Vital Farms: The Recovery Is Starting, But I Need More Proof
Vital Farms reported a challenging Q2 with revenue down 10% YoY, gross margin collapsing to 6.6%, and significant cash burn. Despite poor headline results, VITL beat revenue expectations, reaffirmed full-year guidance, and showed early signs of stabilization in price gaps and supply. Management expects gross margin to recover to ~30% by Q4, but structural changes mean a return to 35-40% margins is unlikely.