Mama’s Creations Posts 55% Revenue Surge, Eyes M&A with $138M War Chest — Mama's Creations, Inc.

Event summary

Revenue grew 55% YoY to $54.6M, net income doubled to $2.6M, and adjusted EBITDA rose 69% to $5.5M in Q2 FY2027.
Launched over a dozen new placements, with 60% using chicken 'bottoms', primarily cross-sells in existing banners like Publix and Albertsons.
Selected for Costco’s multi-vendor mailer across all eight regions, growing from $0.5M to $25M in annual business over four years.
Completed a $108.6M common stock offering, boosting cash position to $138.6M, positioning for M&A to hit $1B revenue target.
Opened East Rutherford expansion, adding critical storage and upgraded facilities to reduce outside storage fees.

The big picture

Mama’s Creations is capitalizing on the growing demand for fresh, prepared foods in retail channels, leveraging its vertical integration and cross-selling strategy to drive revenue growth. The company’s strong cash position and disciplined M&A approach position it to consolidate the fragmented deli prepared foods market, aiming to become a one-stop-shop platform for retailers. The strategic focus on operational efficiency and product innovation is likely to sustain its momentum in a competitive consumer goods landscape.

What we're watching

M&A Strategy: Whether Mama’s Creations can deploy its $138M cash war chest effectively to acquire accretive businesses that broaden its one-stop-shop platform.
Operational Leverage: The pace at which gross margin improves as new product launches move toward steady-state production and scale benefits materialize.
Retail Expansion: How the Kroger launch and expanded placements in other banners will impact revenue growth and operational efficiency.