Cracker Barrel investors are still taking a cautious tone despite the restaurant chain’s mea culpa on Monday over its brand remake, which was quickly labeled woke, alienating core customers.
Shares ended the session fractionally lower but have lost over 10% since the announcement last week, erasing over $143 million in market value, as tracked by Dow Jones Market Data Group.
By comparison, the S&P 600, the benchmark which includes the restaurant chain, has gained over 2.4%. While the larger S&P 500 is off 0.07%.
“If the last few days have shown us anything, it’s how deeply people care about Cracker Barrel. We’re truly grateful for your heartfelt voices,” the company said. “You’ve also shown us that we could’ve done a better job sharing who we are and who we’ll always be” the company said in a statement Monday.
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The company said what has not and “will never change” are the values Cracker Barrel was built on when the Lebanon, Tennessee-based chain first opened in 1969.
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Those values, the statement read, are “hard work, family, and scratch-cooked food made with care.”
Last week, CEO Julie Felss Masino made the rounds promoting the change, including an appearance on ‘Good Morning America’ in which host Michael Strahan asked her what if all the customers are coming at you hard enough about the look of the restaurant, and they want to go back to the old way?”
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She responded with, “Honestly, the feedback’s been overwhelmingly positive, that people like what we’re doing.”
Backlash ensued from customers after the company removed “Uncle Herschel” leaning against a barrel from its longstanding logo, replacing it with a more modern text-only design.
Conservative activist Robby Starbuck called out the company for so-called woke policies and spotlighted board member Gilbert Davila, 61, and his focus on DEI initiatives, as well as his company, DMI Consulting, which promotes DEI projects.
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In response to Starbuck’s allegations, Cracker Barrel told FOX Business:
“Mr. Davila is an expert in multicultural marketing and advertising, with experience including market segmentation, data management and digital marketing. His service as a marketing executive with Fortune 500 companies has provided insights for Cracker Barrel, where we serve around 200 million guests annually across the country.”
Original article source: Cracker Barrel’s loses $143 million in market value after woke brand fiasco
