Cracker Barrel’s Shift Sparks Controversy as Stock Takes a Dive

Recent reports indicate that Cracker Barrel, the popular chain restaurant, is experiencing financial fallout after adopting a stance on social issues that has sparked criticism from its conservative customer base. Traditionally appealing to rural, conservative communities, Cracker Barrel’s recent actions have left many long-time patrons feeling alienated.

In the past few years, Cracker Barrel has drawn controversy for supporting LGBTQ causes. This shift, along with the company’s decision to cut its dividend and pursue a new strategic direction, has led to a significant drop in its stock. Many critics are urging the restaurant chain to move away from political messaging and refocus on its core business.

Will Tanner, co-founder and editor of @TAmTrib, weighed in on Cracker Barrel’s financial troubles. “Cracker Barrel and its California CEO went woke, pushing ‘Pride’ stuff on the country, conservative demographic, and now its stock is nosediving,” Tanner wrote on X, echoing the sentiment that “Go Woke, Go Broke” may be applicable in this case.

Investopedia also commented on the stock decline, noting that shares dropped after Cracker Barrel slashed its dividend and announced a “strategic transformation plan,” lowering its financial outlook.

The backlash isn’t new. Last year, The American Tribune reported on customer outrage after Cracker Barrel publicly supported LGBTQ causes, a stance many felt was at odds with the brand’s family-oriented, conservative appeal. Some warned that Cracker Barrel risked becoming the “next Bud Light” in terms of customer rejection.

One particularly controversial moment came when Cracker Barrel posted on Instagram and Facebook during Pride Month, showcasing rainbow-themed rocking chairs with the caption, “We are excited to celebrate Pride Month with our employees and guests. Everyone is always welcome at our table (and our rocker). Happy Pride!”

The posts ignited a wave of criticism, with some customers vowing to boycott the restaurant. Comments such as “Cracker Barrel just made my boycott list!” and “Another one bites the dust…” reflected the frustration, while others questioned the necessity of the message, saying, “Can we not just eat food?”

The Texas Family Project also criticized the restaurant, stating, “We take no pleasure in reporting that @CrackerBarrel has fallen. A once family-friendly establishment has caved to the mob.” Screenshots shared by the group highlighted Cracker Barrel’s initiatives to support Pride and diversity, equity, and inclusion (DEI) efforts, including a message from the chain that read, “In the Cracker Barrel spirit of hospitality and belonging, we call it ‘bringing the front porch to Pride.’”

The company’s shift has drawn a line between its supporters and detractors, with financial consequences now becoming a tangible result of its controversial decisions.