According to this article, https://www.sltrib.com/news/2022/07/...ays-off-staff/ Traeger is undergoing layoffs and the stock has tanked.
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People will do what humans typically do and try to explain outcomes like this on a singular issue. Operating a business is far more complicated than that. I would guess that over the next couple years (hopefully not more) we'll see similar problems in a variety of business sectors. -
I wonder how many companies experience the growth curve of microorganisms....Comment
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Maybe time to buy stocks. maybe not.
Are they downsizing or right sizing?
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Stopping their meal kit product? Good idea. Better option is to partner with a different company and let THEM handle a customized Traeger-branded kit rather than try to handle this themselves.
Moving manufacturing to Mexico? Could be worse.
Downsizing? Not unique to Traeger, and could/should help with better internal organization structure to build uponComment
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Sad to hear. They do make a good product, but maybe they just have more employees then they really should. Downsizing can be a good thing if done correctlyComment
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Weber is also struggling.
Weber shares tank as grill maker announces CEO departure amid disappointing sales
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Wow, COOK stock has gone from $31 to $3 in one year.
That type of stock drop can be a catalyst for a business to make fundamental business decisions in order to protect/serve their shareholders and retain value -- hence their work to cut costs.
More interesting would be if (some other manufacterer) decided to jump on that low share price to buy the company and merge Traeger into their current product line. Imagine what would happen if Weber or GBE decided to pounce and merge?Comment
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Many companies ramped up production to respond to increased demand/sales/profits during the peak of the pandemic. Now that they're finding that demand is decreasing they'll have to adjust staff/production.
Trager's problems seem to suggest there might be more going on with the company than just pandemic related supply/demand issues.Comment
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True, market could be saturated after the pandemic, how often do you buy a new pellet grill (talking normal people, not us around here). That pandemic peak will kill demand for years. Seems like there are a lot more manufacturers than there were 10 years ago too. I think I'd pass on the stock.Last edited by Murdy; July 27, 2022, 02:58 PM. -
maybe because their prices are WAY out of line compared to similar quality/capability devices? I can justify paying more for a brand name I know, I can't justify paying more than 50% more especially when you get less. Instead of a top price tier bells and whistles grill, they should have focused on a stainless mid-range cooker. There's a lot of buyers in that $1000-$1500 range and RecTeq is scooping almost all of them up with the 700, 1070, and 1250 models
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Grow your gardens, fill your freezers, buy lead not gold, and start digging for saltpeter and sulfur.Last edited by CaptainMike; July 27, 2022, 01:56 PM.Comment
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Their financials are a train wreck. Sales up 44%, margins up 29%, but SG&A MORE THAN DOUBLED, wiping out all the increased margin and another $120M on top of it. I’d really like to see the details…Comment
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Just imagine if Traeger had Tribbles...Comment
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from the article:Originally posted by bbqLuv View Post
After peaking at just more than $31 per share a month after the company went public in 2021, the company’s stock value has gradually dropped to about $3.70 per share today.
Ouch. And this...
Andrus recounts that he arrived at work in 2014 to find one of the company trucks was on fire — he believed it was due to arson, he wrote. At the time, Andrus had recently announced that the company would outsource delivery to UPS and laid off several dozen trucking employees. "The news hadn’t gone over well," Andrus wrote.
Um...
The article doesn't give a stated reason(s) for the layoffs, but this sounds like a company that is still finding its way and ridding itself of a lot of toxicity, may have expanded into side businesses that sapped focus (a mealkit line? Really?) and which is likely seeing sales turn down fro the highs of the pandemic if they saw a pandemic fueled boost. If they saw soft sales in the spring, when people usually buy a new grill for the upcoming season, then you get... this.
Before everyone goes into doom and gloom mode on the economy, let's consider that this is a sector that has a finite market (as we talked about in the Weber thread, most people only want 1, MAYBE 2 cookers) and a lot of time C-suite people will use and headwinds as a means to clear out marginal people or products.
It's a lack common mistake to launch a lot of 'maybe this will work' initiatives when times are booming because you can invest in those and take on more risk if your core businesses are doing well. When the core slows, you realize that the new initiatives aren't supporting themselves. And.... 🪓Last edited by rickgregory; July 27, 2022, 01:54 PM.Comment
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Like was mentioned in the Weber discussion by others, how many people bought Traegers in 2020-2021? Traeger likely grew their staff to accommodate thinking they’d keep selling at that pace and now most people that wanted one probably have them and won’t need another for years. Most people don’t ‘collect’ grills like us weirdos.Comment
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