Cracker Barrel’s Brand Controversy and Aging Demographic Lead to Sell Rating

In a report released yesterday, Jon Tower from Citi maintained a Sell rating on Cracker Barrel, with a price target of $45.00.

Jon Tower’s rating is based on a combination of factors, primarily focusing on Cracker Barrel’s recent brand refresh controversy and its implications. The company faced significant backlash over its decision to change its logo, leading to a reversal of the decision after customer outcry. While this incident has increased public attention towards the brand, it highlights underlying issues such as low consumer awareness compared to its competitors and an aging customer demographic.
Despite the surge in interest, there are concerns about the brand’s ability to maintain relevance with younger consumers, which is crucial for long-term growth. The expected share price return of -22.0% further underscores the challenges Cracker Barrel faces in adapting to market demands and evolving consumer preferences. These factors collectively contribute to Jon Tower’s decision to issue a Sell rating for the stock.