Cracker Barrel shares surge 23% on upbeat sales forecast as logo controversy fades

Cracker Barrel Old Country Store saw a remarkable 23% increase in shares on Wednesday following its surprising second consecutive quarter of profit and an upward revision of its annual targets. This positive momentum indicates that the restaurant chain is successfully moving past the turbulence surrounding its recent logo change.

During a post-earnings call on Tuesday, company executives noted a gradual improvement in store traffic and a favorable response from consumers to the introduction of more value-focused menu items and bundled offerings.

Following criticism from conservatives, including President Trump, for altering its iconic logo featuring “Uncle Herschel,” visits to Cracker Barrel stores initially declined. The company’s new logo, unveiled on August 19, was short-lived, with shares dropping approximately 40% since the logo change.

The company now anticipates revenue between $3.27 billion and $3.30 billion for the year, up from the previous projection of $3.24 billion to $3.27 billion. Wells Fargo upgraded the stock’s rating to “overweight,” citing the positive turnaround.

Adjusted EBITDA is now forecasted to be between $120 million and $125 million, an increase from the previous range of $85 million to $100 million. In the third quarter ended May 1, the company reported an adjusted profit per share of 29 cents, surpassing estimates of a loss of 45 cents per share.

Cracker Barrel’s shares soared by as much as 34.7% to reach a near-nine-month high of $48.91 before closing at $44.49.