Cracker Barrel shares drop as logo change blowback dents restaurant traffic

Core Viewpoint - Cracker Barrel's shares dropped nearly 10% due to social media backlash over a logo change, leading to a decline in customer traffic and the cancellation of store remodel plans [1][2]. Group 1: Logo Change and Customer Reaction - The company reverted to its "Old Timer" logo after facing criticism, including from former President Donald Trump, for removing the "Uncle Herschel" image [2]. - The new logo was in use for about a week, during which the company began modernizing store layouts but has since abandoned these plans [3]. Group 2: Impact on Store Traffic - Store traffic fell approximately 8% since the new logo's launch, compared to a 1% decline in the first half of the month [4]. - The company expects traffic to decrease by 7% to 8% for the current quarter but anticipates improvement in the latter half of the year [4]. Group 3: Financial Outlook - Cracker Barrel's efforts to modernize were aimed at rekindling demand amid high menu prices and inflation, but the forecast for fiscal 2026 total revenue is between $3.35 billion and $3.45 billion, below analysts' expectations of $3.48 billion [5]. - Increased marketing expenses are anticipated for the year as part of the company's strategy to recover from the backlash [5]. Group 4: Analyst Insights - The negative impact from the rebranding backlash has been significant, but efforts to reintroduce popular menu items and enhance marketing could lead to some recovery [6].