VITL - Vital Farms: Revisiting The Investment Thesis

• The company delivered another quarter of solid results. There are a number of recent positive developments such as the increase in shell egg penetration and the addition of new farms.
• Going forward, I believe the main catalyst will be the opening of the Egg Central Station in mid-2022 which will significantly add to the company's capacity.
• VITL is now cheaper than in October 2021, but it is still trading at over 30x forward EV/EBITDA.
• The current valuation leaves little margin of safety if inflation becomes a significant threat for margins or if growth unexpectedly slows down.

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