Home Bistro Inc. Sector Heats Up on Big IPO News and Acquisitions

Over the course of the past few years, the ready-to-eat food sector has grown by leaps and bounds. Many companies are now vying for the top spot in that space and perhaps one of the more intriguing companies in the sector is Home Bistro Inc. (OTC:HBIS). 

The company is engaged in delivering ready-to-eat, chef-prepared gourmet meals to its customers. Last month, the “heat and eat” meals segment got a major boost after it emerged that meal kit behemoth HelloFresh completed the acquisition of Factor75 Inc. It is a significant development since it indicates the possibilities of the “ready to eat” segment of the food delivery sector. 

HelloFresh provides raw ingredient meal kits and it has grown its business considerably. However, a move into the heat and eat industry signifies that it sees promise in this space. In such a situation, it makes Home Bistro a company worth watching. The DoorDash IPO this week has further strengthened the argument in favor of new-age food companies. 

The food delivery company saw its share jump by as much as 78% upon listing earlier this week and it indicates that investors are highly optimistic about the future of the industry. The stock had been listed for $102 a share in its initial public offering but once trading opened on the New York Stock Exchange it soared to as much as $182 a share. 

Although it is true that meal kits, heat and eat meals and food delivery are distinctly different segments and business models, it cannot be denied that the possibility of acquisition is always there. DoorDash is currently the biggest operator in the food delivery space and has managed to open up a gap against competitors like Grubhub and UberEats, among others. In this scenario, it’s becoming clear that food delivery is here to stay. 

Consequently, the demand for home-delivered, heat and eat gourmet meals is also on the rise. That brings us back to the possibilities for Home Bistro, which has managed to record impressive growth in recent times. 

The Company recently released its financial results for the three-month period that ended on September 30 and also for the first nine months of the year. In the three-month quarter ended on September 30, 2020, the Company reported year on year growth of 54%, while revenue grew by 59% year on year during the first nine months of 2020. 

According to the Home Bistro Chief Executive Officer, Zalmi Duchman, the improved performance of Home Bistro during these periods was primarily due to the decision to bring its fulfilment and food preparation operations, in-house, which should also help Home Bistro  expand its profit margins. 

The acquisition of a peer in the heat and eat meal space (Factor75) is a significant event in this segment. HelloFresh completed the acquisition in a deal worth $277million. Who knows what will happen in the future, but the trend looks positive for Home Bistro.

About the Author

Stuart Smith is the CEO and Founder of SmallCapVoice.com. SmallCapVoice.com. is a recognized corporate investor relations firm, with clients nationwide, known for its ability to help emerging growth companies build a following among retail and institutional investors. SmallCapVoice.com utilizes its stock newsletter to feature its daily stock picks,  audio interviews, as well as its clients’ financial news releases. SmallCapVoice.com also offers individual investors all the tools they need to make informed decisions about the stocks they are interested in. Tools like stock charts, stock alerts, and Company Information Sheets can assist with investing in stocks that are traded on the OTC BB and Pink Sheets. To learn more about SmallCapVoice.com and their services, please visit us here.


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