Freshpet, Inc. to Report Fourth Quarter and Full Year 2025 Results on Monday, February 23, 2026

Over the last six months, Freshpet’s shares have sunk to $63.74, producing a disappointing 6.1% loss - a stark contrast to the S&P 500’s 13.3% gain. This may have investors wondering how to approach the situation.

Is there a buying opportunity in Freshpet, or does it present a risk to your portfolio? Dive into our full research report to see our analyst team’s opinion, it’s free for active Edge members.

Why Is Freshpet Not Exciting?

Even with the cheaper entry price, we're swiping left on Freshpet for now. Here are three reasons there are better opportunities than FRPT and a stock we'd rather own.

1. Fewer Distribution Channels Limit its Ceiling

With $1.08 billion in revenue over the past 12 months, Freshpet is a small consumer staples company, which sometimes brings disadvantages compared to larger competitors benefiting from economies of scale and negotiating leverage with retailers. On the bright side, it can grow faster because it has a longer list of untapped store chains to sell into.

2. Cash Burn Ignites Concerns

If you’ve followed StockStory for a while, you know we emphasize free cash flow. Why, you ask? We believe that in the end, cash is king, and you can’t use accounting profits to pay the bills.

While Freshpet posted positive free cash flow this quarter, the broader story hasn’t been so clean. Freshpet’s demanding reinvestments have consumed many resources over the last two years, contributing to an average free cash flow margin of negative 3.1%. This means it lit $3.14 of cash on fire for every $100 in revenue.

3. Previous Growth Initiatives Haven’t Paid Off Yet

Growth gives us insight into a company’s long-term potential, but how capital-efficient was that growth? Enter ROIC, a metric showing how much operating profit a company generates relative to the money it has raised (debt and equity).

Freshpet’s five-year average ROIC was negative 0.8%, meaning management lost money while trying to expand the business. Its returns were among the worst in the consumer staples sector.

Final Judgment

Freshpet’s business quality ultimately falls short of our standards. After the recent drawdown, the stock trades at 44.4× forward P/E (or $63.74 per share). This multiple tells us a lot of good news is priced in - we think there are better stocks to buy right now. We’d suggest looking at one of Charlie Munger’s all-time favorite businesses.

The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let’s take a look at how perishable food stocks fared in Q3, starting with Tyson Foods .

The perishable food industry is diverse, encompassing large-scale producers and distributors to specialty and artisanal brands. These companies sell produce, dairy products, meats, and baked goods and have become integral to serving modern American consumers who prioritize freshness, quality, and nutritional value. Investing in perishable food stocks presents both opportunities and challenges. While the perishable nature of products can introduce risks related to supply chain management and shelf life, it also creates a constant demand driven by the necessity for fresh food. Companies that can efficiently manage inventory, distribution, and quality control are well-positioned to thrive in this competitive market. Navigating the perishable food industry requires adherence to strict food safety standards, regulations, and labeling requirements.

The 10 perishable food stocks we track reported a satisfactory Q3. As a group, revenues beat analysts’ consensus estimates by 1.5% while next quarter’s revenue guidance was in line.

In light of this news, share prices of the companies have held steady. On average, they are relatively unchanged since the latest earnings results.

Tyson Foods

Started as a simple trucking business, Tyson Foods is one of the world’s largest producers of chicken, beef, and pork.

Tyson Foods reported revenues of $13.86 billion, up 2.2% year on year. This print fell short of analysts’ expectations by 1.1%, but it was still a very strong quarter for the company with an impressive beat of analysts’ EBITDA estimates and a beat of analysts’ EPS estimates.

"We delivered year-over-year growth in sales, adjusted operating income and adjusted earnings per share, reflecting the strength of our multi-protein, multi-channel portfolio," said Donnie King, President and CEO of Tyson Foods.

Interestingly, the stock is up 10.1% since reporting and currently trades at $57.80.

Best Q3: Mission Produce

Founded in 1983 in California, Mission Produce grows, packages, and distributes avocados.

Mission Produce reported revenues of $319 million, down 10% year on year, outperforming analysts’ expectations by 8.5%. The business had an incredible quarter with a solid beat of analysts’ gross margin estimates and an impressive beat of analysts’ EBITDA estimates.

Mission Produce delivered the biggest analyst estimates beat among its peers. Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 11.6% since reporting. It currently trades at $11.61.

Weakest Q3: Cal-Maine

Known for brands such as Egg-Land’s Best and Land O’ Lakes, Cal-Maine produces, packages, and distributes eggs.

Cal-Maine reported revenues of $922.6 million, up 17.4% year on year, falling short of analysts’ expectations by 3.9%. It was a disappointing quarter as it posted a significant miss of analysts’ adjusted operating income estimates and a significant miss of analysts’ EBITDA estimates.

Cal-Maine delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 12.4% since the results and currently trades at $82.45.

Read our full analysis of Cal-Maine’s results here.

Freshpet

Standing out from typical processed pet foods, Freshpet is a pet food company whose product portfolio includes natural meals and treats for dogs and cats.

Freshpet reported revenues of $288.8 million, up 14% year on year. This number topped analysts’ expectations by 1.7%. It was a very strong quarter as it also produced a beat of analysts’ EPS estimates and a solid beat of analysts’ adjusted operating income estimates.

The stock is up 32.4% since reporting and currently trades at $64.72.

Read our full, actionable report on Freshpet here, it’s free for active Edge members.

Pilgrim's Pride

Offering everything from pre-marinated to frozen chicken, Pilgrim’s Pride produces, processes, and distributes chicken products to retailers and food service customers.

Pilgrim's Pride reported revenues of $4.76 billion, up 3.8% year on year. This print surpassed analysts’ expectations by 0.8%. Overall, it was a very strong quarter as it also logged an impressive beat of analysts’ EBITDA estimates and a solid beat of analysts’ gross margin estimates.

The stock is up 4.1% since reporting and currently trades at $39.69.

Read our full, actionable report on Pilgrim's Pride here, it’s free for active Edge members.