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Cracker Barrel's new logo has caused a big stir—and a steep drop in the company's value.

On Thursday, the popular Southern-style restaurant chain saw its stock price fall sharply after unveiling a fresh logo design, wiping out nearly $100 million in market value.

Shares of Cracker Barrel dropped $4.22, or 7.2%, closing at $54.80. Earlier in the day, the stock hit a low of $50.27, which meant the company lost almost $200 million in market value during trading.

This sudden decline surprised many, as it's rare for a logo change alone to impact a company's shares so dramatically.

The new logo removes the old drawing of a man wearing overalls and leaning against a barrel—a symbol that has been part of Cracker Barrel's identity since 1977.

Instead, the updated logo features a simpler design, focusing only on the chain's name. According to Cracker Barrel, the original logo symbolized "the old country store experience where folks would gather around and share stories."

According to CBS News, the company said the familiar figure, known as "Uncle Herschel," will still be featured inside restaurants and on menus, emphasizing that "our values haven't changed."

Cracker Barrel's CEO, Julie Felss Masino, has been leading a larger makeover of the brand. She acknowledged last year that the chain was "not as relevant as we once were," prompting changes to the menu, restaurant decor, and marketing efforts.

The company hopes these updates will attract new customers while keeping loyal fans engaged.

Cracker Barrel Remodel Sparks Mixed Reactions on Social Media

However, the logo change has sparked criticism from some longtime fans and marketing experts.

Bolt Health founder Kevin Dahlstrom called the redesign a "fiasco," saying, "When you have that kind of strong brand, you NEVER EVER abandon it, you only double down on it." Conservative voices also voiced displeasure, with some calling the new logo "more generic."

Social media reaction has been mixed. Many users expressed sadness over losing a piece of tradition, while others questioned the direction of the company's new modern look.

The remodels of Cracker Barrel's over 660 locations include lighter interiors and fewer country-themed decorations, marking a clear shift from its classic, rustic feel, CNN said.

Marketing expert Anjali Bal warned that the change "risks diluting the brand's uniqueness" and could upset longtime customers, even as it might attract curious new diners.

She noted, "The challenge is ensuring that modernization doesn't come at the expense of brand recognition or emotional connection."

Despite the backlash, Masino told ABC News that "people like what we're doing" and that the feedback has been "overwhelmingly positive." Still, the stock market's reaction shows the makeover is a gamble that might take time to pay off.