Tattooed Chef, Inc. (NASDAQ:TTCF) spiked investors’ interest after the plant-based food company announced that it entered into an expanded distribution agreement with retail giant Walmart, Inc. (WMT). The move is not only expected to boost the company’s financials but also enhance the visibility and availability of its products at Walmart stores.
According to the agreement, shelves displaying Tattooed Chef’s frozen products will increase to 13 SKUs from five. Furthermore, starting from October, the availability of the company’s products will rise to an average of 2,000 Walmart stores from 300 stores.
Apart from this deal, the company has signed an asset purchase agreement, valuing around $10 million, with Desert Premium Group. It has also entered into a new lease agreement with Desert Premium Group to add roughly 80,000 square feet of manufacturing capacity. The plant-based food company expects operations of this new facility to be accretive to its bottom line from the beginning of 2023.
The timing of the deals comes at a time when the global plant-based food market looks promising on the back of growing awareness and solid demand. According to a report by Future Market Insights, this space is expected to see a CAGR of 12.2% between 2022 and 2032.
Is Tattooed Chef a Good Stock to Buy?
Tattooed Chef seems to be a decent stock for now, as, according to TipRanks, it has 51.5% upside potential. Tattooed Chef’s price forecast stands at $9.50 per share. The stock, which has lost 59.5% so far this year, has a Moderate Buy consensus rating based on one Buy and two Holds.
Contrary to the analysts, financial bloggers are 81% bullish on TTCF stock, compared to the sector average of 65%.
Concluding Thoughts
During the second quarter, Tattooed Chef increased the availability of its products by widening retail visibility to about 17,200 retail stores across the United States. Considering that the company has been firing on all cylinders to expand its retail visibility, the latest initiatives should bode well for its stock, which was up 11% on Wednesday, at the time of writing, post the announcement of the deals.
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