TLDR
- Cracker Barrel stock dropped 7.2% Thursday, losing $94 million in market value after unveiling a new simplified logo
- The redesign removed “Uncle Herschel” character, sparking backlash from conservative customers who called it “woke”
- High short interest of 23% helped drive the initial decline, with short sellers recouping $280 million in prior losses
- Stock partially recovered Friday, closing at $54.40, still down 8% from Wednesday’s close
- Company faces stalling growth with flat revenue and modest same-store sales increases expected
Cracker Barrel’s stock took a beating Thursday as investors reacted negatively to the restaurant chain’s logo redesign. The company lost nearly $100 million in market value during a volatile trading session.
Shares plummeted $4.22 to close at $54.80, marking a 7.2% decline. During intraday trading, the stock hit a low of $50.27, representing a drop of up to 15% at one point.

The selloff coincided with Cracker Barrel’s announcement of its new streamlined logo. The updated design removes the iconic barrel image and “Uncle Herschel” character that had been part of the brand since 1969.
Conservative customers on social media criticized the change. Many labeled the rebrand as part of a broader “woke” cultural shift by the company.
Short Sellers Drive Initial Decline
The stock’s dramatic swing was amplified by heavy short interest. About 23% of Cracker Barrel’s publicly traded shares are currently shorted, well above the typical 10% threshold that indicates bearish sentiment.
Short sellers had been losing money on Cracker Barrel bets throughout 2025. Before Thursday’s drop, they had paper losses of approximately $280 million as the stock gained 12% year-to-date.
The logo controversy provided an opening for bears to finally profit. At Thursday’s lowest point, short sellers were able to cover their positions and recoup previous losses.
The high short interest created additional selling pressure. When stocks with large short positions begin falling, it can trigger a cascade effect as more investors rush to exit.
Company Defends Rebrand Strategy
CEO Julie Masino has positioned the logo change as part of broader modernization efforts. The company believes the simplified design better reflects its historical roots while appealing to contemporary consumers.
Cracker Barrel maintains that its core values remain unchanged despite the visual updates. “Our values haven’t changed, and the heart and soul of Cracker Barrel haven’t changed,” the company stated.
The restaurant chain emphasized that Uncle Herschel still appears in restaurants and on menus. Only the logo imagery has been modified as part of the rebranding initiative.
Management described customer feedback as “overwhelmingly positive.” However, marketing professionals have questioned whether the plain design might alienate loyal customers.
Financial Performance Shows Mixed Results
Cracker Barrel’s recent financial results present a challenging picture for investors. The company reported fiscal 2024 revenue of $3.5 billion, up slightly from $3.4 billion in 2023.
However, net income dropped to $40.9 million from $99 million the previous year. This decline highlights ongoing operational challenges facing the restaurant chain.
Same-store sales growth has been modest in recent quarters. Analysts expect only 2.5% same-store sales growth for the current fiscal year on flat total sales of $3.47 billion.
The latest quarterly revenue of $821.1 million showed minimal improvement from $817.1 million in the prior year period. Growth momentum appears to be stalling across key metrics.
Just two of nine analysts covering the stock rate it a Buy. This lack of analyst enthusiasm reflects concerns about the company’s growth prospects.
Stock Volatility Creates Trading Challenges
Friday’s trading saw partial recovery as shares stabilized around $54.40. While still down 8% from Wednesday’s close, the stock avoided further dramatic swings.
The narrow window of extreme weakness made it difficult for opportunistic buyers to capitalize. Shares rebounded quickly from their Thursday lows, limiting bargain-hunting opportunities.
Pre-market trading Friday showed additional recovery momentum. However, the stock remains well below its 2018 peak of over $180 per share.
Market volatility around logo changes is unusual but not unprecedented. The combination of short interest and social media backlash created perfect storm conditions.
Management Faces September Earnings Test
Cracker Barrel will report full-year earnings in September, providing the next major catalyst for the stock. Analysts will closely watch same-store sales trends and management commentary.
The company continues menu updates and restaurant remodeling as part of its modernization strategy. These initiatives aim to attract younger customers while retaining traditional patrons.
Revenue growth has remained relatively flat despite these efforts. Management faces pressure to demonstrate that rebranding investments are paying off financially.
The restaurant industry’s competitive landscape makes execution particularly important. Cracker Barrel must prove it can balance heritage appeal with contemporary relevance.
Recent trading data shows the stock closed Friday at $54.40, down less than one percent from Thursday’s volatile session.