Cracker Barrel Old Country Store Inc. faced a significant decline in its stock on Thursday, following a conservative backlash against the restaurant chain's recent logo change. Shares of the popular Southern-style dining establishment fell as much as 15 percent during the day, driven by a surge of negative posts on social media, including one from Donald Trump Jr. after the previous market close. The stock ultimately ended the session down 7.2 percent, marking the fifth consecutive day of losses.

The decline came after Cracker Barrel announced on Tuesday that it would remove the image of an old man leaning against a barrel from its logo, retaining only the name "Cracker Barrel." Critics, particularly from conservative circles, viewed this decision as an effort by corporate leaders to erase the chain's history and character. The fact that the CEO, Julie Felss Masino, is a woman further fueled the outrage among some groups.

Despite the backlash, Michael Halen, a senior analyst at Bloomberg Intelligence, does not anticipate a prolonged negative impact on the company. He predicts that Cracker Barrel's same-store sales growth for the fiscal fourth quarter could exceed the consensus estimate of 3.5 percent. "Love or hate Cracker Barrel’s logo, sales may outperform," Halen stated. The company is set to release its financial results in mid-September, with analysts expecting a third consecutive year of declines in adjusted earnings per share.

This incident is not the first time Cracker Barrel has faced controversy over its logo. In early 2021, a redesign sparked debate on social media regarding whether it resembled a slaveholder’s whip. At that time, the company clarified that the logo "does not depict and has never depicted a whip" and emphasized its rejection of racism and discrimination.

The latest logo change, which removed Uncle Herschel, has drawn criticism labeled as "woke" across the internet. Cracker Barrel described the new logo as a return to its roots, stating it is designed to work across digital platforms as well as traditional advertising formats. "This fifth evolution of the brand’s logo is rooted even more in the iconic barrel shape and word mark that started it all back in 1969," the company said in an emailed statement.

The influence of social media on stock movements has become increasingly evident, as it allows users to express their opinions widely. Steve Sosnick of Interactive Brokers noted that Cracker Barrel is considered an "anti-meme" stock, suggesting that the social media backlash is resonating with a significant portion of its customer base. He compared the situation to American Eagle Outfitters Inc., which saw a surge in its stock price earlier this month after President Trump praised its advertising featuring actress Sydney Sweeney. "If Sydney Sweeney can get American Eagle Outfitters moving up because of a viral ad campaign, then why can’t a conservative backlash do the opposite to Cracker Barrel?" Sosnick asked.