Cracker Barrel’s (NASDAQ: CBRL) share price rose on Tuesday as investors reacted to a rebranding intervention by President Donald Trump. The move follows backlash against the company’s recent rebranding effort.
The stock climbed 5.24% to $57.11, rebounding from earlier losses. Over the past week, CBRL shares are down more than 3%, though year-to-date the stock has gained nearly 4%.
CBRL one-day stock price chart. Source: Google FinanceThe rally came after Trump urged the company to reverse its controversial rebranding. In a social media post on August 26, he said Cracker Barrel should restore its old logo, acknowledge the change as a mistake in light of customer backlash, and turn the uproar into a publicity opportunity.
Cracker Barrel controversial overhaul
Notably, the rebrand, part of a $700 million overhaul, had triggered strong criticism from loyal customers and analysts, sending shares down nearly 15% on August 21 and wiping out more than $100 million in market value.
The controversy centered on the company’s decision to drop the figure known as “Uncle Herschel” from its logo, a move critics argued undermined Cracker Barrel’s heritage. At the same time, the backlash spilled onto Wall Street, where short sellers accelerated the decline.
In response, Cracker Barrel said it could have handled the changes better, while emphasizing that its traditions remain central to the brand.
Despite Tuesday’s uptick, the stock remains under pressure as the chain grapples with competitive challenges and shifting consumer expectations.
Featured image via Shutterstock
Source: https://finbold.com/cracker-barrel-stock-surges-after-president-trumps-rebranding-advice/
