Group 1 - There is a significant trend in the US towards healthier, natural, and organic products, particularly in the food industry [1] - This movement is gaining momentum across various industries, indicating a broader shift in consumer preferences [1]

Industry Overview - The natural foods industry has transitioned from a niche market to a mainstream sector due to increased health awareness and environmental concerns among consumers [2] - There is a rising emphasis on clean eating, sustainability, and ethical sourcing, leading to the popularity of natural and organic food products [2] - Consumers are increasingly seeking transparency in sourcing and minimal processing, preferring organic, non-GMO, and preservative-free options [3] Market Growth Drivers - Governments worldwide are encouraging clean eating and implementing stricter food labeling regulations, which further boost market growth [3] - Natural food companies are experiencing increased brand loyalty and the ability to charge premium prices due to these trends [3] - The global healthy foods market is projected to reach $2.26 trillion by 2035, indicating significant growth potential [5] Company Responses - Companies like General Mills and Beyond Meat are responding to the demand for organic, clean-label, and ethically sourced foods [4] - Firms are investing in plant-based alternatives, functional foods, and sustainable farming technologies to meet consumer preferences [5] Key Players - Hain Celestial is a pioneer in the natural and organic food space, focusing on high-growth segments like infant nutrition and snacks [7] - Vital Farms emphasizes transparency and ethical farming practices, with a strong position in pasture-raised eggs and a goal of $1 billion in net revenues by 2027 [10][12] - Sprouts Farmers Market is recognized for its unique leadership in the natural and organic grocery segment, focusing on fresh, local, and innovative products [13] - United Natural Foods is advancing the natural and organic food movement through its wholesale distribution network, achieving 12% sales growth in its Wholesale Natural Products segment [16] Innovation and Infrastructure - Companies are investing in infrastructure and supply chain improvements to meet surging consumer demand while maintaining quality [11][15] - Hain Celestial is focusing on innovation and operational productivity to enhance competitiveness in the natural and organic category [9] - Vital Farms is scaling its supply chain by partnering with over 500 family farms and investing in production capacity [11] - Sprouts Farmers is launching over 350 new products in 2025, emphasizing organic certification and high-protein formulations [14] - United Natural Foods is streamlining processes through Lean Daily Management to improve service levels and ensure efficient delivery of products [17][18]

Company Performance - Vital Farms reported quarterly earnings of $0.36 per share, exceeding the Zacks Consensus Estimate of $0.27 per share, with an earnings surprise of +33.33% [1] - The company achieved revenues of $184.77 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 9.10%, compared to $147.39 million in the same quarter last year [2] - Over the last four quarters, Vital Farms has consistently surpassed consensus EPS estimates four times and topped revenue estimates three times [2] Market Position - Vital Farms shares have underperformed the market, losing about 1% since the beginning of the year, while the S&P 500 has gained 7.9% [3] - The current Zacks Rank for Vital Farms is 3 (Hold), indicating that the shares are expected to perform in line with the market in the near future [6] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $0.26 on revenues of $186.38 million, and for the current fiscal year, it is $1.26 on revenues of $743.6 million [7] - The outlook for the industry, specifically the Food - Miscellaneous sector, is currently in the bottom 23% of over 250 Zacks industries, which may impact the stock's performance [8]

Financial Performance & Goals - Vital Farms aims to achieve $1 billion in net sales by 2027[27], with an adjusted EBITDA margin of 12% to 14% and a gross margin of approximately 35%[28] - In Q2 2025, net revenue increased by 25.4% to $184.8 million compared to Q2 2024[53], driven by both price/mix benefits ($15.7 million) and volume-related revenue growth ($21.7 million)[55] - Gross profit for Q2 2025 was $71.8 million, representing 38.9% of net revenue[53], while adjusted EBITDA was $29.9 million, or 16.2% of net revenue[53] - Vital Farms updates its 2025 guidance with net revenue projected to be at least $770 million, adjusted EBITDA at least $110 million, and capital expenditures between $90 million and $110 million[61] Supply Chain & Distribution - Vital Farms works with a network of over 500 family farms[20] and is expanding its distribution to meet growing consumer demand[40], with products in over 23,500 retail stores[23] - The company has a strong pipeline of farmers interested in working with them, with 8 times more interested farmers than farms needed in the next four quarters[35] Market Position & Consumer Behavior - Consumer metrics are improving, with household penetration increasing to 31% in Q2 2025[38] - Vital Farms' shell egg buy rate is on an upward trend, reaching $37.80 in Q2 2025[38] - Private label expansion in the pasture-raised category is not significantly impacting Vital Farms' market share, with brand shifting accounting for only approximately 1% of private label growth[45]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ______________ to ______________ Commission File Number: 001-39411 Vital Farms, Inc. (Exact name of registrant as specified in its charter) FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 29, 2025 OR WASHINGTON, D.C. 20549 Securities register ...

[Second Quarter 2025 Financial Highlights and Business Update](index=1&type=section&id=Second%20Quarter%202025%20Financial%20Highlights%20and%20Business%20Update) [2.1. Key Financial Highlights (Q2 2025 vs Q2 2024)](index=1&type=section&id=2.1.%20Key%20Financial%20Highlights%20(Q2%202025%20vs%20Q2%202024)) Vital Farms delivered strong Q2 2025 results with significant growth in net revenue and Adjusted EBITDA **Key Financial Data for Q2 2025 (vs Q2 2024):** | Metric | Q2 2025 | Q2 2024 | YoY Change | | :--- | :--- | :--- | :--- | | Net Revenue | $184.8 million | $147.4 million | +25.4% | | Gross Margin | 38.9% | 39.1% | -0.2% | | Net Income | $16.6 million | $16.3 million | +1.8% | | Diluted Net Income Per Share | $0.36 | $0.36 | 0% | | Adjusted EBITDA | $29.9 million | $23.3 million | +28.3% | [2.2. CEO Commentary and Operational Achievements](index=1&type=section&id=2.2.%20CEO%20Commentary%20and%20Operational%20Achievements) The CEO highlighted the strong business model, brand growth, and key milestones in supply chain expansion - The company's business model is robust, with consumer brand awareness increasing annually[2](index=2&type=chunk) - Key milestones were achieved in supply chain expansion, including adding **50 new farms** this quarter, bringing the total to over **500 family farms** with **9 million contracted laying hens**[2](index=2&type=chunk) - The Seymour facility was redesigned with groundbreaking for additional capacity planned to come online in 2027; installation of a third production line at Springfield continues, expected to complete in Q4 this year; the first accelerator farm is now operational[2](index=2&type=chunk) - Successful implementation of strategic pricing measures, combined with strong brand loyalty, led the company to raise its full-year revenue guidance[2](index=2&type=chunk) - The company is committed to ethical food production and sustainable growth, and is on track to achieve its **$1 billion revenue target by 2027**[2](index=2&type=chunk) [Detailed Second Quarter 2025 Financial Performance](index=1&type=section&id=Detailed%20Second%20Quarter%202025%20Financial%20Performance) [3.1. Income Statement Analysis](index=1&type=section&id=3.1.%20Income%20Statement%20Analysis) Net revenue growth was driven by price/mix and volume, while investments in scale slightly impacted gross margin - Q2 2025 net revenue increased **25.4% to $184.8 million**, driven by **$15.7 million in price/mix benefits** and **$21.7 million in volume-related growth**[3](index=3&type=chunk) - Gross profit grew to **$71.8 million**, but gross margin slightly decreased from 39.1% to **38.9%** due to investments in scaling the business (increased labor and overhead), partially offset by favorable price/mix benefits[4](index=4&type=chunk) - Income from operations increased to **$23.8 million**, driven by higher revenue and gross profit, partially offset by increased marketing, shipping, distribution, and employee-related costs[6](index=6&type=chunk) - Net income increased to **$16.6 million**, with diluted net income per share flat at **$0.36**, driven by revenue and operating income growth but partially offset by higher taxes due to fewer tax benefits from non-qualified stock option exercises and restricted stock unit vestings[7](index=7&type=chunk) - Adjusted EBITDA increased to **$29.9 million**, representing **16.2% of net revenue**, primarily due to higher sales and gross margin, partially offset by increased employee investments[8](index=8&type=chunk) [3.2. Balance Sheet and Cash Flow Overview](index=2&type=section&id=3.2.%20Balance%20Sheet%20and%20Cash%20Flow%20Overview) The company maintained a strong cash position with no debt, though operating cash flow decreased while capital expenditures rose - As of June 29, 2025, cash, cash equivalents, and marketable securities totaled **$155 million**, and the company had no outstanding debt[10](index=10&type=chunk) **Cash Flow Overview (26 Weeks Ended June 29, 2025 vs 26 Weeks Ended June 30, 2024):** | Metric | 26 Weeks 2025 | 26 Weeks 2024 | Change | | :--- | :--- | :--- | :--- | | Net Cash Provided by Operating Activities | $4.5 million | $40.1 million | -88.8% | | Capital Expenditures | $10.0 million | $6.9 million | +44.9% | [Fiscal Year 2025 Outlook and Strategic Initiatives](index=2&type=section&id=Fiscal%20Year%202025%20Outlook%20and%20Strategic%20Initiatives) [4.1. Updated Financial Guidance](index=2&type=section&id=4.1.%20Updated%20Financial%20Guidance) The company raised its FY2025 guidance for net revenue and Adjusted EBITDA, reflecting strong business performance **Updated FY2025 Guidance (vs FY2024):** | Metric | New Guidance | Growth Rate (vs FY2024) | Old Guidance | | :--- | :--- | :--- | :--- | | Net Revenue | At least $770 million | At least 27% | At least $740 million | | Adjusted EBITDA | At least $110 million | At least 26% | At least $100 million | - The raised guidance is attributed to strong performance in the core business, successful implementation of strategic pricing, robust consumer demand, and improved supply from an expanded family farm network[12](index=12&type=chunk) - Profit pressure from tariff impacts and planned promotional activities is expected in the second half of the year, but these factors are fully incorporated into the guidance[12](index=12&type=chunk) - The company is confident in achieving its **$1 billion net revenue target by 2027**[12](index=12&type=chunk) [4.2. Capital Expenditure and Growth Strategy](index=2&type=section&id=4.2.%20Capital%20Expenditure%20and%20Growth%20Strategy) The company significantly increased its FY2025 capital expenditure guidance to accelerate capacity expansion projects **FY2025 Capital Expenditure Guidance:** | Metric | New Guidance | Old Guidance | | :--- | :--- | :--- | | Capital Expenditures | $90 million to $110 million | $50 million to $60 million | - The increase in capital expenditure reflects a strategic decision to build two production lines simultaneously at the Seymour, Indiana facility and add on-site cold storage to meet future demand and optimize capital efficiency[12](index=12&type=chunk)[13](index=13&type=chunk) - The capital plan also includes investments in a new production line at Springfield Egg Central Station, accelerator farms, and a digital transformation project expected to go live in early fall 2025[13](index=13&type=chunk) [Company Profile and Important Disclosures](index=3&type=section&id=Company%20Profile%20and%20Important%20Disclosures) [5.1. About Vital Farms](index=3&type=section&id=5.1.%20About%20Vital%20Farms) Vital Farms is a certified B Corporation and public benefit corporation focused on ethically produced food - Vital Farms (Nasdaq: VITL) is a certified B Corporation that offers a range of ethically produced foods nationwide[16](index=16&type=chunk) - The company partners with over 500 family farms and is the leading U.S. brand of pasture-raised eggs by retail dollar sales[16](index=16&type=chunk) - Its ethical philosophy is demonstrated through the humane treatment of farm animals and sustainable farming practices[16](index=16&type=chunk) - As a Delaware public benefit corporation, Vital Farms prioritizes the long-term interests of all its stakeholders, including farmers, suppliers, customers, consumers, communities, the environment, employees, and stockholders[16](index=16&type=chunk) - Products include shell eggs, butter, hard-boiled eggs, and liquid whole eggs, sold in over 23,500 stores and to hundreds of foodservice operators nationwide[16](index=16&type=chunk) [5.2. Forward-Looking Statements and Risk Factors](index=3&type=section&id=5.2.%20Forward-Looking%20Statements%20and%20Risk%20Factors) The report contains forward-looking statements subject to significant risks and uncertainties detailed in SEC filings - This press release contains "forward-looking" statements concerning market opportunities, brand strength, anticipated growth, supply chain constraints, digital transformation projects, specifications and timing for the Seymour and Springfield facilities, and future revenue and financial performance[17](index=17&type=chunk) - These statements are based on Vital Farms' current assumptions, expectations, and beliefs and are subject to significant risks, uncertainties, assumptions, and changes in circumstances that may cause actual results, performance, or achievements to differ materially from those expressed in any forward-looking statement[17](index=17&type=chunk) - Risks and uncertainties include, but are not limited to, the ability to attract and retain customers and suppliers, profitability, food safety issues, changes in consumer preferences, agricultural disease outbreaks, international trade policies, economic conditions, capital expenditure requirements, and the competitive environment[18](index=18&type=chunk)[19](index=19&type=chunk) - These risks and uncertainties are described in more detail in its filings with the SEC, including the Quarterly Report on Form 10-Q for the fiscal quarter ended June 29, 2025[20](index=20&type=chunk) [5.3. Non-GAAP Financial Measures Explanation](index=8&type=section&id=5.3.%20Non-GAAP%20Financial%20Measures%20Explanation) The company uses non-GAAP measures like Adjusted EBITDA to supplement GAAP results for performance evaluation - Management believes that Adjusted EBITDA and Adjusted EBITDA margin, as non-GAAP financial measures, provide investors with useful supplemental information to evaluate the company's performance[29](index=29&type=chunk) - Adjusted EBITDA is calculated as net income, adjusted to exclude depreciation and amortization, stock-based compensation expense, income tax (benefit) or provision, interest expense, and interest income[30](index=30&type=chunk) - Limitations of these non-GAAP measures include not reflecting future capital commitments, capital expenditures, stock-based compensation expense, other non-operating expenses like interest expense, and tax payments[31](index=31&type=chunk) - These measures may not be comparable to similarly titled measures of other companies due to potential differences in calculation and should be evaluated in conjunction with GAAP financial measures[31](index=31&type=chunk) [Condensed Consolidated Financial Statements](index=5&type=section&id=Condensed%20Consolidated%20Financial%20Statements) [6.1. Condensed Consolidated Statements of Income](index=5&type=section&id=6.1.%20Condensed%20Consolidated%20Statements%20of%20Income) This section presents the unaudited condensed consolidated statements of income for the specified periods | | | | 13-Weeks Ended | | | | 26-Weeks Ended | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | June 29, | | | June 30, | | June 29, | | June 30, | | | 2025 | | | 2024 | | 2025 | | 2024 | | Net revenue | $ | 184,767 | $ | 147,388 | $ | 346,956 | $ | 295,316 | | Cost of goods sold | | 112,985 | | 89,710 | | 212,661 | | 178,742 | | Gross profit | | 71,782 | | 57,678 | | 134,295 | | 116,574 | | Operating expenses: | | | | | | | | | | Selling, general and administrative | | 38,987 | | 33,336 | | 70,897 | | 60,467 | | Shipping and distribution | | 9,000 | | 7,203 | | 17,835 | | 14,799 | | Total operating expenses | | 47,987 | | 40,539 | | 88,732 | | 75,266 | | Income from operations | | 23,795 | | 17,139 | | 45,563 | | 41,308 | | Other income (expense), net: | | | | | | | | | | Interest expense | | (218) | | (257) | | (453) | | (512) | | Interest income | | 1,332 | | 1,316 | | 2,544 | | 2,404 | | Other expense, net | | (378) | | (87) | | (781) | | (364) | | Total other income (expense), net | | 736 | | 972 | | 1,310 | | 1,528 | | Net income before income taxes | | 24,531 | | 18,111 | | 46,873 | | 42,836 | | Income tax provision | | 7,893 | | 1,772 | | 13,334 | | 7,474 | | Net income | $ | 16,638 | $ | 16,339 | $ | 33,539 | $ | 35,362 | | Net income per share: | | | | | | | | | | Basic: | $ | 0.37 | $ | 0.38 | $ | 0.76 | $ | 0.84 | | Diluted: | $ | 0.36 | $ | 0.36 | $ | 0.73 | $ | 0.79 | | Weighted average common shares outstanding: | | | | | | | | | | Basic: | | 44,591,484 | | 42,500,355 | | 44,421,116 | | 42,148,992 | | Diluted: | | 45,804,158 | | 45,248,792 | | 45,815,874 | | 44,600,401 | [6.2. Condensed Consolidated Balance Sheets](index=6&type=section&id=6.2.%20Condensed%20Consolidated%20Balance%20Sheets) This section presents the unaudited condensed consolidated balance sheets as of the specified dates | | | June 29, | | December 29, | | --- | --- | --- | --- | --- | | | | 2025 | | 2024 | | | | (Unaudited) | | | | Assets | | | | | | Current assets: | | | | | | Cash and cash equivalents | $ | 108,224 | $ | 150,601 | | Investment securities, available-for-sale | | 46,773 | | 9,692 | | Accounts receivable, net of allowance for credit losses of $857 and $691 as of June 29, | | | | | | 2025 and December 29, 2024, respectively | | 68,405 | | 54,342 | | Inventories | | 42,710 | | 23,666 | | Prepaid expenses and other current assets, net of allowance for credit losses of $522 and | | | | | | $240 as of June 29, 2025 and December 29, 2024, respectively | | 6,428 | | 7,740 | | Assets held for sale | | 2,667 | | — | | Total current assets | | 275,207 | | 246,041 | | Property, plant and equipment, net | | 111,155 | | 84,521 | | Operating lease right-of-use assets | | 31,196 | | 19,617 | | Goodwill and other assets | | 13,194 | | 9,153 | | Total assets | $ | 430,752 | $ | 359,332 | | Liabilities and Stockholders' Equity | | | | | | Current liabilities: | | | | | | Accounts payable | $ | 66,352 | $ | 38,582 | | Accrued liabilities | | 34,037 | | 31,328 | | Operating lease liabilities, current | | 5,368 | | 3,849 | | Finance lease liabilities, current | | 4,401 | | 3,932 | | Income taxes payable | | 690 | | 838 | | Total current liabilities | | 110,848 | | 78,529 | | Operating lease liabilities, non-current | | 1,361 | | 2,918 | | Finance lease liabilities, non-current | | 6,458 | | 8,011 | | Other liabilities | | 2,307 | | 572 | | Total liabilities | $ | 120,974 | $ | 90,030 | | Commitments and contingencies | | | | | | Stockholders' equity: | | | | | | Preferred stock, $0.0001 par value per share, 10,000,000 shares authorized as of June | | | | | | 29, 2025 and December 29, 2024; no shares issued and outstanding as of June 29, 2025 | | | | | | and December 29, 2024 | | — | | — | | Common stock, $0.0001 par value per share, 310,000,000 shares authorized as of June | | | | | | 29, 2025 and December 29, 2024; 44,661,608 and 44,042,355 shares issued and | | | | | | outstanding as of June 29, 2025 and December 29, 2024, respectively | | 4 | | 4 | | Additional paid-in capital | | 193,119 | | 186,182 | | Retained earnings | | 116,652 | | 83,113 | | Accumulated other comprehensive income | | 3 | | 3 | | Total stockholders' equity | $ | 309,778 | $ | 269,302 | | Total liabilities and stockholders' equity | $ | 430,752 | $ | 359,332 | [6.3. Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=6.3.%20Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) This section presents the unaudited condensed consolidated statements of cash flows for the specified periods | | | | 26-Weeks Ended | | | --- | --- | --- | --- | --- | | | | June 29, | | June 30, | | | | 2025 | | 2024 | | Cash flows from operating activities: | | | | | | Net income | $ | 33,539 | $ | 35,362 | | Adjustments to reconcile net income to net cash provided by operating activities: | | | | | | Depreciation and amortization | | 6,727 | | 6,499 | | Reduction in the carrying amount of right-of-use assets | | 3,691 | | 1,658 | | Amortization and accretion of available-for-sale debt securities | | (296) | | 76 | | Amortization of debt issuance costs | | 43 | | 19 | | Stock-based compensation expense | | 5,887 | | 4,898 | | Deferred taxes | | (24) | | — | | Uncertain tax positions | | 1,735 | | — | | Net realized losses on derivative instruments | | 822 | | 346 | | Other | | 1,293 | | (132) | | Net change in operating assets and liabilities | | (48,904) | | (8,644) | | Net cash provided by operating activities | $ | 4,513 | $ | 40,082 | | Cash flows from investing activities: | | | | | | Purchases of property, plant and equipment | | (9,994) | | (6,914) | | Purchases and settlements of derivative instruments | | 264 | | (669) | | Purchases of available-for-sale securities | | (45,079) | | — | | Maturities and call redemptions of available-for-sale debt securities | | 7,890 | | 13,335 | | Proceeds from the sale of available-for-sale debt securities | | 404 | | — | | Proceeds from the sale of property, plant and equipment | | 608 | | 1 | | Net cash (used in) provided by investing activities | $ | (45,907) | $ | 5,753 | | Cash flows from financing activities: | | | | | | Proceeds from exercise of stock options | | 3,649 | | 6,448 | | Proceeds from issuance of common stock under employee stock purchase plan | | 379 | | 178 | | Payment of tax withholding obligation on vested restricted stock unit shares | | (2,978) | | (1,351) | | Principal payments under finance lease obligations | | (2,033) | | (1,672) | | Payment of financing costs | | — | | (414) | | Net cash (used in) provided by financing activities | $ | (983) | $ | 3,189 | | Net (decrease) increase in cash and cash equivalents | | (42,377) | | 49,024 | | Cash and cash equivalents at beginning of the period | | 150,601 | | 84,149 | | Cash and cash equivalents at end of the period | $ | 108,224 | $ | 133,173 | | Supplemental disclosure of cash flow information: | | | | | | Cash paid for interest | $ | 410 | $ | 512 | | Cash paid for income taxes | | 11,772 | | 11,344 | | Supplemental disclosure of non-cash investing and financing activities: | | | | | | Purchases of property, plant and equipment included in accounts payable and accrued | | | | | | liabilities | $ | 25,590 | $ | 150 | [6.4. Adjusted EBITDA Reconciliation](index=9&type=section&id=6.4.%20Adjusted%20EBITDA%20Reconciliation) This section presents the unaudited reconciliation of net income to Adjusted EBITDA for the specified periods | | 13-Weeks Ended | | | | | 26-Weeks Ended | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | June 29, | | June 30, | | June 29, | | June 30, | | | | 2025 | | 2024 | | 2025 | | 2024 | | | | (in thousands) | | | | (in thousands) | | | | | Net income | $ | 16,638 | $ | 16,339 | $ 33,539 | $ | | 35,362 | | 1 Depreciation and amortization | | 3,468 | | 3,288 | 6,727 | | | 6,499 | | Stock-based compensation expense | | 3,034 | | 2,916 | 5,887 | | | 4,898 | | Income tax provision | | 7,893 | | 1,772 | 13,334 | | | 7,474 | | Interest expense | | 218 | | 257 | 453 | | | 512 | | Interest income | | (1,332) | | (1,316) | (2,544) | | | (2,404) | | Adjusted EBITDA | $ | 29,919 | $ | 23,256 | $ 57,396 | $ | | 52,341 | | Net revenue | $ | 184,767 | $ | 147,388 | $ 346,956 | $ | | 295,316 | | 2 Net income margin | 9.0% | | | 11.1% | | 9.7% | | 12.0% | | 3 Adjusted EBITDA margin | 16.2% | | | 15.8% | | 16.5% | | 17.7% |

Revenues are expected to be $169.36 million, up 14.9% from the year-ago quarter. Estimate Revisions Trend The consensus EPS estimate for the quarter has been revised 1.59% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period. Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change ...

Core Viewpoint - Vital Farms is experiencing a mixed performance in the stock market, with a recent increase in stock price but a decline over the past month, while upcoming earnings are anticipated to show a decrease in EPS compared to the previous year [1][2]. Group 1: Stock Performance - Vital Farms closed at $37.04, reflecting a +2.07% change from the previous day, outperforming the S&P 500's loss of 0.3% [1] - Over the past month, shares of Vital Farms have decreased by 5.79%, while the Consumer Staples sector has lost 1.13% and the S&P 500 has gained 3.64% [1]. Group 2: Earnings Expectations - The company is expected to report earnings on August 7, 2025, with an anticipated EPS of $0.28, representing a 22.22% decline from the same quarter last year [2]. - Quarterly revenue is projected to be $168.88 million, which is a 14.58% increase from the previous year [2]. Group 3: Full Year Estimates - For the full year, analysts expect earnings of $1.27 per share and revenue of $743.1 million, indicating increases of +7.63% and +22.56% respectively from last year [3]. Group 4: Analyst Forecast Revisions - Recent revisions to analyst forecasts for Vital Farms are important as they reflect changing business trends, with positive revisions indicating a favorable business outlook [4]. Group 5: Zacks Rank and Valuation - Vital Farms currently holds a Zacks Rank of 1 (Strong Buy), with a 0.26% rise in the Zacks Consensus EPS estimate over the past month [6]. - The company is trading at a Forward P/E ratio of 28.58, which is higher than the industry average of 16.54, suggesting a premium valuation [7]. Group 6: Industry Context - The Food - Miscellaneous industry, part of the Consumer Staples sector, has a Zacks Industry Rank of 162, placing it in the bottom 35% of over 250 industries [7]. - The Zacks Industry Rank indicates that top-rated industries outperform the bottom half by a factor of 2 to 1 [8].

Core Viewpoint - The article suggests a positive outlook for shares of Vital Farms, Inc. (VITL) in 2024, driven by long-term growth in the ethical food industry despite facing high expectations [1]. Group 1: Company Overview - Vital Farms, Inc. is positioned as a leader in the ethical food sector, which is expected to experience secular growth [1]. Group 2: Investment Opportunities - The investing group "Value In Corporate Events" offers insights into major corporate events such as IPOs, mergers & acquisitions, and earnings reports, aiming to identify the best investment opportunities [1]. - The service covers approximately 10 major events each month, focusing on actionable ideas for investors [1].

Core Insights - The article emphasizes the importance of efficiency ratios as indicators of a company's financial health and operational efficiency [1][2][3][4][5]. Efficiency Ratios - **Receivables Turnover**: This ratio measures a company's ability to extend credit and collect debts, with a higher ratio indicating better performance [2]. - **Asset Utilization**: This ratio assesses how effectively a company converts its assets into sales, with higher values suggesting greater efficiency [3]. - **Inventory Turnover**: This ratio indicates a company's ability to manage inventory relative to its cost of goods sold, with higher values reflecting better inventory management [4]. - **Operating Margin**: This ratio measures the efficiency of a company in controlling operating expenses relative to sales, with higher values indicating better expense management [5]. Screening Process - A screening process was applied using the aforementioned efficiency ratios along with a favorable Zacks Rank (Zacks Rank 1) to identify potential investment opportunities [6]. - The screening narrowed down over 7,906 stocks to 10, focusing on those with efficiency ratios above industry averages [7]. Selected Companies - **Vital Farms (VITL)**: Offers pasture-raised foods and has a four-quarter average positive earnings surprise of 45.3% [8][7]. - **Acushnet (GOLF)**: Designs and distributes golf products, also reporting a four-quarter average positive earnings surprise of 45.3% [9][8]. - **Texas Capital Bancshares (TCBI)**: Focuses on local business ties in Texas and has a four-quarter average positive earnings surprise of 30.2% [10][8]. - **Commerce Bancshares (CBSH)**: Engages in general banking services with a four-quarter average positive earnings surprise of 7.9% [11][8].