The Fallout of the logo change of Cracker Barrel and the restaurant Makeover is not over. Shares of the food chain fell on Thursday when the recoil of the customer and the unrest of investors drove the worst losing series of the chain in months.
Shares of Cracker Barrel (CBRL) fell more than 12%on Thursday, the steepest decline since April.
The share, a decrease of 16.47%, is on pace for its worst five -day piece since 14 February, when it fell 17.7%. The shares of Cracker Barrel fell to $ 52, with more than $ 6, or around 11%, which marked the lowest level since mid -June. Shares won a bit to $ 53.48 by noon.
Cracker Barrel reveals new simplified logo: ‘Our story has not changed’
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| CBRL | Cracker Barrel Old Country Store Inc. | 54.09 | -4.93 |
-8.35% |
Since May, Cracker Vat, loved for being Southern Comfort FoodFront-Porch rocking chairs and gift shop filled with trash and old-fashioned sweets, started a transformation of $ 700 million in its 660-plus restaurants.
The radical make -over includes “tidy” dining rooms, a renewed menu and other changes aimed at updating a brand that is rooted in nostalgia for a long time.
Cracker Barrel Executive insists that Restaurant Remodels ‘what the guests asked’
On Tuesday, the brand unveiled his new logo, which drops an illustration of a man who lets his arm rest on a wooden barrel, a Folksy image that has embodied the southern hospitality of the brand over the past 56 years.
The old and new cracker vessel logos (Cracker Barrel / Shutterstock)
Cracker Barrel described the new logo as a square anchored on the “characteristic gold and brown tones” of the brand, while incorporating the iconic barrel shape and the word marking that it all started, “the company said in a statement.
The explanation added that “Farm fresh scrambled eggs and buttermilk cookies” served as inspiration behind the “shades of a renewed color palette.”
Critics say that the rebranding is a risky move for a company that is already struggling with thin margins.
Stern added that Cracker Barrel has consistently posted weak profit margins around 1.5%, “about a third of what you would expect from a successful restaurant.”
Stern argued that by chasing a new market the chain strayed from its roots.
“Their brand was partly the old -fashioned feeling of an American general, racing to the pioneerwest and the growth of national highways,” Stern added.
