Investor Kevin O’Leary believes the recent controversy surrounding Cracker Barrel Old Country Store Inc. (NASDAQ:CBRL) can shift the company’s fortunes for the better.
‘They Get No Press At All’
On Wednesday, in a post on X, the “Shark Tank” investor framed the restaurant chain’s sudden reemergence in the collective spotlight, due to its rebranding efforts last week, as the perfect example of how all press can, at times, be good press, provided that companies know how to take advantage of it.
Sharing a snippet of his recent appearance on Fox News’ Gutfeld, O’Leary says, “The last time you ever saw Cracker Barrel anywhere in the press room or social media was 250 years ago,” adding that “they get no press at all.”
“This company got Bud Lighted,” O’Leary says, comparing its media backlash to the one faced by Anheuser-Busch Inbev SA (NYSE:BUD) and its Bud Light in 2023.
However, O'Leary calls the company “extremely lucky,” adding that the unexpected controversy may have a silver lining, helping generate much-needed public curiosity. “And now, people are saying, ‘Cracker Barrel. What the hell is that? Well, I'm gonna go check that out,'” he said.
“The free press was outstanding,” O’Leary says, referring to the discussions and screen time that the company has been receiving over the past week.
‘Make Cracker Barrel Great Again’
President Donald Trump weighed in on the issue early this week, with a post on Truth Social saying, “Cracker Barrel should go back to the old logo, admit a mistake based on customer response (the ultimate Poll), and manage the company better than ever before.”
Trump echoed O’Leary’s views on the attention that the company has since received, calling it “a billion dollars worth of free publicity,” adding that it was now a “great opportunity” for the restaurant chain.
The Republican Party’s X account later shared Trump’s post saying, “Make Cracker Barrel Great Again.”
Cracker Barrel shares were up 8% on Wednesday, closing at $62.33, after the company announced that it was scrapping its rebranding initiative in favor of its original logo.
The stock is up another 0.27% in overnight trade. The stock scores high on Momentum and Value in Benzinga’s Edge Stock Rankings, with a favorable price trend in the medium and long terms. Click here for deeper insights into the stock, and to see how it compares with peers and competitors.
Photo Courtesy: Kathy Hutchins on Shutterstock.com
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