Topic: How To Invest

Q: Pat, what do you think of new IPO Vital Farms on Nasdaq? Thanks.

Article Excerpt

A: Vital Farms Inc., $24.60, symbol VITL on Nasdaq (Shares outstanding: 39.6 million; Market cap: $969.5 million; www.vitalfarms.com), offers a range of ethically produced pasture-raised foods. Started on a single farm in Austin, Texas, in 2007, Vital Farms is now a U.S.-wide consumer brand that works with over 200 small family farms. The company is the industry leader in pasture-raised eggs, holding more than 80% of the U.S. market by revenue. Vital Farms estimates that over 5 million households purchased its eggs in 2020—that equals 3.9% household penetration. The company’s other products include hard-boiled eggs, ghee (clarified butter used in South Asian cooking), Egg Bites (individual serving-size scrambled eggs and seasonings), and liquid whole eggs. In the past six years, the number of stores carrying the company’s products has increased from 4,233 in 2015 to over 16,000 in 2020. At the same time, revenues have risen 215.5%, from $44.6 million in 2015 to $214.3 million in 2020. In the three months ended December…