The Intrinsic Value Podcast - The Investor’s Podcast Network

TIVP006: Vital Farms (VITL): Egg-cellent Value? w/ Shawn O'Malley

16 snips

Feb 9, 2025

Discover the fascinating world of Vital Farms, where pasture-raised eggs are not just a product, but a movement. The brand's commitment to ethical farming and customer loyalty has positioned it uniquely in a crowded market. Learn how they built a sustainable network of family farms and tackled greenwashing allegations. Dive into their impressive growth trajectory and pricing strategies that keep them ahead. Investors will find insights on the company’s intrinsic value and reasons why its stock may be a hidden gem.

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ANECDOTE

Grocery Store Inspiration

Shawn O'Malley's grocery store experience led him to analyze Vital Farms.
He was impressed by the quality and branding of their pasture-raised eggs.

INSIGHT

Premium Egg Positioning

Vital Farms has successfully positioned eggs, a commodity, as a premium product.
Their marketing emphasizes ethical farming, sustainability, and superior taste.

INSIGHT

Stakeholder Focus

Vital Farms prioritizes a stakeholder-centric approach, not just shareholder returns.
Their B Corp certification reflects their commitment to ethical and sustainable practices.

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In today’s episode, Shawn O’Malley (@Shawn_OMalley_) breaks down Vital Farms, a company that sells pasture-raised eggs with a cult-like following. Vital Farms missed the memo that eggs are supposed to be a commodity and instead has brought the “premium egg” market mainstream.

Shawn goes through how the company has scaled its business sustainably and ethically through a network of family farms, why the brand has such incredible customer loyalty, how they can continue growing, and why the stock may offer “egg-cellent” value to investors, plus so much more!

Prefer to watch? Click here to watch this episode on YouTube.

IN THIS EPISODE, YOU’LL LEARN

00:00 - Intro

07:20 - What makes the Vital Farms brand so special to consumers

15:15 - How Vital Farms built up a network of family farms from scratch

28:10 - How the company has leveraged its pricing power and customer loyalty to scale revenues dramatically

40:45 - What Vital Farms has done to fend off allegations of greenwashing

46:33 - What Vital Farms can do to keep expanding its business

51:57 - How to think about the company’s intrinsic value

52:15 - Why the stock appears undervalued relative to other fast-growing, pure-play consumer packaged goods companies

57:53 - Whether Shawn adds Vital Farms to The Intrinsic Value Portfolio

And much, much more!

*Disclaimer: Slight timestamp discrepancies may occur due to podcast platform differences.

BOOKS AND RESOURCES

Get smarter about valuing businesses in just a few minutes each week through our newsletter, The Intrinsic Value Newsletter.
Vital Farms pitch on the Value Investors Club forum.
Learn more about Vital Farms.
Check out tracing egg cartons with Vital Farms
Matt O’Hayer’s interview with CNBC.
Attend the 2025 Berkshire Hathaway shareholder meeting and meet-ups with The Investors Podcast Network
Check out the books mentioned in the podcast here.
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