Thinking about visiting a Cracker Barrel (CBRL) now that you’ve heard so much about it? At least one analyst on Wall Street thinks so.
In a client note published Wednesday, Citi’s Jon Tower said the “late August hubbub” over the brand could actually benefit the business in the near term.
Cracker Barrel stock was up as much as 8% early Wednesday.
“While the lasting impact on the business is unclear, this late August hubbub has drawn attention … growing attention does not always translate into consistent visits nor solve the brand’s longer-term issues around relevancy to younger consumers, but could spark curiosity and visits near-term as consumers determine what all the ballyhoo was all about,” he wrote in a note to clients.
Tower said that searches for “Cracker Barrel” hit a record high on Google over the past week.
Cracker Barrel redesigned its logo to a more minimalist look last week, then reverted to its old logo on Tuesday night, featuring the image of Uncle Herschel — or “Old Timer” — and the barrel after a broad customer backlash and some cajoling from President Trump, who posted on Truth Social that the restaurant should reverse its rebrand.
“We thank our guests for sharing your voices and love for Cracker Barrel. We said we would listen, and we have. Our new logo is going away and our ‘Old Timer’ will remain,” the company said in a statement to Yahoo Finance.
The stock popped on Tuesday morning after the company reversed course, adding to gains seen Tuesday after Trump weighed in. The logo revamp was part of a larger campaign dubbed “All the More,” with new menus and advertisements, among other initiatives.
It’s all part of a three-year transformation the company had set out on.
“We’re in the middle of a three year transformation and as we’ve shared with the Street and all of our investors, it’s not gonna be a straight line,” CEO Julie Felss Masino, who joined the company in 2023, told Yahoo Finance in June.
The price tag on the transformation is roughly $700 million over the three-year period, with changes to the restaurant including a more modern look. It remains to be seen if the company will continue the redesigns.
Over the past few years, Cracker Barrel has struggled to keep pace with its casual dining peers like Chili’s, owned by Brinker International (EAT).
In its most recent quarter, Cracker Barrel’s same-store sales growth for its restaurant business was up 1%, compared to Chili’s same-store sales growth of 23.7%. Same-store retail sales fell 3.8% during the period.
