Cracker Barrel Loses $200 Million in Market Value After Logo Redesign

MoneyWatch | Updated August 21, 2025 | Cracker Barrel Old Country Store Inc. suffered a sharp decline in market value on Thursday, losing nearly $200 million after the company unveiled a controversial new logo. The rebrand, which eliminates the familiar illustration of an overall-clad man leaning against a barrel, sparked backlash from both investors and customers, sending shares tumbling.

Stock Market Reaction

Shares of Cracker Barrel dropped as much as $8.74, or almost 15%, during Thursday trading, erasing about $194.6 million in market capitalization. By early afternoon, the stock recovered slightly but still remained down $8.19, or 13.9%, at $50.84 per share.

Such a steep decline tied directly to a logo redesign is unusual, though analysts note that missteps in branding can raise broader concerns about a company’s strategic direction.

Company’s Rebranding Efforts

The redesign is part of a larger effort by Cracker Barrel to modernize its image. In recent years, the 55-year-old restaurant chain has introduced new menu items, redecorated stores, and shifted away from its old-time country-store theme.

The company explained that the man featured in the old logo — known as “Uncle Herschel” — will still appear in restaurants and on menus, but the new logo will instead emphasize the barrel shape and wordmark.

In a statement to CBS News, Cracker Barrel said:

“Our values haven’t changed, and the heart and soul of Cracker Barrel haven’t changed. The new logo is now rooted even more closely to the iconic barrel shape and wordmark that started it all.”

Criticism from Experts and Commentators

The new look immediately sparked criticism. Conservative commentator Matt Walsh dismissed the design as “more generic,” while marketing professionals also questioned the move.

Kevin Dahlstrom, founder of Bolt Health and a seasoned marketing executive, described the rebrand as a “fiasco,” arguing that Cracker Barrel abandoned a rare brand connection with its customers.

“The holy grail of marketing is to create a brand that customers give a damn about — and feel some ownership of. It’s exceedingly rare, and when you have that — as Cracker Barrel did — you NEVER EVER abandon it, you only double down on it,” Dahlstrom wrote on social media.

Leadership’s Vision

The overhaul has been led by CEO Julie Felss Masino, who previously acknowledged that Cracker Barrel was “not as relevant as we once were.” She has pushed for modernization of the menu, restaurant designs, and branding in an attempt to appeal to younger demographics while maintaining loyalty among longtime customers.

Outlook

While Cracker Barrel maintains that its identity and values remain unchanged, the market response highlights the risks associated with rebranding a legacy company. Whether the redesign ultimately helps the chain broaden its appeal or further alienates its loyal customer base remains to be seen.