Cracker Barrel Stock Surges After Reversing Logo Change

Cracker Barrel Old Country Store Inc. (CBRL) shares rallied over 7% in after-hours trading on Tuesday after the company capitulated to a week of intense public backlash, announcing it would scrap a newly introduced modern logo and revert to its classic 'Old Timer' design.

The decision followed a sharp rebuke from customers and a significant stock decline after the restaurant chain removed the iconic image of a man leaning against a barrel. The controversy reached a fever pitch when former President Donald Trump weighed in on social media, advising the company to “go back to the old logo, admit a mistake based on customer response.”

Hours later, Cracker Barrel confirmed the reversal. “We said we would listen, and we have. Our new logo is going away and our 'Old Timer' will remain,” the company stated, a move that immediately resonated with investors. The after-hours surge built upon a 6.4% gain during the regular trading day, recovering steep losses from the previous week.

The initial rebranding effort, part of a broader strategy by CEO Julie Felss Masino to modernize the 55-year-old chain, had an immediate and damaging financial impact. Following the unveiling of the new, text-only logo, the company’s stock plunged, at one point shedding nearly $200 million in market capitalization. The move was widely criticized by conservative commentators and some marketing experts as a “fiasco” that alienated its loyal customer base.

In response to the initial uproar, Cracker Barrel had defended the change as an evolution of the brand, but acknowledged it “could've done a better job sharing who we are.” The swift reversal suggests the company ultimately prioritized its traditional brand identity and customer sentiment over its modernization push, providing a stark lesson in the potential pitfalls of rebranding a beloved American institution.