Blue Buffalo Finds Love on Wall Street
Blue Buffalo might have had issues with pet owners over the ingredients in some of its products, but the company is getting plenty of love from one quarter: Wall Street.
The natural food giant stock has risen more than 26 percent so far this year. Last week the company reported its numbers for the fourth quarter of 2016, which showed sales increased 11.4 percent to $265 million for the three months with a gross margin of 41.9 percent.
This week Investor’s Business Daily highlighted Blue Buffalo as a food stock to watch, pointing out that since 2010, the company had enjoyed a compounded growth rate of 40 percent. The paper points out for market watchers: “Blue Buffalo caters to customers who want pet food containing a high percentage of natural meat, fruit and vegetable ingredients. The strategy is working wonders: Sales have mushroomed.”
Against sales for 2015 of $1.03 billion that $32 million settlement doesn’t seem to onerous.