Shares of Goodfood Market Corp. (TSE:FOOD) declined 22.4% on October 14 after the company provided a crucial strategic and financial update.
Pick the best stocks and maximize your portfolio:
- Discover top-rated stocks from highly ranked analysts with Analyst Top Stocks!
- Easily identify outperforming stocks and invest smarter with Top Smart Score Stocks
Based in Montreal, Canada, Goodfood Market Corp. is an online grocery, home meal, and meal kit company.
The company’s management stated that it will discontinue its 30-minute delivery service, mark a non-cash impairment of approximately $45-$50 million in Q4, and is also looking for a revised credit facility with its lenders as it had breached a covenant under its existing credit facilities.
In the press release, the company’s management stated, “While we are pleased with the progress we have made, looking forward, the operating investments necessary to bring 30-minute deliveries to an attractive level of profitability would require significant additional capital and operating expense investments.”
Looking ahead, it added, “Our strategy going forward is centered on building the Goodfood brand through our weekly meal plans and add-ons nationally, providing an epic selection of Goodfood branded products, as well as increasing flexibility and access to our products over time.”
Goodfood could be a potential takeover candidate as its CEO, Jonathan Ferrari, is known to have talks with several people for partnership or other deals, according to a Bloomberg report.
Is Goodfood a Buy or Sell?
Currently, Goodfood is neither a Buy nor a Sell. Given the company’s ongoing challenges, Goodfood Market stock has received three Hold recommendations for an overall Hold consensus rating. Goodfood Market’s average price forecast of C$1.30 implies 120.3% upside potential.
TipRanks’ data shows that insiders have a negative signal on the stock. Over the past quarter, there has been an increase in insiders selling their shares of FOOD stock worth C$465,500.
Read full Disclosure
