# Goodfood (FOOD)



## MrBlackhill (Jun 10, 2020)

I've been watching this one for a while. I should've bought it a few months ago for sector diversification. I still plan to buy it.

Any opinion?


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## Spudd (Oct 11, 2011)

I feel like they don't have a moat. What's to stop Sysco or some other huge company from crushing them like a bug, as Mr. Wonderful would say?


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## Jimmy (May 19, 2017)

MrBlackhill said:


> I've been watching this one for a while. I should've bought it a few months ago for sector diversification. I still plan to buy it.
> 
> Any opinion?


Another good find. I bought some awhile ago and am down a little. It was doing well during covid and I think w the vaccine now people will not be ordering food as much. I think this is now priced in though

It was a great deal w P/S of 2.2 and sales growing at 70%. They are also producing some cash flow too. Even if sales only grow at 30%  it still seems good value though there are better deals out there.

Like Converge lol. Up 38% since Oct 29.


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## MrBlackhill (Jun 10, 2020)

Spudd said:


> I feel like they don't have a moat.


Maybe. They sell meal kits, so people don't have to think about what to make for dinner, they just select through a list of meals and they recieve all the ingredients needed in exact quantity. They only have to cook it.

I don't think Sysco is into that business? Actually, I've never heard of them, so thanks for the information.


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## Spudd (Oct 11, 2011)

MrBlackhill said:


> Maybe. They sell meal kits, so people don't have to think about what to make for dinner, they just select through a list of meals and they recieve all the ingredients needed in exact quantity. They only have to cook it.
> 
> I don't think Sysco is into that business? Actually, I've never heard of them, so thanks for the information.


Sysco is a food service company, their business is providing prepared meals and ingredients to restaurants and institutions. They are not currently in the meal kit business but I'm just saying, they have a lot of the needed infrastructure already, so if they, or someone like them, decided to get into it, they could potentially undercut prices and steal a ton of business.

Even if a big company like that doesn't do it, there's nothing really to stop any other company from doing it. Hello Fresh was the leader in this space for a couple of years at least, and now these guys have come along and presumably stolen market share from them. What do they have that's so special that Hello Fresh can't steal some back? Or some new upstart can come and steal some?


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## MrBlackhill (Jun 10, 2020)

Spudd said:


> Sysco is a food service company, their business is providing prepared meals and ingredients to restaurants and institutions. They are not currently in the meal kit business but I'm just saying, they have a lot of the needed infrastructure already, so if they, or someone like them, decided to get into it, they could potentially undercut prices and steal a ton of business.
> 
> Even if a big company like that doesn't do it, there's nothing really to stop any other company from doing it. Hello Fresh was the leader in this space for a couple of years at least, and now these guys have come along and presumably stolen market share from them. What do they have that's so special that Hello Fresh can't steal some back? Or some new upstart can come and steal some?


Totally true. I absolutely have no clue what could make it outpace any competition or bigger names. I'd have to watch closely. I'd have to figure out the management style and strategy.

For instance, I don't know what made Metro totally outpace Loblaw since 2004 and becoming one of the best stocks on the TSX. (I place MRU in 2nd position right after CNR as the most stable long-term high-performance stocks)


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## Spudd (Oct 11, 2011)

MrBlackhill said:


> Totally true. I absolutely have no clue what could make it outpace any competition or bigger names. I'd have to watch closely. I'd have to figure out the management style and strategy.
> 
> For instance, I don't know what made Metro totally outpace Loblaw since 2004 and becoming one of the best stocks on the TSX. (I place MRU in 2nd position right after CNR as the most stable long-term high-performance stocks)


LOL, me neither. I hate shopping at Metro, the prices are ridiculous. And Food Basics (their discount arm) is trash compared to No Frills (in my opinion). Goes to show you can't always trust your own gut with investing.


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