Value Investigator
Quality-Growth Investor, Fundamental Research & Portfolio Strategy
HelloFresh's Pride Month ad risks alienating at least half its subscriber base, a fatal misstep for a food company that makes it arguably a junk stock now. The ad, confirmed as real, pitched its product as helping prepare for anal sex, linking its food boxes with feces. Unlike provocative ads that sell, this one damages the brand, and if one person was responsible, its control processes need rethinking. x.com x.com x.com x.comÂ
HelloFresh's capital allocation is a reason to lean toward selling, as its buyback program expired and it hints at fewer buybacks and possible acquisitions instead. Given the state of Factor and growth initiatives such as pet food and meat, more acquisitions make little sense, and it is unclear management has what it takes. Investor Relations has not answered complaints, and other opportunities look better despite a horrible price to sell. x.com x.com x.com x.comÂ
