In case you missed it, we made our list and checked it twice to compile Brand Federation’s annual Naughty & Nice List – a look back at the brands that caught their attention in both negative and positive ways in 2025.
For those on our naughty list, they found there’s a very narrow margin for error. These brands provide a model for other brands in that if you’re not careful in making heat-of-the-moment decisions, you’re going to be in trouble. In 2025 (and likely beyond), brands have dealt with a deeply divided audience based on political beliefs and trends. It’s an unprecedented challenge, but those who are thriving are making connections internally with their own people and externally with their core audiences.
Now, without further ado, the 2025 Naughty and Nice List.
Cracker Barrel’s CEO spent an August morning in studio at Good Morning America cheerfully unveiling the eatery’s new logo and redesigned interiors. The criticism came fast and furious, magnified by the country’s polarized and politicized environment. While the company was shooting for simplicity by streamlining its iconic logo, it ended up shooting itself in the foot by frustrating its ardent fans. After a little more than a week, Cracker Barrel served up a Mea culpa and said the old logo would still be used and the interior redesigns would be halted. The business lost more than $100 million in market at the time, and its stock price, which topped $60 per share at times in August, started December down by more than half at under $29.
In July, American Eagle released a series of ads starring actress Sydney Sweeney, one of which sparked concerns that it promoted eugenics with the play on words of genes and jeans. The ads generated unprecedented amounts of coverage, buzz and impressions for American Eagle – and its sales and stock price both saw a significant bump in the months after the campaign. But the question will be if the brand can sustain the success, and how much did it alienate the general public?
America’s eighth-largest retailer kicked off 2025 by scaling back or eliminating many of its DEI programs. What followed included waves of boycotts, slumping sales, falling stock prices and, ultimately, a change in leadership. While Target has been in neutral in many respects, its decision to cut back on DEI efforts – a year after limiting Pride Month merchandise – appears to have put the brand in reverse. As of the start of December, Target is expecting a low single-digit sales decline, and its stock price is down by a third.
The slogan “Bags Fly Free” became synonymous with Southwest Airlines. Early in the year, it announced it was ending the policy as it tried to increase earnings. It also decided to end its unassigned seating policy, also looking to earn more revenue through passengers selecting their seats or choosing premium options. Southwest, known for being different from other airlines and for its passionate fan base, put decades of brand goodwill at risk. So far, revenue hasn’t been affected – the company posted a record third-quarter operating revenue.
Meta has shown AI can be an asset in many ways, but it also showed this year some applications have a long way to go. Its chatbots came under fire from leading children’s advocacy groups for having no guardrails on inappropriate content, and an elderly man was lured to an address by a chatbot and sadly suffered a heart attack while on the way and passed away a few days later. And at Meta Connect, Mark Zuckerberg’s demonstrations of its AI-powered smart glasses failed in spectacular fashion, even as the technology has received positive reviews.
While Southwest was making changes to its traditions, Delta unveiled a new strategy to position itself as a premium airline experience. Focusing on lifestyle, it has begun to give its planes a new luxury look, complete with new fabrics and colors. Personalization and customization are designed to give customers, including its most loyal customers, more choice. Early returns are promising, as Delta enjoyed a record revenue in the third quarter, an increase of 4% over last year’s third quarter.
Starbucks is looking to the past to inform its future with its “Back to Starbucks” rebrand, which strives to reconnect with its customers. New CEO Brian Niccol envisions Starbucks returning to the days of being welcoming coffeehouses with terrific coffee with skilled and friendly baristas, many of whom are writing nice messages on customers’ cups. It also began incorporating “The Starbucks Coffee Company” into some of its advertising to remind consumers what made it famous in the first place. Starbucks just announced its Holiday Launch was the biggest sales day ever in North America, and its Reusable Red Cup Day was the best in company history.
When its CEO was caught on a kiss-cam at a Coldplay concert with his colleague rather than his wife, Astronomer responded to one of 2025’s most viral moments with a smart and savvy moment of its own. Mere days after the viral moment, it enlisted Gwyneth Paltrow– former wife of Coldplay lead singer Chris Martin – to shoot a video answering to address the new-found interest in the company. Astronomer used the crisis to educate the public on its many attributes by using creativity and humor.
Duolingo killed off its famous owl. Kind of. In early February, the company announced its mascot had been killed, probably dying “waiting for you to do your lesson.” Aday later, it revealed Duo had been run down by a Tesla Cybertruck and said that completing lessons on the language app could bring Duo back to life. Two weeks after the initial announcement, fans learned Duo had faked his death. While its stock has taken a huge hit since June (from $526 per share to less than$200 per share), third-quarter revenue increased 41% year over year, and paid subscribers are at an all-time high.
