Karat Packaging, Inc. (KRT)

In the past six months, Karat Packaging reported its Q2 2025 earnings, posting an EPS of $0.57, missing analysts' estimates of $0.60. For Q1 2025, the company posted an EPS of $0.32, beating the consensus estimate of $0.28. Q4 2024 earnings showed an EPS of $0.29, missing estimates of $0.37. Karat Packaging Inc. announced a proposed secondary offering of 1.5 million shares of common stock by certain members of its management team. The company has an annual dividend of $1.80 per share, with a yield of 7.20%, paid quarterly. Karat Packaging was upgraded to "Buy" from "Neutral" by BofA. Karat Packaging's stock was trading at $30.26 at the beginning of 2025 and has since decreased by 17.5%, trading at $24.96 as of October 2025.

While specific seasonal fluctuations in demand for Karat Packaging's products are not explicitly detailed, several trends indicate consistent and growing demand. The company benefits from the increasing packaging requirements driven by the rise in e-commerce activities and steady demand from consumer-oriented end markets. A key catalyst for Karat Packaging is the growing preference for food delivery, take-out, and at-home dining. Furthermore, the rising demand for sustainable and eco-friendly packaging options is a significant driver of demand for Karat Packaging's offerings.

Karat Packaging, Inc. is a specialty distributor and manufacturer of single-use disposable products for the restaurant and foodservice industries, offering a diverse range of products made from plastic, paper, biopolymer-based, and other compostable forms. The company operates within the Consumer Discretionary sector, specifically in the Packaging & Containers industry, also categorized under Plastic Products. Its product offerings include food and take-out containers, bags, boxes, tableware, cups, lids, cutlery, and straws. Karat Packaging also distributes specialty beverage ingredients and provides customized solutions, including new product development, design, printing, and logistics services. Its customer base includes national and regional distributors, restaurant chains, retail establishments, and online customers.

Karat Packaging Inc. primarily operates across the United States, serving national and regional distributors, restaurant chains, retail establishments, and online customers. The company is actively diversifying its sourcing footprint and aims to expand across other Asian countries and Latin America to enhance supply-chain resilience and flexibility.

Karat Packaging Inc. maintains a positive brand reputation, particularly driven by the increasing demand for its eco-friendly products. The company is well-positioned to capitalize on the growing pressure globally to ban Styrofoam and single-use plastics, leading to increased demand for compostable alternatives. Karat Packaging's efforts to ramp up manufacturing capabilities and boost online sales also contribute to its positive market perception.

Insiders hold 66.10% of Karat Packaging Inc.'s stock, while institutions hold 25.20%. Major institutional owners include UBS Group AG, BlackRock, Inc., Vanguard Group Inc, Wasatch Advisors Inc, Ranger Investment Management, L.P., Millennium Management Llc, Acadian Asset Management Llc, and De Lisle Partners LLP. The largest individual shareholder is Marvin Cheng, who owns 59.86% of the company, and Alan Yu, the Chief Executive Officer, holds 30.37%.