Financial Performance - The company reported net revenue of $606.3 million for fiscal 2024, up from $471.9 million in fiscal 2023, representing a year-over-year increase of approximately 28.3%[342]. - Net income for fiscal 2024 was $53.4 million, compared to $25.6 million in fiscal 2023, indicating a growth of 108.6%[342]. - Adjusted EBITDA for fiscal 2024 was $86.7 million, up from $48.3 million in fiscal 2023, reflecting a significant increase of 79.6%[342]. - Gross profit for fiscal year 2024 was $229.9 million, a 42% increase from $162.3 million in fiscal year 2023, with a gross margin improvement from 34% to 38%[372]. - Selling, general and administrative expenses rose to $133.9 million, a 32% increase from $101.7 million in fiscal year 2023, maintaining 22% of net revenue[373]. - Shipping and distribution expenses increased by $5.1 million or 19%, totaling $32.4 million in fiscal year 2024[374]. - The income tax provision increased by $7.5 million or 113%, totaling $14.2 million in fiscal year 2024, driven by higher net income before taxes[379]. - Interest income increased by $2.7 million or 106%, reaching $5.2 million in fiscal year 2024, primarily due to higher interest on available-for-sale securities[377]. - Cash provided by operating activities increased to $64.8 million for the fiscal year ended December 29, 2024, compared to $50.9 million for the fiscal year ended December 31, 2023, marking a 27.4% increase[398]. - Net income for the fiscal year ended December 29, 2024, was $53.4 million, up from $25.6 million in the previous year, representing a 109.5% increase[389]. Growth and Expansion Plans - The company plans to open a second egg washing and packing facility in Seymour, Indiana, expected to be operational by 2027, to support continued supply and growth[339]. - The company purchased approximately 1,040 acres of farmland in Indiana for $7.5 million to develop "accelerator farms" for learning and development within its farm network[340]. - The company plans to continue investing in innovation to expand its product offerings, particularly in eggs and egg-related products, which generated approximately 96% of net revenue in fiscal 2024[358]. - The company anticipates incremental costs of $7.0 million to $10.0 million in fiscal 2025 due to ongoing elevated construction costs associated with new farms[336]. - The company expects cost of goods sold to increase in the future due to the development of a new egg washing and packing facility in Indiana[363]. - The company plans to install an additional Moba egg grading system at its facility in Missouri, expecting capital expenditures of approximately $12.0 million to $16.0 million in the next 12 months[393]. - The company expects to incur approximately $20.0 million to $30.0 million in capital expenditures related to the development of accelerator farms over the next 12 months[393]. Market Presence - The company has a household penetration rate of approximately 9.2% for its shell eggs, compared to 97% for the overall shell egg category, indicating substantial growth potential[352]. - Whole Foods accounted for approximately 23% of the company's retail sales for both fiscal years ended December 29, 2024, and December 31, 2023[353]. - The company has approximately 24,000 stores selling its products as of December 2024, with expectations for the retail channel to remain the largest source of net revenue[355]. Financial Position and Liquidity - The company maintains cash, cash equivalents, and marketable securities of $160.3 million as of December 29, 2024, ensuring sufficient liquidity for long-term growth investments[347]. - As of December 29, 2024, the company had cash and cash equivalents totaling $150.6 million and investments in available-for-sale securities amounting to $9.7 million[417]. - The effective maturity of the company's investment securities available for sale was approximately 3 months, with a composite credit rating of Aa2 on the Moody's rating scale[417]. - The company does not engage in trading or speculative investments and has not utilized any derivative financial instruments to manage interest rate risk exposure during the fiscal year ended December 29, 2024[418]. - A hypothetical 10% change in interest rates is not expected to have a material effect on the company's results of operations or financial condition for the fiscal year ended December 29, 2024[416]. - The JPMorgan Credit Facility provides a five-year, $60.0 million revolving credit facility, which replaced the previous PNC Credit Facility[394]. - As of December 29, 2024, there was no outstanding balance under the JPMorgan Credit Facility, and the company was in compliance with all covenants[396]. Cost Management - A hypothetical 10% increase in the weighted-average cost of feed ingredients would have resulted in an increase to cost of goods sold of approximately $11.1 million for the fiscal year ended December 29, 2024[414]. - The company anticipates incurring approximately $8.0 million to $11.0 million in capital expenditures for a new egg washing and packing facility in the next 12 months[393].

Financial Performance - Fiscal Year 2024 Net Revenue reached $606.3 million, a 28.5% increase compared to Fiscal Year 2023[1] - Fourth Quarter Net Revenue increased 22.2% to $166.0 million, driven by volume-related growth and price/mix benefits[4] - Adjusted EBITDA for Fiscal Year 2024 was $86.7 million, representing a growth of 79.6% from $48.3 million in Fiscal Year 2023[16] - Net Income for Fiscal Year 2024 grew 108.8% to $53.4 million, compared to $25.6 million in Fiscal Year 2023[14] - Net revenue for the 13 weeks ended December 29, 2024, was $165,989,000, representing a 22.2% increase from $135,811,000 for the same period in 2023[31] - Gross profit for the 52 weeks ended December 29, 2024, was $229,926,000, up 41.6% from $162,326,000 in 2023[31] - Net income for the 52 weeks ended December 29, 2024, was $53,388,000, compared to $25,566,000 in 2023, reflecting a 108.5% increase[34] - Basic net income per share increased to $1.25 for the 52 weeks ended December 29, 2024, from $0.62 in 2023[31] - Net income for the 13-week period ended December 29, 2024, was $10,582,000, compared to $7,210,000 for the 14-week period ended December 31, 2023, representing an increase of 47.5%[43] - Adjusted EBITDA for the 13-week period was $19,086,000, up from $13,894,000 in the previous year, reflecting a growth of 37.5%[43] - Net revenue for the 13-week period reached $165,989,000, compared to $135,811,000 in the prior year, indicating a year-over-year increase of 22.2%[43] Growth Projections - FY 2025 Outlook projects Net Revenue of at least $740 million, indicating at least 22% growth versus FY 2024[22] - FY 2025 Adjusted EBITDA is expected to be at least $100 million, reflecting at least 15% growth compared to FY 2024[22] - The company aims to reach a $1 billion Net Revenue target by 2027[1] Operational Metrics - Gross Margin expanded 352 basis points to 37.9% in Fiscal Year 2024, compared to 34.4% in the prior year[13] - Total assets grew to $359,332,000 as of December 29, 2024, from $275,178,000 as of December 31, 2023, marking a 30.6% increase[33] - Cash and cash equivalents at the end of the period were $150,601,000, up from $84,149,000 at the beginning of the period, indicating a significant liquidity improvement[36] - The company reported a total operating expense of $166,374,000 for the 52 weeks ended December 29, 2024, compared to $129,072,000 in 2023, reflecting a 29% increase[31] - The company’s total liabilities increased to $90,030,000 as of December 29, 2024, from $82,501,000 in 2023, indicating a rise in financial obligations[33] Capital Expenditures and Investments - Capital expenditures for FY 2024 totaled $28.6 million, significantly higher than $11.5 million in FY 2023[19] - The company added approximately 125 new family farms, bringing the total to over 425 by the end of 2024[2] Future Reporting - The company anticipates filing its Annual Report on Form 10-K for the fiscal year ended December 29, 2024, on February 27, 2025, which will provide further insights into future performance and strategies[28] Expense and Income Analysis - Adjusted EBITDA margin for the 13-week period was 11.5%, compared to 10.2% for the 14-week period, showing an improvement of 1.3 percentage points[43] - Net income margin for the 13-week period was 6.4%, up from 5.3% in the previous year, reflecting a 1.1 percentage point increase[43] - Total depreciation and amortization for the 13-week period was $3,264,000, slightly higher than $3,194,000 in the previous year[43] - Stock-based compensation expense for the 13-week period was $2,696,000, compared to $1,915,000 in the prior year, an increase of 40.7%[43] - Interest expense for the 13-week period was $239,000, down from $268,000 in the previous year, indicating a decrease of 10.8%[43] - The company reported an income tax provision of $3,740,000 for the 13-week period, compared to $2,351,000 in the previous year, representing a 59% increase[43] - Interest income for the 13-week period was $(1,435,000), compared to $(1,044,000) in the previous year, reflecting a decrease in interest income[43]

Financial Performance - Fiscal Year 2024 net revenue reached $606.3 million, representing a 28.5% increase compared to Fiscal Year 2023 [1][12] - Fourth quarter net revenue increased by 22.2% to $166.0 million, driven by volume-related revenue growth and price/mix benefits [4][6] - Adjusted EBITDA for Fiscal Year 2024 was $86.7 million, up from $48.3 million in the previous year, reflecting a significant growth in profitability [6][15] Growth Outlook - The company projects a net revenue of at least $740 million for Fiscal Year 2025, indicating a growth of at least 22% compared to Fiscal Year 2024 [19][23] - Vital Farms aims to achieve a $1 billion net revenue target by 2027, supported by supply chain investments and expansion of its farm network [1][19] Operational Highlights - The company added approximately 125 new family farms in 2024, bringing the total to over 425 farms [2] - Gross profit for Fiscal Year 2024 was $229.9 million, with a gross margin of 37.9%, an increase from 34.4% in the previous year [13][15] Cash Flow and Capital Expenditures - Cash, cash equivalents, and marketable securities totaled $160.3 million as of December 29, 2024, with no outstanding debt [17] - Capital expenditures for the year were $28.6 million, below guidance as some spending was extended into 2025 [18][23]

Core Insights - Vital Farms has been recognized as 2 in the annual MO 100 Top Impact CEO Ranking by Big Path Capital, marking the fourth consecutive year of recognition and an improvement from 3 in 2024 [1][3] - The ranking is based on a "Force for Good" Score, which considers a company's growth rate, annual revenue, and B Lab's B Impact Assessment score, reflecting the company's impact on people and the planet [2] Company Overview - Vital Farms, a Certified B Corporation, offers ethically produced foods and is the leading U.S. brand of pasture-raised eggs by retail dollar sales, working with over 425 family farms [4] - The company emphasizes humane treatment of farm animals and sustainable farming practices, prioritizing long-term benefits for all stakeholders, including farmers, consumers, and the environment [4] - Vital Farms' products are available in approximately 24,000 stores nationwide and are featured on menus at numerous foodservice operators across the country [4]

Group 1 - Vital Farms has been ranked 2 in the annual MO 100 Top Impact CEO Ranking by Big Path Capital, moving up from 3 in 2024, marking the fourth consecutive year of recognition for both the company and its President & CEO Russell Diez-Canseco [1][3] - The MO 100 ranking is based on a "Force for Good" Score, which is calculated by multiplying a company's growth rate, annual revenue, and B Lab's B Impact Assessment score, reflecting the company's impact on people and the planet [2] - Vital Farms is a Certified B Corporation that focuses on ethically produced foods and humane treatment of farm animals, working with over 425 family farms and being the leading U.S. brand of pasture-raised eggs by retail dollar sales [4] Group 2 - The company emphasizes long-term benefits for all stakeholders, including farmers, customers, communities, and the environment, and operates as a Delaware public benefit corporation [4] - Vital Farms' products, including shell eggs, butter, hard-boiled eggs, and liquid whole eggs, are available in approximately 24,000 stores nationwide and are featured on menus at numerous foodservice operators [4]

Company Performance - Vital Farms (VITL) closed at $34.77, reflecting a -1.72% change from the previous day's closing price, which is less than the S&P 500's daily loss of 0.43% [1] - Over the past month, shares of Vital Farms have decreased by 20.3%, underperforming the Consumer Staples sector's loss of 0.05% and the S&P 500's gain of 2.6% [1] Upcoming Earnings Report - Vital Farms is set to release its earnings report on February 27, 2025, with an expected EPS of $0.16, representing a decline of 5.88% from the same quarter last year [2] - The consensus estimate anticipates revenue of $160.23 million, indicating a 17.98% increase compared to the same quarter last year [2] Analyst Estimates and Revisions - Recent adjustments to analyst estimates for Vital Farms are being closely monitored, as they reflect the latest near-term business trends [3] - Positive revisions in estimates indicate analysts' confidence in the company's business performance and profit potential [3] Zacks Rank and Valuation - The Zacks Rank system, which ranges from 1 (Strong Buy) to 5 (Strong Sell), currently ranks Vital Farms at 4 (Sell) [5] - The Zacks Consensus EPS estimate has decreased by 0.92% over the last 30 days [5] - Vital Farms has a Forward P/E ratio of 28.63, which is a premium compared to the industry's average Forward P/E of 16.06 [6] Industry Context - The Food - Miscellaneous industry, part of the Consumer Staples sector, currently holds a Zacks Industry Rank of 181, placing it in the bottom 28% of over 250 industries [6] - The Zacks Industry Rank evaluates the performance of distinct industry groups, showing that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [7]

Core Viewpoint - Vital Farms (VITL) is anticipated to report a year-over-year decline in earnings despite an increase in revenues for the quarter ending December 2024, with the actual results being crucial for the stock's near-term price movement [1][2]. Earnings Expectations - The consensus estimate for Vital Farms' quarterly earnings is $0.16 per share, reflecting a year-over-year decrease of 5.9%, while revenues are projected to reach $160.23 million, representing an 18% increase from the previous year [3]. - The consensus EPS estimate has been revised down by 9.3% over the last 30 days, indicating a reassessment by analysts [4]. Earnings Surprise Prediction - The Zacks Earnings ESP model suggests that the Most Accurate Estimate for Vital Farms is higher than the Zacks Consensus Estimate, resulting in an Earnings ESP of +8.97%, indicating a potential for a positive earnings surprise [10][11]. - However, the stock currently holds a Zacks Rank of 4, which complicates the prediction of an earnings beat [11]. Historical Performance - In the last reported quarter, Vital Farms exceeded the expected earnings of $0.14 per share by delivering $0.16, resulting in a surprise of +14.29% [12]. - Over the past four quarters, the company has consistently beaten consensus EPS estimates [13]. Conclusion - While Vital Farms does not appear to be a strong candidate for an earnings beat, it is essential for investors to consider other factors influencing stock performance ahead of the earnings release [16].

Core Viewpoint - Vital Farms (VITL) has experienced a significant decline in stock performance, returning -18.1% over the past month, contrasting with the S&P 500's +4.3% and the Zacks Food - Miscellaneous industry's +2.1% [1] Earnings Estimate Revisions - The consensus earnings estimate for Vital Farms is projected at $0.16 per share for the current quarter, reflecting a year-over-year decrease of -5.9% and a 30-day change of -9.3% [4] - For the current fiscal year, the consensus earnings estimate is $1.11, indicating an increase of +88.1% from the previous year, with a slight 30-day change of -0.9% [4] - The next fiscal year's consensus earnings estimate stands at $1.24, showing a year-over-year increase of +11.4% and a 30-day change of -0.8% [5] Revenue Growth Forecast - The consensus sales estimate for the current quarter is $160.23 million, representing a year-over-year increase of +18% [8] - For the current fiscal year, the sales estimate is $600.4 million, indicating a growth of +27.2%, while the next fiscal year's estimate is $710.13 million, reflecting an increase of +18.3% [8] Last Reported Results and Surprise History - In the last reported quarter, Vital Farms generated revenues of $145 million, a year-over-year increase of +31.3%, with an EPS of $0.16 compared to $0.10 a year ago [9] - The reported revenues exceeded the Zacks Consensus Estimate of $144.7 million by +0.21%, and the EPS surprise was +14.29% [10] - The company has consistently beaten consensus EPS and revenue estimates over the past four quarters [10] Valuation - Vital Farms is rated D on the Zacks Value Style Score, indicating it is trading at a premium compared to its peers [14]

Core Viewpoint - Vital Farms is experiencing a decline in stock performance, with a significant drop of 14.92% over the past month, contrasting with gains in the Consumer Staples sector and the S&P 500 [1][2] Financial Performance - Vital Farms is expected to report earnings of $0.16 per share on February 27, 2025, reflecting a year-over-year decline of 5.88% [2] - Revenue is projected to reach $160.23 million, indicating a 17.98% increase compared to the same quarter last year [2] Analyst Estimates - Recent changes in analyst estimates for Vital Farms are crucial, as they often indicate short-term business trends and analyst sentiment regarding the company's profitability [3] - The Zacks Consensus EPS estimate has decreased by 0.92% over the past month, suggesting a bearish outlook [5] Valuation Metrics - Vital Farms has a Forward P/E ratio of 28.65, which is significantly higher than the industry average of 16.67, indicating a premium valuation [6] - The Food - Miscellaneous industry, part of the Consumer Staples sector, holds a Zacks Industry Rank of 178, placing it in the bottom 30% of over 250 industries [6] Zacks Rank System - Vital Farms currently holds a Zacks Rank of 4 (Sell), reflecting a negative sentiment among analysts [5] - The Zacks Rank system has a proven track record, with 1 rated stocks averaging a +25% annual return since 1988 [5][4]

Core Insights - Vital Farms will report its financial results for the fourth quarter and fiscal year ended December 29, 2024, on February 27, 2025, before market open [1] - A conference call and webcast will be held on the same day at 8:30 a.m. ET to discuss the results [2] - Vital Farms is a Certified B Corporation that focuses on ethically produced foods and is the leading U.S. brand of pasture-raised eggs by retail dollar sales [3] Company Overview - Vital Farms started in 2007 on a single farm in Austin, Texas, and has grown to work with over 425 family farms [3] - The company emphasizes humane treatment of farm animals and sustainable farming practices [3] - Vital Farms' products, including shell eggs, butter, hard-boiled eggs, and liquid whole eggs, are sold in approximately 24,000 stores nationwide [3]