COOK - Why Traeger Stock Fired Up Today
2023-03-17 12:06:16 ET
Shares of pellet-grill company Traeger (NYSE: COOK) fired up on Friday after the company reported financial results for the fourth quarter of 2022. Q4 results beat expectations, and Traeger stock is consequently up 24% as of 11:10 a.m. ET -- somewhat surprising considering management's guidance was below expectations.
In Q4, Traeger generated revenue of $138 million, which was down 21% year over year but better than management's implied guidance of $117 million to $122 million. CEO Jeremy Andrus said, "We were pleased to see the consumer respond favorably to our efforts to drive demand during the holiday period."
For 2022, Traeger's revenue fell almost 17% year over year to $656 million. Sales of consumable pellets held up well, and sales of accessories were actually up thanks to an acquisition. But sales of its grills were down almost 35%. For context, Traeger's grills -- like the products of many premium consumer brands -- were flying off the shelves in the earlier days of the pandemic, but sales are now normalizing.
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Why Traeger Stock Fired Up Today