Cracker Barrel shed nearly $200 million in market worth after its inventory plunged Thursday following the discharge of a brand new emblem. The brand new design eliminates a longstanding drawing of an overall-clad man leaning in opposition to a barrel, in favor of a cleaner emblem that includes simply the chain’s title.

Shares of Cracker Barrel fell as a lot as $8.74, or nearly 15%, in Thursday buying and selling, shaving as a lot as $194.6 million from the corporate’s market worth. The inventory regained some floor in early afternoon buying and selling, with shares down $8.19, or 13.9%, to $50.84. 

Wall Road’s response to the emblem redesign comes as Cracker Barrel has been working to refresh its picture by means of new menu objects and redecorated shops that eschew the 55-year-old chain’s old-timey method in favor of a extra fashionable look. 

In keeping with the corporate’s web site, the person and barrel within the outdated emblem represented “the outdated nation retailer expertise the place of us would collect round and share tales.”

It is uncommon for a corporation’s share worth to plunge dramatically on account of a emblem redesign, though advertising missteps could cause traders to query an organization’ technique. Cracker Barrel’s overhaul has been overseen by CEO Julie Felss Masino, who final 12 months described the chain as “not as related as we as soon as had been,” and introduced plans to replace its down-home menu.

In an announcement to CBS Information, Cracker Barrel stated that the person portrayed within the emblem, often known as “Uncle Herschel,” will stay “entrance and heart in our eating places and on our menu.”

“Our values have not modified, and the guts and soul of Cracker Barrel have not modified,” the corporate stated. 

The brand new emblem, which is able to seem on menus and advertising supplies, “is now rooted much more intently to the enduring barrel form and wordmark that began all of it,” the corporate stated in an Aug. 18 press launch.  

Conservative commentators took challenge with the rebrand, with right-wing podcaster Matt Walsh calling it “extra generic” on social media. Advertising consultants additionally criticized the corporate’s overhaul. Bolt Well being founder Kevin Dahlstrom, who has served as a chief advertising officer at a number of corporations within the monetary trade, described Crack Barrel’s rebrand as a “fiasco.”

“The holy grail of promoting is to create a model that clients give a rattling about — and really feel some possession of. It is exceedingly uncommon and when you may have that — as Cracker Barrel did — you NEVER EVER abandon it, you solely double down on it,” Dahlstrom wrote on social media.