Rebrand from Hell tanks Cracker Barrel shares

Plus: Elon Musk sues Apple and OpenAI over alleged AI monopoly

Author

Matt Davis
August 26, 2025

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—Matt Davis, Need2Know Chedditor

News You Need2Know

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What’s the stock market up to, eh?

Companies mentioned in today’s newsletter

Rebrand from Hell tanks Cracker Barrel stock

Cracker Barrel’s $CBRL ( ▼ 0.25% ) (checks notes) $700 million rebrand has ignited a firestorm among loyal customers and investors alike. The revamp, which includes redesigned dining spaces, a new menu, and a modernized logo, was meant to give the 56-year-old brand a fresh, updated look.

Instead, they are in some trouble. The stock was down 10% over the last five days. The company is only worth $1.2 billion. You lose that much money; you’ve essentially lost the farm. It’s extraordinary. It’s also turning into a Rorschach blot about American identity politics. Even Donald Trump, Jr. weighed in on Twitter asking:

“WTF is wrong with Cracker Barrel?”

The new logo, unveiled last Tuesday, ditches the iconic illustration of a (white) man resting his arm on a wooden barrel that embodied Cracker Barrel’s Southern hospitality. While the brand emphasized that the updated design retains its “signature gold and brown tones” and took inspiration from staples like “farm fresh scrambled eggs and buttermilk biscuits,” many say the changes stray too far from the nostalgic charm that made the chain beloved.

Nostalgia indeed. According to the New York Times, the chain introduced a policy in 1991 that said that employing people “whose sexual preference fails to demonstrate normal heterosexual values which have been the foundation of families in our society” went against its core values. The policy led to the company firing some L.G.B.T.Q. employees before it…reversed course. Right now there seem to be no plans to U-turn on this latest PR and marketing disaster, which the firm has attributed to a “vocal minority” of critics. Attacking “minorities” again, eh, folks? It’s just not smart.

Richard Stern, director of the Thomas A. Roe Institute for Economic Policy at the right-leaning Heritage Foundation, criticized the rebrand, saying, “Like Bud Light $BUD ( ▼ 1.28% )  or New Coke $COKE ( ▼ 2.23% )  this is yet another example of how abandoning your brand and loyal customers is not the way to grow a business.” Stern added that Cracker Barrel has long struggled with thin profit margins, around 1.5%, significantly lower than successful competitors.

My sense is they’ll see how it goes for another three weeks, and if the stock price comes back up, they’ll let it ride. If it snowballs from here they’ll fire the CEO and change all the stores back to the old aesthetic. Weigh in, in today’s poll! 👇🏻

Song of the day: Ami Taf Ra, ‘How I Became A Madman.’

I love this song because it features jazz instrumentalist Kamasi Washington, who as we all know, soundtracked the last-ever episode of the television show, “Homeland.” If you’ve not seen the entirety of “Homeland,” it’s unlikely we’ll have much to talk about.

Still. Ami Taf Ra is an L.A.-based North African singer whose debut album "The Prophet And The Madman” is inspired by Lebanese-American writer Khalil Gibran’s seminal work “The Prophet“. With “soaring arrangements and entrancing emotional arcs,” the track captures the tension between inner chaos and clarity, apparently. In other words it’s a lot like this newsletter.

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Learn from this investor’s $100m mistake

In 2010, a Grammy-winning artist passed on investing $200K in an emerging real estate disruptor. That stake could be worth $100+ million today.

One year later, another real estate disruptor, Zillow, went public. This time, everyday investors had regrets, missing pre-IPO gains.

Now, a new real estate innovator, Pacaso – founded by a former Zillow exec – is disrupting a $1.3T market. And unlike the others, you can invest in Pacaso as a private company.

Pacaso’s co-ownership model has generated $1B+ in luxury home sales and service fees, earned $110M+ in gross profits to date, and received backing from the same VCs behind Uber, Venmo, and eBay. They even reserved the Nasdaq ticker PCSO.

Paid advertisement for Pacaso’s Regulation A offering. Read the offering circular at invest.pacaso.com. Reserving a ticker symbol is not a guarantee that the company will go public. Listing on the NASDAQ is subject to approvals.

*This counts as journalism, right?

Elon Musk sues Apple and OpenAI for allegedly stifling AI competition

Elon Musk has filed an antitrust lawsuit targeting Apple $AAPL ( ▼ 0.26% ) and OpenAI $OPENAI ( 0.0% ) . The 61-page complaint, filed in Texas federal court, accuses the tech giants of conspiring to stifle competition in the rapidly evolving AI industry. By favoring OpenAI’s ChatGPT in the iPhone app store rankings, Musk alleges that Apple's actions unfairly harm competitors like his xAI’s Grok chatbot.

Grok recently rebranded itself to “MechaHitler,” you’ll remember…

“This is a tale of two monopolists joining forces to ensure their continued dominance in a world rapidly driven by the most powerful technology humanity has ever created: artificial intelligence,” the lawsuit asserts. Musk also claims that Apple views AI as an "existential threat" to its iPhone franchise, prompting the company to partner exclusively with OpenAI.

The lawsuit raises concerns over anticompetitive practices, arguing that Apple’s and OpenAI’s collaboration provides them with an unfair advantage. OpenAI, for its part, dismissed the claims as harassment, saying, “This latest filing is consistent with Mr. Musk’s ongoing pattern of harassment.” Apple has not yet commented.

Today on the ‘gram: $100 chicken nuggets

Post of the day: The kidz are still skeptical of the donkeyz

Quote of the Day

❝

Three in four young Americans have never owned crypto.

What’s up with Gen Z investors?


Gen Z's approach to investing is often stereotyped, but recent research from Vanguard's $VGT ( ▼ 0.24% ) head of behavioral economics, Andy Reid, reveals a far more nuanced picture. Contrary to popular belief, most young investors aren't overly confident or thrill-seeking and day-trading meme stocks, for example.

One pervasive myth is that Gen Z is "simply overconfident," with each individual believing they're "the next Warren Buffett." However, Reid's research shows that "about 63% of young investors don't think they could beat the market, and nearly half of them don't even consider themselves investors at all." This suggests a need for a "boost of confidence" rather than reining in excessive risk.

Another common misconception is that "young investors are all sort of risk seeking, thrill seeking." While some undoubtedly engage in risky bets, Reid clarifies that "most of them are not using options in margin trading. And about three quarters of young investors are not willing to accept higher than average risk for higher returns." In fact, a significant blind spot is the "unintentional cash hoarding" seen in young IRA investors, with "about 14% of their portfolio sitting in cash" due to inertia or a lack of awareness. This "significant blind spot" can cost them "potentially six figures in foregone wealth in retirement."

Social media, while democratizing financial discussions, can also distort perceptions. Reid notes a "gap...between sort of what the reality is on social media versus the reality in the evidence and the data." He highlights that "three in four young Americans have never owned crypto," a stark contrast to what social media might suggest.

Ultimately, Gen Z's "superpower is time." Reid advises young investors to "really take stock and check up on their portfolio" and be mindful of cash sitting in low-interest accounts. He emphasizes that "investing is highly personal, but it doesn't have to be a solo sport," underscoring the importance of a trusted financial partner to illuminate blind spots.

Should you check your 401(k) today?

👎️ 

Nope.

Love it or hate it, crypto is at record highs

Bitcoin's $BTC.X ( ▼ 1.17% ) recent surge to new all-time highs has ignited significant market enthusiasm among both retail and institutional investors. Patrick Liu at crypto exchange Gemini $GEMINI.X ( ▼ 10.37% ) sheds light on the forces behind the rally, pointing to robust demand from two primary sources: digital asset treasuries and ETFs.

Liu notes that "many companies in the market [are] buying and accumulating Bitcoin onto their balance sheets," with an estimated "$8 billion in the pipeline of capital year marked for future Bitcoin purchases." Ethereum $ETH.X ( ▼ 4.05% ) is also experiencing a similar trend, with 1.26 million ETH purchased by digital asset treasuries and another "$2.7 billion of demand in the pipeline."

The approval of Bitcoin ETFs in the U.S. last January has been "one of the most successful product[s] in ETF history," with Bitcoin ETFs seeing inflows of "$3.4 billion" in July 2025. Interestingly, Ethereum ETFs "registered $5.4 billion in net inflows," marking the first time ETH ETF inflows surpassed Bitcoin. Liu also highlights the growing interest from "clearing houses, wealth management firms, and financial advisors" who are looking to roll out these products to their clients, with some even recommending 1% to 5% allocations in portfolios.

About 15% of N2K readers own bitcoin, according to a recent poll we ran, but that number appears set to trend up.

Tesla under federal investigation for failing to report crash data

My father-in-law is buying a Tesla off his buddy Paige next week for $22,000. There’s a good chance I’ll get to drive it as long as I stay on Mike’s good side. What are the odds?

Meanwhile, Tesla $TSLA ( ▲ 1.94% ) is under scrutiny from the National Highway Traffic Safety Administration (NHTSA) for reportedly failing to comply with crash reporting rules related to its self-driving technology. According to the NHTSA, Tesla has repeatedly submitted reports about crashes involving its driver assistance systems several months late, far exceeding the five-day deadline required by federal regulations.

The investigation comes as Tesla expands its self-driving taxi services in Austin, TX, with ambitions to extend the offering nationwide. The company's plans to release over-the-air updates enabling fully autonomous driving in millions of existing Teslas have captivated investors.

The NHTSA explained that the probe will investigate why Tesla delayed its reports, whether the reports included all necessary details, and whether additional unreported incidents exist. Tesla reportedly told the agency that the delays were "due to an issue with Tesla's data collection," which the company says has now been resolved.

Poll of the Day: Rolling back the barrel?

Do you think Cracker Barrel should roll back its $700 million rebrand?

Login or Subscribe to participate in polls.

Poll of the Day: You’re off the shrimp for a bit

We asked: Are you concerned about radioactive shrimp?

You answered:

🟩🟩🟩🟩🟩🟩 Yes, I think I might steer clear of shrimp for a little while. (224 votes)

🟨🟨🟨🟨⬜️⬜️ Very! I've seen what toxic waste does to turtles, and we have enough ninjas running around already.. (164)

🟨🟨🟨⬜️⬜️⬜️ Nope. Next thing you know, you'll be telling me cigarettes are dangerous, too! (103)

491 Votes via @beehiiv polls

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