Sovos Brands, Inc. Stock Price, News & Analysis

On January 27, 2023, Sovos Brands announced a voluntary recall of specific 16-ounce jars of Rao’s Made for Home Slow Simmered Soup, Chicken & Gnocchi due to the potential presence of undeclared egg, posing a risk to those with egg allergies. The affected jars, labeled incorrectly as Chicken & Gnocchi, actually contain vegetable minestrone. These products were distributed across multiple U.S. states between December 8, 2022, and January 27, 2023. The recalled jars are identifiable by the code date 2320 MDV 046030Z009 and a Best By date of NOV 15 2024. Consumers are advised to return the product for a full refund.

Sovos Brands (Nasdaq: SOVO) announced the divestiture of its Birch Benders brand to Hometown Food Company, enhancing its focus on core brands like Rao’s and Noosa. The transaction, whose financial details remain undisclosed, is expected to have no impact on Sovos' fiscal 2022 net sales or adjusted EBITDA. This strategic move aims to accelerate Rao’s growth toward $1 billion in net sales. Sovos Brands continues to position itself as a leading consumer-packaged food company with offerings that include pasta sauces, frozen entrées, and yogurts.

On January 9, 2023, Hometown Food Company announced its acquisition of Birch Benders from Sovos Brands (NASDAQ: SOVO). The transaction aims to enhance Hometown's position in the better-for-you food sector. Founded in 2011, Birch Benders offers a wide range of pancake and waffle mixes, including keto and organic products. Hometown's portfolio includes iconic brands like Pillsbury and Funfetti, and this acquisition broadens its market footprint and strengthens its commitment to healthier breakfast options. The financial terms of the deal remain undisclosed.

Sovos Brands reported a strong performance for Q3 2022, with net sales of $208.9 million, reflecting a 16.9% increase year-over-year driven by robust pricing growth. The Rao's franchise continues to lead sales with a potential trajectory toward $1 billion in annual sales. Adjusted EBITDA rose 14.5% to $29.5 million, despite a slight dip in margin. The company has raised its full-year net sales guidance to $840-$850 million, while maintaining adjusted EBITDA guidance at $116-$122 million. Net income was $1.5 million, compared to a loss last year.

Sovos Brands, Inc. (Nasdaq: SOVO) will report its third-quarter results for the period ending September 24, 2022, on November 2, 2022, at 4:30 p.m. ET. A live webcast of the earnings conference will be accessible on the company's Investor Relations website, where it will also be archived for later access. Sovos Brands specializes in acquiring and developing consumer-focused food brands, offering a wide range of products such as pasta sauces and frozen meals, aiming to deliver authentic and high-quality food experiences to consumers.

Sovos Brands, Inc. (Nasdaq: SOVO) has appointed E. Yuri Hermida as its new Chief Growth Officer, effective at the end of October 2022. Hermida, currently an Executive Vice President at Reckitt, will lead the company's sales, marketing, and business segments as part of its growth strategy. CEO Todd Lachman expressed confidence in Hermida's track record of scaling consumer brands, which is expected to enhance Sovos's market presence. Hermida has over 20 years of experience at P&G, making him well-suited to drive the company’s vision of delivering quality food products.

Sovos Brands, listed under the ticker SOVO, announced participation in two key investor conferences in September 2022. The first event is the Barclays Global Consumer Staples Conference in Boston on September 6, featuring a fireside chat at 3:45 p.m. ET. The second event is the Piper Sandler Growth Frontiers Conference in Nashville on September 14, with a fireside chat at 3:00 p.m. ET. Both sessions will be available for live webcast and replay on the Company's Investor Relations website.

Sovos Brands, Inc. (SOVO) announced a pricing of an underwritten secondary public offering of 8,500,000 shares at $14.00 per share, set to close on August 15, 2022, pending customary conditions. The offering consists entirely of secondary shares, with proceeds going to the selling stockholders. An option for underwriters to purchase an additional 1,275,000 shares is included. J.P. Morgan and Goldman Sachs are leading the offering. This registration was declared effective by the SEC, and no solicitation to buy these securities is made prior to registration.

Sovos Brands, Inc. (Nasdaq: SOVO) announced a secondary public offering of 8,500,000 shares of its common stock by certain stockholders. The offering includes a 30-day option for underwriters to purchase an additional 1,275,000 shares. Proceeds will go entirely to the selling stockholders. J.P. Morgan and Goldman Sachs are the lead underwriters for this offering. A registration statement has been filed but not yet effective, meaning shares cannot be sold until approval.