Following a steep drop in its stock price following the reveal of a new logo, Cracker Barrel saw a significant decline of roughly $100 million in market value on Thursday. This contemporary design streamlines the long-standing image of a man in overalls leaning on a barrel by just displaying the name of the chain.
With the release of Cracker Barrel’s new logo, its stock fell by $4.22 on Thursday, a 7.2% decline that lowered the price to $54.80 and cost the company $94 million in market value. Early in the day, the stock had dropped to $50.27, suggesting a total loss of almost $200 million in its total worth. Early trading in Cracker Barrel showed a little rise on Friday, but eventually they fell throughout the day. At $54.40, the stock finished the day down by 40 cents, or less than 1%.
Wall Street’s reaction to the Cracker Barrel’s new logo change coincides with the firm’s effort to modernise its image by means of fresh menu items and store renovation, abandoning the classic, nostalgic look that has characterized the 55-year-old company in favor of a more modern appearance.
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As indicated on the company’s website, the image of the guy and the barrel in the previous logo represented “the old country store experience where folks would gather around and share stories.” Though marketing errors can cause investors to rethink a company’s strategic course, it is rather uncommon for a company’s stock value to drop so dramatically as a result of a logo update.
CEO Julie Felss Masino has spearheaded the rebranding campaign at Cracker Barrel; last year, she pointed out that the chain was “not as relevant as we once were” and outlined plans to revitalize its traditional menu options. Cracker Barrel said in a statement supplied to CBS News that the character shown in the logo, referred to as “Uncle Herschel”, would continue to be prominently featured “front and center in our restaurants and on our menu.”
