Cracker Barrel (CBRL) Plunge 8.47% as Rebranding Reversal Sparks Steepest Selloff in Months

Shares of Cracker Barrel Old Country Store (CBRL) fell to their lowest level since May 2025 on Wednesday, with an intraday decline of 8.47%. The stock has now dropped 12.58% over three consecutive sessions, marking its steepest selloff in recent months amid a reevaluation of its strategic direction following a controversial rebranding reversal.

The recent turmoil stems from the company’s abrupt decision to unveil a minimalist, text-only logo and modernized store designs in late August 2025. The overhaul, part of a $700 million rebranding initiative, sparked widespread public backlash, with customers and competitors alike criticizing the departure from the brand’s nostalgic “old-timer” aesthetic. Social media campaigns and media coverage amplified the discontent, forcing the company to revert to its original “Uncle Herschel” branding within days. CEO Julie Masino acknowledged the misstep, stating the reversal highlighted the brand’s reliance on customer sentiment and heritage-driven identity.

Financial repercussions followed swiftly. A 8% drop in customer traffic after the logo change led to revised revenue forecasts for fiscal 2026, with the company projecting $3.35 billion to $3.45 billion in sales—below Wall Street’s $3.52 billion estimate. The decline in traffic is expected to result in a 4%-7% year-over-year sales drop for the year. Adjusted EBITDA was also forecasted to fall to $150 million–$190 million, down from $224.3 million in fiscal 2025, as the company redirected capital from store remodels to marketing and menu innovation.

In response to the backlash, Cracker Barrel has pivoted toward reinforcing its heritage. The company plans to leverage its iconic brand elements in future campaigns and announced plans to open two new stores in fiscal 2026. However, analysts caution that the rebranding fiasco underscores the risks of overhauling a brand’s identity without sufficient consumer input. While short-term resilience was seen in Q4 fiscal 2025 results, including a 5.4% rise in same-store sales, the stock remains under pressure as investors weigh the company’s ability to regain traffic and maintain profitability without further strategic missteps.

The episode has also reignited broader debates about brand identity in the hospitality sector. Competitors and critics emphasized the importance of preserving customer trust, with some viewing Cracker Barrel’s reversal as a cautionary tale for brands attempting to modernize without alienating their core audience. Moving forward, the company’s focus on menu innovation and heritage-driven marketing will be critical to restoring investor confidence and addressing macroeconomic challenges such as inflation and labor costs.