Vital Farms shares fall 26% after butter wind-down plan
Updated
Updated · MarketWatch · May 7
Vital Farms shares fall 26% after butter wind-down plan
10 articles · Updated · MarketWatch · May 7
The stock dropped to $8.88 after the company posted a $1.5 million first-quarter loss, versus $16.9 million profit a year earlier.
Vital Farms cut 2026 revenue guidance to $775 million-$800 million from $900 million-$920 million and slashed adjusted EBITDA expectations to flat-$10 million from $105 million-$115 million.
Revenue still rose 15.4% to $187.2 million, topping forecasts, but the company cited egg pricing pressure, heavier promotions and a roughly $32 million hit from managing egg oversupply.
With egg prices crashing, can Vital Farms' ethical premium model survive against newly cage-free rivals?
Is the chaotic butter market the real reason for Vital Farms' retreat, or are internal lawsuits the untold story?