Topic: How To Invest

Q: Pat, Goodfood (TSE – FOOD)—I recently purchased their shares after trying their meal kits for several months. The dinner meal kits are pricey, but the quality of their ingredients is excellent. Recently, they launched their smoothies product line and after trying those (costs $5 per smoothie and they are excellent), I am convinced that this company is destined for success. I have not yet gone through their financials and their management discussion and analysis (MD&A). Still, I’d like to hear your thoughts.

Article Excerpt

A: Goodfood Market Corp., $2.90, symbol FOOD on Toronto (Shares outstanding: 58.1 million; Market cap: $175.5 million; www.makegoodfood.ca), is a Canadian meal kit company. It aims to deliver fresh ingredients and recipes that make it easy for subscribers to prepare meals at home every week. The company began trading on the Toronto exchange in June 2017 at $2.50 a share. Goodfood’s subscribers select their favourite recipes online from a variety of its original dishes. The company then prepares a personalized box of fresh ingredients and delivers it to the subscriber’s doorstep with easy step-by-step instructions. Headquartered in Montreal, Goodfood had 189,000 active subscribers as of May 31, 2019, up 148.7% from 76,000 a year earlier. The increase in subscribers was mainly attributable to the company’s marketing efforts, as well as new menu options and its Western Canada expansion. In the three months ended May 31, 2019, revenue rose 124.4%, to $49.9 million from $22.2 million. The increase came from continued growth in active subscribers and…

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