Vital Farms Q4 revenue slightly misses estimates; sets $100 mln stock buyback

Overview

• Ethically produced foods firm's Q4 revenue rose 28.7% yr/yr, slightly missing analyst expectations

• Adjusted EBITDA for Q4 missed analyst estimates

• Company authorized $100 mln stock repurchase program

Outlook

• Vital Farms expects fiscal 2026 net revenue of $900 mln to $920 mln

• Company projects fiscal 2026 adjusted EBITDA of $105 mln to $115 mln

• Vital Farms plans fiscal 2026 capital expenditures of $140 mln to $150 mln

Result Drivers

• SUPPLY CHAIN EXPANSION - Vital Farms scaled its supply chain and expanded its farmer network to meet demand, reducing previous supply constraints, per CEO Russell Diez-Canseco

• VOLUME AND PRICE/MIX GROWTH - Q4 revenue growth driven by $27.2 mln in volume-related growth and $20.4 mln from price/mix benefits

• INVESTMENTS IN OPERATIONS - Gross margin decreased slightly due to increased operational costs as part of scaling efforts, partially offset by price/mix benefits

Company press release: ID:nBw4xLLNna

Key Details

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 12 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the food retail & distribution peer group is "buy"

• Wall Street's median 12-month price target for Vital Farms Inc is $48.00, about 93.6% above its February 25 closing price of $24.79

• The stock recently traded at 15 times the next 12-month earnings vs. a P/E of 21 three months ago

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