Cracker Barrel loses almost $100 million in market value after new logo revealed

Cracker Barrel lost almost $100 million in market value after its stock plunged yesterday following the release of its new logo.

The logo no longer features an overall-clad man leaning against a barrel, and now just has the company name in text

As CBS News reports, Wall Street’s reaction to the logo redesign comes as Tennessee-based Cracker Barrel has been working to refresh its image through new menu items and redecorated stores that abandon the 55-year-old chain’s old-timey approach in favor of a more modern look.

In a statement to CBS News, Cracker Barrel said that the man portrayed in the logo, known as “Uncle Herschel,” will remain “front and center in our restaurants and on our menu.”

“Our values haven’t changed, and the heart and soul of Cracker Barrel haven’t changed,” the company said.

The new logo, which will appear on menus and marketing materials, “is now rooted even more closely to the iconic barrel shape and wordmark that started it all,” the company said in an Aug. 18 press release.

Conservative commentators took issue with the rebrand, with right-wing podcaster Matt Walsh calling it “more generic” on social media. Marketing experts also criticized the company’s overhaul. Many of the criticisms took on a political tone, with some social media commenters describing the new design as “woke.”

Cracker Barrel’s growth, which soared in the 1990s as the chain expanded, has slowed in recent years. For 2024, the company reported revenue of roughly $3.5 billion, up 0.8% from $3.4 billion the previous year, while net income fell to $40.9 million for year, down from $99 million in 2023.

For its most recent quarter, the company reported revenue of $821.1 million, up slightly from $817.1 million, according to a regulatory filing.

— From CBS News