, which includes 664 Cracker Barrel restaurants and 28 Maple Street Biscuit Company locations, is operating as take-out and delivery-only establishments. Cracker Barrel has drawn down the remainder of its $950 million credit facility, about $490 million, which has a total weighted average interest rate of 2.81%. Cracker Barrel has about $400 million in cash on its balance sheet as of March 24. Cracker Barrel has also deferred its dividend payment scheduled for May 5 to September 2 for shareholders of record as of April 17. The company has suspended all further dividend payments. And Cracker Barrel has suspended its stock buyback program. On March 7, the company authorized a repurchase program of up to $25 million, of which $5 million has been spent. Cracker Barrel stock slipped 3% in Wednesday premarket trading, and has tumbled 41% over the past year. The S&P 500 index is down 12.5% for the last 12 months.
-Tonya Garcia; 415-439-6400; AskNewswires@dowjones.com
(END) Dow Jones Newswires
March 25, 2020 08:01 ET (12:01 GMT)
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