Cracker Barrel Shares Down About 32% This Year, Following "Century's Worst Brand Blunder"

Cracker Barrel's attempt to modernize by removing its iconic mascot from branding backfired severely. The company's stock has plummeted 32% this year, nearing its 2008 financial crisis lows. CEO Julie Felss Masino's strategy to "revive" the chain by ditching its Southern identity was met with widespread backlash. Loyal customers, conservative activists, and even Donald Trump criticized the move. Some shareholders are now demanding Masino's removal and voting against board compensation. Biglari Capital, a significant shareholder, criticized management's "ill-conceived strategies" for exacerbating existing problems. Despite firing the marketing firm and halting remodel plans, customer traffic has not recovered according to data. Cracker Barrel acknowledges the feedback and claims a renewed focus on food and guest experience. This branding misstep occurred during a challenging period for the restaurant industry due to inflation and weak traffic. The company lost nearly $600 million in value due to this rebranding attempt. Competitors are also struggling, but Cracker Barrel's "woke makeover" is singled out as a particularly damaging blunder.