Cracker Barrel CEO Masino admits in 4th quarter earnings call they underestimated customer connection to iconic logo

Cracker Barrel on Wednesday released its fourth quarter earnings results, but much of the attention centered on the restaurant chain’s swift reversal of its controversial logo redesign that went viral online.The company — based out of Lebanon, Tennessee — reported total revenue of $868 million, down 2.9% from the same quarter last year.The company also said that traffic has fallen 8% since the August rollout of its simplified, text-only logo.

Shares tumbled nearly 10% in after-hours trading on Wednesday. On the earnings call, President and CEO Julie Masino acknowledged that Cracker Barrel had underestimated the deep connection customers feel toward the company’s nostalgic imagery.“We want longtime fans and new guests to experience the full story of the people, places, and food that make Cracker Barrel so special,” Masino told investors.“That’s why our team pivoted quickly to switch back to our old-timer logo and has already begun executing new marketing, advertising and social media initiatives leaning into Uncle Herschel and the nostalgia around the brand.”In addition to the logo reversal, Masino noted that Cracker Barrel has begun converting its four modernized test stores back to traditional interiors. Cracker Barrel revealed earlier this month that only four of its 660 restaurants have undergone remodels and confirmed that the project will not move forward.

The updated design replaced the brand’s signature Americana décor with a sleek, minimalist look.“The feedback we received from our guests in recent weeks on our brand refresh and store remodels has shown us just how deeply people care about Cracker Barrel,” Masino said, adding that new marketing will lean in to Uncle Herschel and the brand’s nostalgia.“We thank our guests for sharing their voices and love for the brand and telling us when we’ve misstepped.”However, Masino argued that the chain, which has 70,000 employees, has not kept pace as consumer habits — wh...