Cracker Barrel loses almost $100 million in value as stock plunges after new logo release
Cracker Barrel lost nearly $ 100 million in market value Thursday after his actions plunged after the publication of a new logo. The new design eliminates a long -standing drawing of a man dressed in global supported against a barrel, in favor of a cleaner logo with the name of the chain.
Cracker Barrel’s shares dropped $ 4.22, or 7.2%, $ 54.80 in negotiations on Thursday, allowing $ 94 million in market value. The action had dropped to a hollow of $ 50.27 earlier in the day, representing a loss of almost $ 200 million in capitalization.
The actions of Cracker Barrel won at the start of negotiations on Friday, but resumed their slide later during the day. The action closed 40 cents, or less than 1%, at $ 54.40.
The reaction of Wall Street to the overhaul of the logo intervenes while Cracker Barrel worked to update his image thanks to new menu elements and redecorated stores which avoid the old approach of the 55 -year chain in favor of a more modern look.
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According to the company’s website, the man and a barrel in the old logo represented “the experience of the old country store where people met and shared stories”.
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It is unusual that the course of the action of a company plunges considerably due to a recast of the logo, although the faux pas de marketing can lead investors to question the strategy of a company. The redesign of Cracker Barrel was supervised by CEO Julie Felss Masino, who last year describes the chain Also “not as relevant as we were in the past”, and announced its intention to update its menu at home.
In a statement to CBS News, Cracker Barrel said that the man portrayed in the logo, known as “Uncle Herschel”, will remain “at the front and center of our restaurants and on our menu”.
“Our values have not changed and the heart and soul of Cracker Barrel have not changed,” said society.
The new logo, which will appear on menus and marketing media, “is now even more closely rooted in the emblematic form of the Canon and Wordmark that started everything,” the company said in a press release on August 18.
Conservative commentators have challenged the brand change, the right -wing podcaster Matt Walsh calling it “more generic” on social networks. Marketing experts have also criticized the company’s overhaul. Many criticisms have taken a political tone, some social media commentators describing new design as “awake”.
The Kelly O’Keefe brand strategist, founding partner of the Federation of the Advisory Brand, said that the overhaul simplifies an “too complex logo”.
“In a normal marketing environment, it would not even be noticed, but these are not normal times,” said O’Keefe in an email. “Politically inert marketing movements are qualified as policy for opportunistic reasons.”
Another marketing expert pointed out that the overhaul is likely to deactivate the long -standing fans of the channel,
With the founder of Bolt Health, Kevin Dahstrom, who was director of marketing in several companies in the financial sector, describing the brand change of Cracker Barrel as “Fiasco”.
“The Saint Grail of Marketing is to create a brand that customers care – and to feel a certain property. It is extremely rare and when you have that – as Cracker Barrel – you have never abandoned it, you are only doubled,” wrote Dahlstrom on social networks.
Cracker Barrel was founded in 1969 and today operates nearly 660 locations belonging to companies in the United States
The growth of Cracker Barrel, which has skyrocketed in the 1990s as the chain has developed, has slowed down in recent years. For 2024, the company declared a turnover of approximately $ 3.5 billion, up 0.8% against $ 3.4 billion the previous year, while net profit fell to $ 40.9 million for the year, against $ 99 million in 2023.
For its last quarter, the company declared a turnover of $ 821.1 million, up slightly compared to $ 817.1 million, according to a regulatory file.
Cracker Barrel shares increased 7% this year to $ 55.42 as Friday morning, but the stock has dropped sharply since 2018, when it exceeded $ 180.
contributed to this report.
