Cracker Barrel’s new logo design has led to a sharp decline in its stock value, shedding almost $100 million in market worth. The company’s shares plummeted 7.2% to $54.80 after the release of the redesigned logo, which replaces the iconic image of an overall-clad man leaning against a barrel.
The new logo aims to give the chain a more modern look while maintaining its down-home essence. However, not everyone is pleased with the change. Conservative commentators and marketing experts have criticized the redesign, labeling it “more generic” and arguing that it risks alienating long-time fans of the brand.
Cracker Barrel’s CEO, Julie Felss Masino, has stated that the company’s values remain unchanged despite the logo overhaul. The new design will still feature the iconic barrel shape and wordmark, but with a cleaner aesthetic.
The reaction to the logo redesign is unusual, as companies usually experience an increase in stock value after revamping their brand image. Cracker Barrel’s growth has slowed in recent years, and the company reported revenue of $821.1 million for its most recent quarter, up slightly from the previous year.
Shares have risen 7% this year to $55.42, but the sharp decline since 2018, when it topped $180, suggests that investors are taking a cautious approach. With the new logo design, Cracker Barrel aims to refresh its image and attract new customers while maintaining its loyal fan base.
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Source: https://www.cbsnews.com/news/cracker-barrel-cbrl-stock-down-200-million-loss-new-logo-change