Cracker Barrel shares jumped over 5% Tuesday, after Donald Trump spoke out against the controversial rebranding of the restaurant. He urged it to return its original logo.
Last week, the stock fell after the public reacted to the new logo of the company, which did not include the figure seated in a chair. This caused a stir among conservatives and loyal customers.
Trump’s remarks on Truth Social sent shares up, despite the fact that the company had struggled in recent times to maintain momentum.
Trump calls for a return of the old logo
Trump wrote on Twitter on Tuesday that Cracker Barrel “should go back to its old logo and admit any mistakes based on the customer feedback (the ultimate poll)” in order to better manage the business.
Source : Truth Social
He added that “a billion dollar worth of publicity was generated by the company” and encouraged it to host a large press conference. He wrote: “Make Cracker Barrel an WINNER AGAIN!”
Backlash for Bud Light comparisons
Brand experts likened the recent controversy to Bud Light’s highly-publicized marketing crisis of 2023. At that time, a campaign featuring transgender influencer Dylan Mulvaney led to a boycott. This forced Anheuser-Busch to take damage-control measures.
In a Barron’s article, David E. Johnson of Strategic Vision PR Group, Atlanta CEO, said that Cracker Barrel alienated their core customers.
Trump added that Trump’s intervention would “just keep this story in the media.”
Cracker Barrel stock lost over half of its value during the past three years, as the sales remain slow in this post-pandemic period.
Shares, closely monitored due to the relatively high short-term interest level, are often impacted by news events.
New design defends company
On August 19, the Tennessee-based company announced that it had updated its logo five times. The new version is “rooted more closely” to the original barrel and wordmark.
Backlash erupted when the figure of “old-timer”, inspired by Dan Evins’ Uncle Herschel (founder), was removed.
Donald Trump Jr. also joined in the criticism. He called the new branding “sterile and soulless” on X.
Cracker Barrel responded by posting a long note on their website assuring its customers that they would keep the man on their menus, signs and stores.
The company stated that “he is not leaving — he will always be with us.” It added that the rocking chairs and fireplaces as well as the peg-games, gift shop, etc., would remain the same.
Experts say that missed opportunities are a common occurrence
Johnson claimed that Johnson’s company mishandled both the launch and the defense.
He said that if the rebranding was a mistake of monumental proportions, then the reaction was worse. As a hospitality business, it’s important that all stakeholders buy into the brand.
Cracker Barrel was founded in Lebanon, Tennessee, in 1969. It operates more than 660 restaurants owned by the company in 43 different states. Maple Street Biscuit Co. is also a Cracker Barrel franchise.
The post Cracker Barrels shares rise after Trump calls for return of old logo could be updated as new developments unfold.
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