Cracker Barrel Shares Plummet Over 10% Amid Logo Rebrand and 'Woke' Backlash

Cracker Barrel Old Country Store, Inc. (CBRL) has seen its shares fall by over 10% following the unveiling of a new logo and broader rebranding efforts, which have ignited significant controversy, particularly among conservative consumers. The company's decision to remove the iconic man-and-barrel image from its logo, a staple since 1977, as part of its "All the More" campaign, has drawn comparisons to the 2023 Bud Light boycott.

The rebrand, spearheaded by CEO Julie Felss Masino, aims to modernize the Southern-themed restaurant chain and attract a broader customer base. Masino, who took the helm in July 2023, has stated the company needs to "regain relevancy" and that the changes, including updated restaurant interiors and new menu items, are designed to make Cracker Barrel "feel like the Cracker Barrel for today and for tomorrow."

However, the simplified logo, which returns to a text-only design reminiscent of its original 1969 emblem, has been met with fierce criticism online. Many social media users, including prominent conservative figures like Donald Trump Jr. and country singer John Rich, have accused Cracker Barrel of going "woke." John Rich explicitly questioned, "Will you go to Cracker Barrel now that it's going woke? This could be a ‘Bud Light’ moment in the making…," echoing sentiments of a potential consumer boycott. The tweet from "Resist the Mainstream" further highlighted this concern, asking, "> Will Cracker Barrel get the Bud Light treatment amid its rebrand controversy?"

The backlash extends beyond the logo to the company's diversity, equity, and inclusion (DEI) initiatives, with some critics calling for CEO Masino's resignation. Despite the negative reactions, Masino stated on Good Morning America that the feedback received on the rebrand has been "overwhelmingly positive." Cracker Barrel maintains that its core values and "country hospitality" remain unchanged, with Chief Marketing Officer Sarah Moore emphasizing, "Our story hasn’t changed. Our values haven’t changed."

The significant drop in stock value underscores the financial impact of such cultural controversies on publicly traded companies. The situation highlights a growing trend where brand decisions, particularly those perceived as moving away from traditional aesthetics or values, can trigger widespread online debate and consumer reactions.