Karat Packaging, Inc. (KRT)

Karat Packaging has experienced several stock events, including a proposed secondary offering in June 2025. The company reported mixed Q2 2025 earnings, with some sources indicating a miss and others a beat of analyst estimates. Bank of America downgraded Karat Packaging's stock rating in November 2025. Q3 2025 earnings also missed expectations, leading to a stock decline despite revenue growth. Karat Packaging maintains an active quarterly dividend program.

Demand for Karat Packaging's products is closely tied to the restaurant and foodservice industry. The company experienced a boom in demand during the COVID-19 pandemic due to increased take-out and delivery services, and the growing preference for these services is expected to continue positively influencing Karat Packaging's operating results. The company's diverse customer base helps to reduce concentration risk.

Karat Packaging, Inc. is a specialty distributor and manufacturer of single-use disposable products for the restaurant and foodservice industries, operating within the Consumer Cyclical sector. The company offers a diverse range of products made from plastic, paper, biopolymer-based, and other compostable materials, including food packaging, take-out containers, tableware, and specialty food and beverage items. Karat Packaging also provides services like new product development, design, printing, and logistics, with brands such as Karat, Karat Earth, Tea Zone, and Total Clean.

Karat Packaging Inc. is headquartered in Chino, California, with its primary market being the United States, supplying national and regional restaurant chains, distributors, retail establishments, and online customers. The company has experienced double-digit growth across major markets, particularly in Texas and California, and employs a global strategic sourcing model.

Karat Packaging has cultivated a positive brand reputation, particularly through its focus on sustainability. The company's Karat Earth brand emphasizes eco-friendly products made from renewable resources, aligning with growing consumer demand and regulatory tailwinds. This strategic shift towards sustainable packaging positions Karat Packaging favorably in the market, and there have been no specific events reported in the past year that negatively impacted Karat Packaging's overall brand reputation.

Karat Packaging Inc. exhibits a mixed ownership structure with significant insider holdings. Insiders own 56.80% of the company's stock, while institutional shareholders hold approximately 29.74% and retail investors hold around 23.03%. Major individual owners include Marvin Cheng and Alan Yu. Major institutional owners include BlackRock, Inc. and Vanguard Group Inc.