TIVP006: Vital Farms (VITL): Egg-cellent Value? w/ Shawn O'Malley

The Intrinsic Value Podcast - The Investor’s Podcast Network

The Investor's Podcast Network

Investing, Education, Business

4.6 • 593 Ratings

🗓️ 9 February 2025

⏱️ 68 minutes

🔗️ Recording | iTunes | RSS

🧾️ Download transcript

Summary

In today’s episode, Shawn O’Malley (@Shawn_OMalley_) breaks down Vital Farms, a company that sells pasture-raised eggs with a cult-like following. Vital Farms missed the memo that eggs are supposed to be a commodity and instead has brought the “premium egg” market mainstream. Shawn goes through how the company has scaled its business sustainably and ethically through a network of family farms, why the brand has such incredible customer loyalty, how they can continue growing, and why the stock may offer “egg-cellent” value to investors, plus so much more! Prefer to watch? Click here to watch this episode on YouTube. IN THIS EPISODE, YOU’LL LEARN 00:00 - Intro 07:20 - What makes the Vital Farms brand so special to consumers 15:15 - How Vital Farms built up a network of family farms from scratch 28:10 - How the company has leveraged its pricing power and customer loyalty to scale revenues dramatically 40:45 - What Vital Farms has done to fend off allegations of greenwashing 46:33 - What Vital Farms can do to keep expanding its business 51:57 - How to think about the company’s intrinsic value 52:15 - Why the stock appears undervalued relative to other fast-growing, pure-play consumer packaged goods companies 57:53 - Whether Shawn adds Vital Farms to The Intrinsic Value Portfolio And much, much more! *Disclaimer: Slight timestamp discrepancies may occur due to podcast platform differences. BOOKS AND RESOURCES Get smarter about valuing businesses in just a few minutes each week through our newsletter, The Intrinsic Value Newsletter. Vital Farms pitch on the Value Investors Club forum. Learn more about Vital Farms. Check out tracing egg cartons with Vital Farms Matt O’Hayer’s interview with CNBC. Attend the 2025 Berkshire Hathaway shareholder meeting and meet-ups with The Investors Podcast Network Check out the books mentioned in the podcast here. Enjoy ad-free episodes when you subscribe to our Premium Feed. NEW TO THE SHOW? Follow our official social media accounts: X (Twitter) | LinkedIn | Instagram | Facebook | TikTok. Browse through all our episodes (complete with transcripts) here. Try Shawn's favorite tool for picking stock winners and managing our portfolios: TIP Finance. Enjoy exclusive perks from our favorite Apps and Services. Learn how to better start, manage, and grow your business with the best business podcasts. SPONSORS Support our free podcast by supporting our sponsors: Netsuite TurboTax Public Airbnb Connect with Shawn: Twitter | LinkedIn | Email HELP US OUT! Help us reach new listeners by leaving us a rating and review on Spotify! It takes less than 30 seconds and really helps our show grow, which allows us to bring on even better guests for you all! Thank you – we really appreciate it! Learn more about your ad choices. Visit megaphone.fm/adchoices Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm

Transcript

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0:00.0	You're listening to TIP.
0:02.8	Hey, hey, welcome back to the Intrinsic Value podcast.
0:05.8	After breaking down Alphabet last week, I'm taking a look at a company that could really
0:10.1	not be any more different.
0:11.8	This business sells eggs.
0:13.8	That's it.
0:14.6	That's what they do.
0:15.6	Immediately, that would be a turnoff for me, a reason to move on to the next opportunity.
0:21.1	After all, eggs are a commodity product with fierce competition.
0:25.1	Surely that is not the best pond to go fishing in for attractively valued long-term investments.
0:31.0	I think you'll be surprised to learn though about Vital Farms, ticker VITL, which is a leading
0:35.8	producer of pasture-raised egg products that has grown
0:39.0	revenues on average by 35% per year in the last five years. They have not gotten the memo that
0:45.3	an egg business isn't supposed to be doing so well, as the brand has accumulated something of a
0:49.8	cult following that loves the company's sustainably, ethically, and transparently produced eggs
0:54.7	that also just tastes better and look more appealing than your average factory farmed ones.
1:00.1	You're still skeptical, I don't blame you, but it's a story I don't think you want to miss.
1:04.7	By the way, before we get started, I want to mention that the Investors Podcast Network
1:08.3	is hosting two nights of free events in Omaha in May
1:11.7	if you're coming out to the Berkshire shareholder meeting.
1:14.3	Come out and meet me and other investors for free food and drinks at the Blatt, Beer and Table,
1:19.3	spelled B-L-A-T-T-T in downtown Omaha on Friday and Saturday night from 6 to 9 p.m.
	...

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