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Summary
- Goodfood Corp has 319,000 active subscribers.
- The global meal-kit industry was worth US$ 4 billion in 2020 and the next five years, the worth would be US$ 7.63 billion.
- The company's stock thrived during the pandemic and will likely maintain its dominance this year as well.
The outbreak of the coronavirus pandemic affected many food and retail companies in 2020, Social distancing measures and lockdown restrictions impacted their sales and revenues.
However, one Canadian consumer stock hit the ball out of the park, faring better than expected despite the pandemic crisis and booming e-commerce industry.
We are talking about Goodfood Market Corp. (TSX:FOOD), one of the leading online grocery company that offers fresh meat and grocery solutions to its consumers. The company's stock thrived during the pandemic and will likely maintain its dominance this year as well. There's no denying that the doorstep food delivery is not new but GoodFood's unique-selling point is its meal-kit delivery service.
This service is popular among the customers as it removes their daily troubles of planning a meal and its ingredients. The customer can choose a pre-selected kit and then just put in all the ingredients and prepare the meal.
In March, the company announced that it has 319,000 active subscribers. In the second quarter of 2021, 13,000 new active subscribers joined the customer base, an increase of 30 per cent year-over-over (YoY).
Goodfood Corp.'s stock grew 148.6 per cent in a year. However, it has declined by 28 per cent year-to-date (YTD). The scrips were priced at C$ 8.28 apiece at market close on March 29.
The current price could be used as an excellent entry point by the investors who are looking for long-term gains and diversify their portfolio. It is 46 per cent down from its 52-week high of C$ 14.7200, recorded on January 26, 2021.
According to the data platform Statistica, the global meal-kit industry was worth US$ 4 billion in 2020 and in the next five years, the worth would be US$ 7.63 billion.
©Kalkine Group 2021
A look at the company’s financials
The food and grocery services company has a market cap of C$ 607 million and holds a price-to-book ratio of 9.976.
In the first quarter results, the company achieved revenue of C$ 91 million in Q1 2021, an increase of 62 per cent YoY. For the same period, the gross profit was C$ 29 million, up by 82 per cent YoY.
The above constitutes a preliminary view and any interest in stocks should be evaluated further from an investment point of view.
