Smart for Life (NASDAQ:SMFL) stock is up a staggering 50% today after announcing a delivery deal for ice cream bars.
This morning Florida-based health foods company announced it has executed a strategic agreement with CloudKitchens for a new line of protein ice cream bars. According to the nutraceutical company, the new partnership will allow for high-speed delivery of its ice cream bars through several markets and via food delivery apps like UberEats, GrubHub, and DoorDash in major markets in the U.S. like New York, Miami, and Los Angeles.
“We are excited to partner with CloudKitchens to accelerate the nationwide rollout of our new, proprietary line of innovative, high protein ice cream,” said Darren Minton, Chief Executive Officer at Smart for Life. “We launched this new functional food product category last month and believe it has tremendous growth potential.
CloudKitchens is essentially a “ghost kitchen,” that is, a restaurant with no dine-in options that operates its own delivery and pick-up service.
Today’s news clearly has investors encouraged over what’s to come.
SMFL Stock Enjoys Ice Cream-Fueled Reversal
Unfortunately, Smart for Life’s stock has seen better days, even after Wednesday’s ice cream climb.
Indeed, SMFL is down more than 70% year-to-date, falling from $12.50 to just $3.50 per share over just the first five months of the year. This is in no small part due to the company’s financial results over the past few quarters. In its March earnings report for its fiscal Q4 2022, the company announced an earnings per share (EPS) loss of $9.50 per share. This represents an -1800% earnings bust compared to the consensus EPS of 50 cents.
Today’s news, however, could be the start of a notable uptrend for the company. At least, that’s what Minton believes:
“We believe we are pioneering a new concept in frozen foods as our line of protein ice cream bars are formulated to be high in protein, high in fiber, and provide sustained energy, all with a delicious taste in a completely novel form factor.”
Smart for Life’s high protein ice cream bars will release in a variety of flavors, including vanilla-chocolate, cookies & cream, and strawberry.
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On the date of publication, Shrey Dua did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.