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meal kit company hello fresh The company’s stock price plummeted on Friday (March 8), its biggest single-day decline since its market debut in 2017.
The company’s shares fell to a low of 6.13 euros (about $6.71), a record 48% drop, Bloomberg reported. report Friday.
Once hailed as a pioneer of convenience and innovation during the coronavirus pandemic lockdown, HelloFresh’s market value has fallen and is now 93% below its 2021 peak, according to a report. It is said that there is.
Friday’s slump came after the company announced it was abandoning its 2025 profit target, citing the need for further investment in its ready-to-eat food division, the report said.
The report notes that despite previously showing a promising 50% growth rate, additional investment required and declining interest in core meal kit products despite extensive promotional efforts The sector’s profitability is hampered by both the inability to offset
Ahead of this decline, there was optimism for HelloFresh, with the majority of analysts maintaining a buy rating, which was in part due to the company’s ready-to-eat food growth last year, the report said. states.
bernstein Analyst william woodsHolding a more cautious outlook since 2021, he said recent earnings guidance for 2023 fell short of even the most conservative expectations, according to the report.
Compared to its peers in the European food delivery market, delivery hero and Just Eat Takeaway.comhas a multiple of more than 0.5x next 12-month sales, while HelloFresh is valued at about 0.2x, the report said.
This difference becomes even more pronounced when you look across the Atlantic to US locations. door dashIt is trading at more than five times next year’s sales, according to the report.
PYMNTS Intelligence found HelloFresh to be the second most popular. subscription servicesecond only to Amazon Subscribe & Save, with 25% of its subscribers participating in its meal kit program.
Meal kit providers are gaining share from brick-and-mortar stores, with 47% of HelloFresh subscribers saying their visits to physical stores have decreased, according to .Replenishment Economy: Details of Household Supply”, PYMNTS Intelligence and Sticky Aio collaboration.
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