Organic egg giant Vital Farms (VITL) told investors on Thursday that the bird flu ripping through US farms right now will keep pressure on supply to start the year, but that shortages should ease later in 2025.
“Industry supply will remain under pressure to start the year due to the impact of HPAI on poultry flocks across the United States,” Vital Farms CEO Russell Diez-Canseco said in a release.
“We have experienced supply constraints to start the year. However, as the year progresses, we believe the supply chain investments we made in 2024 and into 2025 will begin bearing fruit.”
In its fourth quarter ended Dec. 29, the company reported revenue rose 22.2% to $166 million. For the full-year, revenues tallied $606 million. The company expects full-year 2025 revenues to be “at least” $740 million.
Shares were up as much as 5% early Friday. The stock has lost about 13% so far this year but is up close to 90% over the last 12 months.
Egg shortages and a surge in egg prices have been one of the biggest economic stories for consumers to start 2025. In January, the average price of a dozen eggs in the US hit a record $4.95, up 15.2% over the prior month and 53% from the same month last year.
And as politicians, economists, and investors learned vividly during the post-pandemic inflation boom, consumers dislike many things about inflation, but nothing stings quite like spiking grocery prices.
Especially for a household staple like eggs.
