Pitch:
– Distributor of pasture-raised eggs – the ethical alternative to factory farms.
The thesis is based on continued growth from more consumers shifting to much more expensive ‘luxury’ eggs.
– Set to grow at 20%-30%.
– Sources from 300 farms and then distributes from a single facility to 21k retail locations.
– Commenter pushback – 1x sales distributor in a competitively challenged end market with a little line of sight to earning more than MSD margins.
Valuation: Trades under 1x sales with longer-term ambitions of double-digit EBITDA margins.
Exp. gain: Not specified.
Full VITL write-up (free guest account required):
https://www.valueinvestorsclub.com/idea/VITAL_FARMS_INC/4809685507