Karat Packaging, Inc. (KRT)

In the past six months, Karat Packaging's stock experienced notable events, including the announcement of Q3 2025 earnings with an EPS of $0.37 and revenue of $124.52 million, although the stock declined due to a decrease in gross margin. The company declared a regular quarterly dividend of $0.45 per share, offering a dividend yield of approximately 7.03% and having raised its dividend for four consecutive years. KRT stock has traded between $20.61 and $33.89 over the past 52 weeks, showing recent positive momentum but underperforming the broader market over the past year.

While specific details on the nature of demand seasonality are not explicitly detailed, the company's stock performance has shown historical monthly return patterns, suggesting that some level of demand seasonality might exist and influence stock fluctuations. The growing preference for food delivery, take-out, and at-home dining is identified as a key catalyst for the company's products. Karat Packaging's recent performance indicates a slowdown in demand, with annualized revenue growth over the last two years being below its five-year trend.

Karat Packaging Inc. is a specialty distributor and manufacturer of disposable foodservice products and related items, serving national and regional restaurants and foodservice establishments across the United States. The company operates within the Industrials sector, specifically the Packaging & Containers industry, offering a wide range of products including food packaging, containers, tableware, and specialty food and beverage items. Karat Packaging provides customized solutions, encompassing new product development, design, printing, and logistics services, with key brands like Karat, Karat Earth, Tea Zone, and Total Clean.

Karat Packaging's primary geographic footprint is across the United States, where it supplies products to national and regional distributors, restaurant chains, retail establishments, and online customers. The company is also actively diversifying its sourcing footprint and reducing its reliance on sourcing from China.

In the past year, Karat Packaging has focused on strengthening its brand through strategic initiatives, emphasizing its "Karat Earth" brand for eco-friendly products to align with environmental awareness. The company is diversifying its supply channels and introducing new product lines. A shift towards more domestic sourcing could positively impact the company's operational reputation and supply chain resilience in the long term.

Karat Packaging Inc. has a mix of institutional and individual ownership. Major institutional shareholders include BlackRock, Inc., The Vanguard Group, Inc., Acadian Asset Management LLC, Ranger Investment Management, L.P., and Wasatch Advisors LP. CEO Alan Yu is the largest shareholder with a 30.3% stake, and Co-Founder Marvin Cheng holds 26.2%, collectively controlling more than half of the company's shares.