Cracker Barrel Shares Yeeted -10% After Earnings Reflect Horrific “Rebrand” Aftermath…

Live look at Cracker Barrel’s CEO after earnings: 

(Source: Giphy) 

So Cracker Barrel dropped earnings yesterday, and in the simplest explanation possible… it was, well…  violent. Translation: The Street did not pat them on the head for trying something “fresh.” Shares dumped nearly 10% after hours. Miss on revenue, miss on earnings, and a piss poor guidance. 

And yes, all of this traces back to the logo fiasco. A.k.a., the one that lasted 72 hours but apparently rattled the customer base harder than when Bud Light forced Dylan Mulvaney down everyone's throats (pun definitely not intended). For more context, Cracker Barrel spent August trying to be “modern,” swapped out the good ol’ country-store vibes, stripped the mascot, brightened the walls… and immediately detonated its entire brand equity. People revolted. People who have never used the word “revolt.” As any company would do with the backlash, they backtracked in a week… but the damage stuck. And now, the recent numbers perfectly reflect it.

(Source: NY Post) 

Uncle Herschel’s receipts:

Same-store restaurant sales: down 4.7%. Retail: down 8.5%. Net income swung from $5M profit to a $25M loss. Meanwhile, guidance was cut so deep (read: $3.2B-$3.3B from $3.35B-$3.45B) it might qualify for disability. What’s more is that the board drama hasn’t helped either. Shareholders kept the CEO but kicked a director to the curb, which tells you exactly how confused everybody is. When your governance looks like jury duty in a town of 400 people, nothing good is happening.

That said, where does Cracker Barrel go from here? Well, other than figuring out how to get its own house in order… Everyone hopes they remember that you definitely cannot rebrand nostalgia without getting dragged behind the metaphorical tractor. As we all know, and have heard many times… Cracker Barrel found out the hard way that its customer base doesn’t want “updated.” They want the same porch, the same rocking chairs, the same menu laminated since Bush was president, and the smell of a candle store trapped in 2004. That’s the whole point. Simpler times. 

(Source: Giphy) 

Instead, they tried to become Panera with fiddles in the face of a customer base that literally responded with “Eat sh*t”. As for the stock, I’m sure it’ll bounce back eventually. “BTFD”, anyone? Especially as people love breakfast with emotional support. But for now… the negative sentiment may not be done hitting an old man in public. Until next time, friends… 

At the time of publishing, Stocks.News does not hold positions in companies mentioned in the article.