Will HelloFresh’s (XTRA:HFG) PetSmart Deal Reshape Its Diversification Ambitions?

• The Pets Table, HelloFresh’s premium direct-to-consumer pet food brand, has announced its launch in PetSmart stores and on PetSmart.com, expanding its retail distribution network in North America.
• This move signals HelloFresh’s drive to diversify beyond meal kits, leveraging growth in its pet food segment and broadening access through leading retail partners.
• To assess how this expanded retail partnership strengthens HelloFresh’s diversification efforts, we’ll explore the implications for its overall investment narrative.

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HelloFresh Investment Narrative Recap

To be a shareholder in HelloFresh, you need to believe in the company’s ability to rebound from recent declines in revenue and order volumes by successfully diversifying into new categories, such as pet food. The Pets Table’s partnership with PetSmart expands HelloFresh’s reach beyond meal kits, but this news alone is not likely to materially change the main short term catalyst, which remains restoring growth in its core ready-to-eat (RTE) offerings; the most significant risk still centers on customer acquisition challenges and top-line pressure.

Recently, HelloFresh lowered its 2025 revenue guidance, citing weaker-than-expected RTE sales, which reinforces the importance of expanding into adjacent categories like pet food to soften the impact of slowdowns in core segments. This PetSmart launch offers incremental diversification, yet execution in its core business and restoring its top-line trajectory remain fundamental to its overall outlook.

However, before considering HelloFresh’s path forward, it is important for investors to be aware that, despite product diversification, ongoing declines in new customer acquisition and order volumes could still...

Read the full narrative on HelloFresh (it's free!)

HelloFresh's narrative projects €7.3 billion revenue and €221.0 million earnings by 2028. This requires a 0.1% yearly revenue decline and a €393.1 million increase in earnings from €-172.1 million today.

Uncover how HelloFresh's forecasts yield a €10.82 fair value, a 49% upside to its current price.

Exploring Other Perspectives

Simply Wall St Community members estimate HelloFresh’s fair value between €5.90 and €21.54 across nine perspectives, hinting at strong disagreement about its prospects. With ongoing revenue pressure and RTE headwinds, you can explore these differing views to see how they inform expectations for HelloFresh’s future performance.

Explore 9 other fair value estimates on HelloFresh - why the stock might be worth 19% less than the current price!

Build Your Own HelloFresh Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your HelloFresh research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.
• Our free HelloFresh research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate HelloFresh's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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