Tattooed Chef $TTCF stock continued to climb off a multiple bottom pattern on August 25, 2022, two days after the company announced a deal with Walmart.
Tattooed Chef Expands Nationwide Retail Product Distribution
On August 23, 2022, Tattooed Chef (Nasdaq: TTCF) announced an expanded distribution agreement with Walmart, Inc. that will increase the availability of Tattooed Chef branded products at Walmart stores across the United States. The company also announced the simultaneous signing and closing of an asset purchase agreement with Desert Premium Group and the signing of a new lease agreement that will strengthen its vertically integrated operating model and add approximately 80,000 square feet of manufacturing capacity.
Under the agreement with Walmart, Tattooed Chef will increase the brand’s frozen shelf presence from 5 to 13 SKUs and expand the availability of these 13 SKUs from an average of 300 Walmart stores to an average of 2,000 Walmart stores. Initial availability of Tattooed Chef’s products at these new Walmart locations is expected no later than October 2022.
Tattooed Chef also announced the signing of a definitive agreement and simultaneous closing under which the company acquired certain assets from Desert Premium Group for approximately $10 million and the signing of a lease agreement for an 80,000-square-foot manufacturing facility located in Albuquerque, New Mexico at which the assets acquired (the “Desert Premium Group Assets”) currently operate. The Desert Premium Group Assets include packaging and production equipment, and the leased facility dramatically expands the company’s manufacturing footprint with significant cold storage and ambient storage. The facility’s proximity to Tattooed Chef’s Foods of New Mexico operations will allow the company to consolidate distribution activities to capture added economies of scale. The asset purchase and lease agreement took effect on August 19, 2022.
The company anticipates the operations of this new facility will be cashflow neutral through the remainder of 2022 and be accretive to earnings by the start of 2023.
Tattooed Chef is a leading plant-based food company offering a broad portfolio of innovative and sustainably sourced plant-based foods. Tattooed Chef’s signature products include ready-to-cook bowls, zucchini spirals, riced cauliflower, acai and smoothie bowls, cauliflower pizza crusts, wood-fired plant-based pizzas, handheld burritos, quesadillas, and Mexican entrees, which are available in the frozen food sections of leading national retail food and club stores across the United States as well as on Tattooed Chef’s e-commerce site. Understanding consumer lifestyle and food trends, a commitment to innovation, and self-manufacturing allows Tattooed Chef to introduce new products continuously.
Tattooed Chef price target lowered to $10 from $13
On August 15, 2022, Cowen analyst Brian Holland lowered the firm’s price target on Tattooed Chef to $10 from $13 and kept an Outperform rating on the shares. The analyst said a timing issue on ingredients and sharper than expected decline within the club drove the top line miss, while corresponding fixed cost de-leveraging exacerbated cost inflation.
Watch the Dark Pools For Tattooed Chef $TTCF Buy Orders
Between January and March of 2022, orders came off the dark pools that were sell orders as the stock plunged by 60% shortly after.
Notice the total absence of any dark pool trades since March 2022. With the stock forming a multiple bottom and a solid floor, let’s see if institutional investors get back into $TTCF stock in the wake of the Walmart deal.
📺 Are Tattooed Chef Products Any Good? Review & Taste Test
📈 Tattooed Chef $TTCF Stock Technical Analysis
Tattooed Chef $TTCF is coming off a multiple-bottom pattern. The stock is in a technical weak downtrend rating, but short-term indicators are suggesting that a trend reversal is possible. Keep a close watch on the dark pools for evidence that institutional investors are moving back into the stock.