Brand Strategy And Business Performance: How Does Logo Changes Affect Sales And Stock Prices?

Branding strategy influences business performance significantly. This paper investigates how logo changes affect the sales and stock price. Previous research has focused on the importance of logo design. However, none have analyzed empirical data on actual companies that can be utilized to further interpret the real-world implications of existing restaurant brands. A quantitative, statistical analysis employing an ANOVA, Mann-Kendall, and a correlational test was conducted to determine whether a logo change had a particularly significant change, trend, and pattern on a restaurant brand’s stock price and revenue sales. Furthermore, company logos were categorized between logotypes (text) and combination marks (symbolism and text) to determine whether different types of logos have alternative effects. Results showed that a logo redesign didn’t have a significant effect on the stock price. However, there was a significant change in revenue sales after a logo change for certain companies after ~1-2 years with logotypes typically having more success.