Cracker Barrel lost close to $100 million in market value on Thursday after investors reacted sharply to the release of its redesigned logo. The new look drops the well-known illustration of a man in overalls leaning against a barrel, opting instead for a simplified version that features only the company’s name.
Shares of the restaurant chain fell $4.22, or 7.2%, closing at $54.80 and wiping out $94 million in market value. At one point, shares dipped as low as $50.27, representing a nearly $200 million drop in capitalization.
The stock briefly bounced back in early trading Friday but soon slid again, ending the day down 40 cents at $54.40. Losses continued Monday, with shares falling about 1% in late afternoon trading.
The backlash comes as Cracker Barrel works to modernize its brand, updating menu offerings and redesigning stores to move away from the rustic aesthetic that has defined the chain for 55 years.
According to the company’s website, the old logo’s imagery of a man and barrel symbolized “the old country store experience where folks would gather around and share stories.” In a statement to CBS News, the company stressed that “Uncle Herschel,” the figure from the retired logo, will remain a presence in restaurants and on menus.
“Our values haven’t changed, and the heart and soul of Cracker Barrel haven’t changed,” the company said. An updated statement released Monday acknowledged criticism of the rebrand, saying it revealed the company “could’ve done a better job sharing who we are and who we’ll always be.”
The new logo, which will appear on menus and marketing materials, is described as being “rooted even more closely to the iconic barrel shape and wordmark that started it all,” according to an Aug. 18 press release.
Reaction has been mixed. Conservative commentator Matt Walsh called the logo “more generic,” while other critics on social media dismissed it as “woke.” Marketing experts also weighed in. Brand strategist Kelly O’Keefe of Brand Federation said the change simplifies an “overly complex logo,” noting that even neutral branding decisions are now being politicized.
Kevin Dahlstrom, founder of Bolt Health and a longtime marketing executive, described the rebrand as a major misstep. “The holy grail of marketing is to create a brand that customers give a damn about — and feel some ownership of,” Dahlstrom said. “It’s exceedingly rare and when you have that — as Cracker Barrel did — you never abandon it, you double down on it.”
Founded in 1969, Cracker Barrel today operates nearly 660 company-owned restaurants across the U.S. While the chain grew rapidly through the 1990s, its expansion has slowed. For 2024, revenue reached $3.5 billion, up 0.8% from the prior year, but net income fell sharply to $40.9 million from $99 million in 2023.
In its most recent quarter, the company reported revenue of $821.1 million, a slight increase from $817.1 million the year before, according to a regulatory filing.
Cracker Barrel shares are up 7% so far in 2025, trading at $55.42 as of Friday morning. Still, the stock has declined steeply from its 2018 peak above $180.
