Cracker Barrel shares slump 10% after first sales results since woke rebrand U-turn

Cracker Barrel shares fell about 10% in after-hours trading on Wednesday after the restaurant and retail operator reported its first sales results since reversing branding changes tied to a woke rebrand. The company said quarterly sales were about $30 million lower than the year-ago period, a drop equivalent to roughly 2.3 million plates of its country fried steak. Profit fell nearly 47% as costs rose and retail sales contracted. The company posted $3.48 billion in annual revenue, up 2.2% from 2024.

Investors pushed the stock lower after the bell, with shares sliding about 10% in after-hours trading.

Cracker Barrel embarked on a modernization push in 2024, spending an estimated $700 million to refresh its brand and stores under Chief Executive Julie Felss Masino, a former Taco Bell executive. In August of that year the company unveiled a new logo and signage intended to signal a broader image shift, replacing the cross-legs-on-a-rocking-chair emblem with a simpler yellow backdrop. The response from customers, staff and conservative commentators was swift, with critics labeling the changes as too far from the chain’s heritage and calling the rebrand unnecessary.

Cracker Barrel quickly reversed course on the branding, announcing that it would keep its old signs, while later signaling a broader pause or reversal of some modernization elements. Critics argued the redesigns altered familiar curbsides and interiors at a pace that eroded the brand’s identity. Supporters of the turnaround contended the attention drew publicity, though analysts cautioned that visibility does not always translate into immediate sales.

According to reporting in the Daily Mail, analysts noted that the brand’s high-profile attention could help with visibility but is unlikely to substantially lift short-term sales. Neil Saunders, a retail expert at GlobalData, said the publicity is helpful for brand awareness but unlikely to move the needle on revenue in the near term. YouGov polling cited in the coverage found that 65% of Americans were aware of the logo change, but only 29% said the changes would make them less likely to dine there. Other analysts attributed the results to management missteps during the rollout, with Jerry Thomas, CEO of Decision Analyst, describing the branding episode as a major failure of Cracker Barrel’s senior leadership.

This is a developing story; updates will follow as the company reports more detailed quarterly results and outlines its path forward amid ongoing branding questions.