Vital Farms Q3 revenue misses estimates; cuts FY forecast

Overview

• U.S. pasture-raised egg seller's Q3 revenue fell 8.4% yr/yr, slightly missing analyst expectations

• Q3 adjusted EBITDA beat analyst estimates despite higher input costs and unfavorable sales mix

• Company cut full-year 2026 outlook and withdrew long-term 2030 financial targets

Outlook

• Company sees 2026 net revenue of around $730 mln, down from prior $775-800 mln outlook

• Company expects 2026 adjusted EBITDA loss of about $15 mln, versus prior view of up to $10 mln gain

• Says updated FY outlook reflects later-than-anticipated timing of new distribution placements and no seasonal uplift in demand or egg pricing

• Vital Farms withdraws previously issued fiscal 2030 financial targets

Result Drivers

• PRICE AND VOLUME DECLINES - Co said lower prices and reduced volumes, particularly in retail, drove revenue down yr/yr

• HIGHER COSTS AND UNFAVORABLE MIX - Higher input and production costs and oversupply led to more low-margin sales, reducing gross profit

• DISTRIBUTION GAINS AND COST ACTIONS - Co cited expanded distribution and efforts to reduce supply and costs as supporting sequential improvement

Company press release:

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 4 "strong buy" or "buy", 6 "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 $11.00, about 19.8% above its November 2 closing price of $9.18

Reuters Recommended Reads

• Nov 2 - Canada's Pizza Pizza Royalty Q3 same store sales fall on weak consumer spending

• Nov 2 - Herbalife's Q3 results beat estimates on Asia-Pacific sales growth; lifts FY outlook

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)