Cracker Barrel (CBRL) is back in the news, and Wall Street is watching closely! After a recent logo redesign sparked controversy, the company has reversed course, bringing back its iconic 'Old Timer' logo. Could this 'late August hubbub,' as one analyst calls it, actually benefit the business?
Citi's Jon Tower believes the answer is yes. In a note to clients published Wednesday, Tower suggested that the increased attention, driven by the logo drama, could spark curiosity and drive near-term traffic to Cracker Barrel locations. The company's stock jumped as much as 8% early Wednesday, signaling investor optimism.
The logo saga began last week when Cracker Barrel unveiled a minimalist redesign. However, the change was met with swift backlash from loyal customers, and even caught the attention of former President Trump, who urged the restaurant to revert to its original logo on Truth Social.
Cracker Barrel listened. On Tuesday night, the company announced that it was bringing back the 'Old Timer' logo, featuring Uncle Herschel and the barrel. "We thank our guests for sharing your voices and love for Cracker Barrel. We said we would listen, and we have. Our new logo is going away and our 'Old Timer' will remain," the company stated.
Tower noted that Google searches for "Cracker Barrel" reached a record high over the past week. While the long-term impact of the logo reversal remains to be seen, the near-term attention could provide a much-needed boost. The logo revamp was part of a larger campaign dubbed "All the More," with new menus and advertisements. Only time will tell if the renewed focus translates into sustained growth and addresses the brand's challenges in attracting younger consumers.
Key Takeaways:
- Cracker Barrel reversed its logo redesign after customer backlash.
- Wall Street analysts believe the controversy could drive near-term traffic.
- Google searches for "Cracker Barrel" hit a record high.
- The company's stock price saw a significant increase.