Cracker Barrel stock falls 10% amid backlash to brand refresh

Shares of Cracker Barrel Old Country Store tumbled about 10% on Thursday after the restaurant chain unveiled a redesigned logo and broader brand refresh that drew swift reactions from investors and customers alike.

The Tennessee-based company, long known for its Southern country aesthetic and comfort-food menu, said the move is part of a strategic transformation launched in May 2024 to modernize its image while retaining its roots in hospitality.

At the time of writing, the stock was trading at $54.20, down by 8.17%.

Logo overhaul sparks controversy

The new logo eliminates one of the chain’s most recognizable visual elements: the image of a man leaning against a barrel.

The updated branding instead features the words Cracker Barrel on a yellow background, while the phrase Old Country Store has been dropped entirely.

Company executives said the colors were inspired by staples of its breakfast menu, such as scrambled eggs and biscuits.

Chief Marketing Officer Sarah Moore emphasized in a media release that the refresh was not intended to abandon the chain’s traditional values.

“We believe in the goodness of country hospitality, a spirit that has always defined us. Our story hasn’t changed. Our values haven’t changed,” she said.

Despite these assurances, the logo shift ignited criticism across social media.

Some conservative commentators argued the change was unnecessary and politically motivated. Donald Trump Jr. amplified a post alleging that the redesign downplayed American traditions to align more closely with diversity, equity, and inclusion initiatives.

Stock market reaction and brand perception

Cracker Barrel, which has a market capitalization of about $1.2 billion, saw its shares fall sharply following the rollout.

While the decline highlights the sensitivity of consumer-facing brands to public opinion, it also underscores how cultural debates can spill over into financial markets.

The backlash is not unprecedented. Earlier this month, shares of American Eagle surged after Donald Trump praised an advertisement featuring actress Sydney Sweeney, despite criticism from some quarters.

In 2023, Anheuser-Busch InBev faced a boycott campaign and a market reaction after Bud Light partnered with transgender influencer Dylan Mulvaney.

For Cracker Barrel, the criticism extends beyond the logo.

Customers on social media have expressed dissatisfaction with the redesign of restaurant interiors, which they argue has shifted toward a more modern and sterile style at the expense of the rustic country charm for which the chain is known.

Remodels and strategic transformation

CEO Julie Felss Masino has positioned the refresh as part of a larger transformation strategy aimed at revitalizing the 55-year-old brand.

On the company’s June earnings call, Masino said Cracker Barrel had already completed 20 remodels and 20 refreshes. She noted that both employees and customers had responded positively to the changes, describing the redesigned spaces as “lighter, brighter, more welcoming.”

The company plans to share additional details about the remodeling initiative in September, including progress updates and future expansion.

Cracker Barrel has also stressed that its mission remains centered on family dining, hospitality, and retail offerings that reflect its heritage.

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