Once again, I have stumbled upon a new Tattooed Chef SKU by browsing on my Sam's Club app. Interestingly enough, this is the company's fourth breakfast-based offering in a year's time (and fourth overall). It's certainly encouraging to see continued presence in the new category.
About this time last year, the company debuted their plant-based sausage breakfast bowl. It was their very first offering with plant-based sausage and performed well enough in Sam's Club that Costco picked them up for a special 6-pack offering at their clubs. Subsequently, Target has picked up the individual bowls for the mass channel.
Also in 2021, Tattooed Chef introduced a plant-based maple sausage bowl and huevos rancheros bowl via Sam's Club. It appears that Target is picking up the single packs of the huevos rancheros bowl too.
Not much of an update, but until Q4 results are released, I don't expect much to happen with the stock. As with all CPG companies, they have been hit hard by inflation. Specifically, transportation, cold storage, and packaging costs have been up significantly in 2021.
The company recently announced the completion of the acquisition of Belmont Confections. This will allow the company to expand into another new category in 2022: plant-based snack bars.
The company has already disappointed investors with declining revenue and margin guidance throughout 2021. The company's original revenue guidance in June 2020 for 2021 $222 million. It was then increased to $235-244 million and just guided back down to $210-215 million on the Q3 earnings call. What's more discouraging is the decrease in EBITDA from $30 million in June of 2020 to now -$17 million.
We'll see what 2022 holds for the Tattooed Chef. No, one SKU in a new category isn't going to save the share price: continued revenue growth and an increase in gross margins will. Branded Tattooed Chef snack bars from Belmont and branded burritos, chips, and snacks from New Mexico should help.
This blog post represents my opinion and is not financial advice. I am not a financial advisor, just a rocket enthusiast. Always perform your own due diligence and any trades/investments you do is at your own risk. I hold shares of TTCF.
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