Cracker Barrel Old Country Store Inc (NASDAQ: CBRL) $700 million brand overhaul, including a redesigned logo, has sparked backlash from loyal customers and social media critics.

According to them, the company is abandoning its country roots. The new logo – stripped of its iconic elderly figure and rustic charm – was mean to modernize the brand.

Instead, it triggered a wave of online outrage and an over 10% decline in Cracker Barrel stock.

While the company hoped to attract younger consumers with a cleaner aesthetic, the move alienated longtime fans and raised questions about the wisdom of rebranding a legacy identity.

At the time of writing, Cracker Barrel stock is down more than 20% versus its year-to-date high.

Three things Cracker Barrel did wrong with the logo rebranding

In a recent CNBC interview, Wharton school’s marketing professor Americus Reed said CBRL’s rebranding effort was a textbook marketing blunder. 

First, they changed too much too fast. “You want to tweak a little bit,” Reed said, emphasising that subtlety is key in logo evolution.

Second, they failed to craft a compelling narrative around the change. “You must have the narrative prepared to tell consumers why you’re doing this,” he noted. Without that, customers filled the silence with outrage.

Third, the company didn’t test the redesign with its most loyal customer base, which could have helped them “figure it out way before this spiralled out of control,” Reed told CNBC on Friday.

CBRL stock remains attractive for income-focused investors with a dividend yield of 1.83%.

Why CBRL can’t go back to the old logo

Americus Reed cautioned against reverting to the original logo as well during the CNBC interview.

If CBRL were to backtrack, it would signal two things to its customers and investors – neither of which bodes well for the Cracker Barrel shares.

“One if that you don’t really know what you’re doing as a marketer. And two, you’re willing to fly by the wind.”

That kind of reversal could damage brand credibility and confuse future positioning, Reed noted, adding Cracker Barrel’s challenge now is to refine the rollout, not retreat from it.

Reed suggests the company should “redefine and create the important moment,” rather than panic in response to social media outrage. A full reversal may do more harm than good.

Should you buy Cracker Barrel stock today?

Cracker Barrel’s long-term prospects hinge on whether its rebranding can attract new customers without alienating its core base.

Investors should watch how the company navigates this branding crisis. If management can stabilise sentiment and clarify its modernisation strategy, there may be upside.

However, the backlash underscores the risks of misaligned messaging in consumer-facing businesses.

For now, CBRL remains a wait-and-see stock – potentially undervalued, but vulnerable to further reputational hits.

Wall Street also currently rates Cracker Barrel stock at “hold” only, with the mean target of roughly $55 already in line with the price at which it’s trading currently.

The post Cracker Barrel stock: why going back to the old logo just isn’t an option appeared first on Invezz