FOX Enterprise’ Jeff Flock stories on Cracker Barrel unveiling a brand new emblem as a part of a broader model replace.
The fallout from Cracker Barrel’s emblem change and restaurant makeover is not over. Shares of the meals chain plunged Thursday as buyer backlash and investor unease drove the chain’s worst dropping streak in months.
Shares of Cracker Barrel (CBRL) tumbled greater than 12% on Thursday, the steepest drop since April. The inventory, down 16.47% is on tempo for its worst five-day stretch since February 14, when it dropped 17.7%. Cracker Barrel’s inventory fell to $52, down greater than $6, or about 11%, marking its lowest stage since mid-June. Shares gained barely to $53.48 by the afternoon.
CRACKER BARREL UNVEILS NEW SIMPLIFIED LOGO: ‘OUR STORY HASN’T CHANGED’
| Ticker | Safety | Final | Change | Change % |
|---|---|---|---|---|
| CBRL | CRACKER BARREL OLD COUNTRY STORE INC. | 53.88 | -5.14 | -8.70% |
Since Might, Cracker Barrel — beloved for its Southern consolation meals, front-porch rocking chairs, and reward store full of knickknacks and old style sweets — has launched into a $700 million transformation throughout its 660-plus eating places.
The sweeping makeover contains “decluttered” eating rooms, a revamped menu, and different modifications aimed toward updating a model lengthy rooted in nostalgia.
CRACKER BARREL EXECUTIVE INSISTS RESTAURANT REMODELS ARE ‘WHAT THE GUESTS ASKED FOR’
On Tuesday, the model unveiled its new emblem, which drops an illustration of a person resting his arm on high of a wood barrel, a folksy picture that has embodied the model’s southern hospitality for the final 56 years.
A aspect by aspect of the Cracker Barrel emblem. (Cracker Barrel / Shutterstock)
Cracker Barrel described the brand new emblem as squarely anchored on the model’s “signature gold and brown tones” whereas incorporating “the enduring barrel form and phrase mark that began all of it,” the corporate mentioned in an announcement.
The assertion added that “farm recent scrambled eggs and buttermilk biscuits” served as inspiration behind the “hues of a refreshed coloration palette.”
Critics say the rebranding is a dangerous transfer for a corporation already combating skinny margins.
“Like Bud Gentle, or New Coke, that is yet one more instance of how abandoning your model and dependable prospects isn’t the way in which to develop a enterprise,” Richard Stern, Director of Thomas A. Roe Institute for Financial Coverage at The Heritage Basis, advised Fox Information Digital.
Stern added that Cracker Barrel has constantly posted weak revenue margins round 1.5%, “roughly a 3rd of what you’d anticipate from a profitable restaurant.” Stern argued that by chasing a brand new market, the chain has strayed from its roots: “Their model was partially the old style really feel of an American common retailer, harkening to the pioneer west and the expansion of rural highways,” Stern added.
Fox Information Digital’s Landon Mion contributed to this report.