Traeger's High-Stakes Bet: A Reverse Split to Save Its Stock

SALT LAKE CITY, UT – March 12, 2026 – Traeger, Inc. (NYSE: COOK), the company that created and popularized the wood pellet grill category, has announced a drastic measure to rescue its plummeting stock price: a 1-for-50 reverse stock split. The move, set to take effect after market close on March 17, is a direct response to the threat of being delisted from the New York Stock Exchange.

While the company frames the action as a way to broaden its appeal to institutional investors and enhance trading liquidity, the maneuver shines a harsh spotlight on the deep-seated financial and operational challenges plaguing the once-hot brand. With its stock down 66% over the past year, the reverse split is less a strategic offensive and more a desperate defensive play to maintain its place on the big board.

A Necessary Move to Avoid Delisting

The primary driver for the reverse split is compliance. Traeger is in breach of the NYSE's continued listing standards, specifically Section 802.01C, which requires a minimum average closing price of $1.00 per share over a 30-day trading period. The company first received a non-compliance notice from the exchange on November 19, 2025, after its stock languished below the critical threshold.

Despite the warning, the grill maker's shares failed to recover, triggering a second notice on March 5, 2026. With the stock closing at just $0.59 on the day of the announcement, the reverse split became an unavoidable step to artificially inflate the share price and stave off delisting. When trading begins on a split-adjusted basis on March 18, a stock that was trading for pennies will suddenly be priced 50 times higher, though the overall value of an investor's holding will not change at that moment.

According to the press release, every 50 shares of common stock will be automatically combined into one new share. Stockholders who would be left with fractional shares will be paid out in cash. The company stated the move “will not alter any stockholder’s percentage ownership in the Company,” except for these minor adjustments.

Under the Hood of a Struggling Brand

A plunging stock price is often a symptom of deeper illness, and Traeger's recent financial performance reveals a company grappling with significant headwinds. The decision for the split came just a week after the company released its full-year 2025 earnings, which painted a grim picture.

For the full year, Traeger reported a 7.4% decrease in total revenues to $559.5 million. More alarmingly, the company posted a net loss of $115.2 million, a dramatic widening from the $34.0 million loss in 2024. This figure was bloated by a $74.7 million goodwill impairment charge, a non-cash expense that signals the company believes the value of certain assets has declined significantly.

The balance sheet offers little comfort. Traeger is burdened with $403 million in total debt. Its Altman Z-Score, a metric used to predict the likelihood of bankruptcy, sits at -0.78, placing it firmly in the “distress zone.”

Looking ahead, the company's 2026 guidance for sales and earnings also fell short of analyst expectations. In response to these pressures, Traeger has initiated a restructuring plan dubbed “Project Gravity,” which includes workforce reductions and an exit from most of its direct-to-consumer business. However, the full benefits of these cost-saving measures are not expected to materialize until 2027 or 2028, leaving a long and uncertain road ahead.

A History of Unfavorable Odds

While Traeger hopes the reverse split will stabilize its stock and attract a new class of investors, history suggests such moves are fraught with peril. A reverse stock split is often perceived by the market as a last resort, a financial sleight of hand that fails to address the fundamental issues that caused the stock's decline in the first place.

Academic research and market data are overwhelmingly negative. A comprehensive study by researchers at NYU's Stern School of Business and Emory University found that, on average, shares of companies that undergo reverse splits significantly underperform their peers. The study revealed an average underperformance of 15.6% in the first year post-split, which ballooned to 36% in the second year and 54% in the third.

While rare success stories like Priceline (now Booking Holdings) and Citigroup are often cited as examples of post-split recovery, they are the exceptions that prove the rule. For every Priceline, there are dozens of other companies whose reverse splits were merely a prelude to further declines, bankruptcy, or an eventual delisting. The odds are stacked against Traeger reversing its fortunes through this measure alone.

A Changing Competitive Landscape

The irony of Traeger's situation is that it operates in a growing market. The global wood pellet grill industry is projected to expand at a healthy clip, fueled by the enduring popularity of outdoor cooking. As the category's creator and a dominant brand, Traeger should be riding this wave of growth.

Instead, the company has struggled to find its footing in the post-pandemic market. Analysts point to a delayed consumer replacement cycle for big-ticket items and increased price sensitivity among shoppers. Traeger’s own price increases on some lines have made it more vulnerable to lower-priced competitors who have flooded the market.

This move forces a difficult question for the brand: how does a company that defines itself as a “category leader” reconcile that identity with a stock price so low it requires a 1-for-50 reverse split to remain on a major exchange? The disconnect between its premium brand image and its distressed financial reality is a gap that will be difficult to close.

For now, investors and analysts are reacting with caution. Following the announcement, Piper Sandler lowered its price target on the stock to just $0.75, while Telsey cut its target to $1.00, both maintaining neutral ratings. The immediate after-hours trading saw shares tumble further, indicating that the market views the split not as a solution, but as a confirmation of the company's deep-seated problems. For Traeger, the reverse split is not the end of its troubles, but rather the beginning of a difficult and uncertain chapter in its corporate story.