HLFFF - HelloFresh: A Recipe For Concern Or A Half-Baked Opportunity

2024-01-31 07:09:16 ET

Summary

• HelloFresh stock is trading at a four-year low, with a decrease in the bottom line and increased cash burn.
• The company has narrowed its revenue growth outlook and lowered its AEBITDA outlook for the fiscal year 2023.
• HLFFF faces challenges in customer retention and competition in the meal kit industry.

HelloFresh SE (HLFFF) is the market leader in the meal kit delivery service market in the US. Despite this, the company's recent financial performance has elicited mixed reactions, with some analysts voicing concerns about its future prospects. The company's top line has nearly doubled since FY2020, but its bottom line has been on a downward trend, falling from $450.8 million in FY2020 to $51.2 million TTM. This decline is accompanied by an increase in cash burn and a simultaneous decrease in cash from operations. Consequently, the stock is currently trading at a four-year low....

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