Traeger Beats Q1 2022 Estimates, Reaffirms 2022 Guidance

Traeger grills (NYSE: COOK) is up in after hours trading following Q1 2022 earnings reported after market close. They reported revenue of $223.7 million in revenue and EPS of $0.17, both numbers beating analyst estimates. Despite their good quarter, they warned that Q1 benefitted from timing of shipments, and reaffirmed their previous full year 2022 guidance.

Unlike last quarter when they gave hints at the new Timberline, there were no new products mentioned in this earnings call. However, they did highlight the continued expansion of retailers for grills, rubs, sauces and pellets. We think they have some new consumables that they’ll be releasing in the near future and maybe even new grill technology for their lower models further down the road. From a strategy standpoint, they’ll likely want to get further away from the new Timberline release to avoid any cannibalization.

There were a couple takeaways from the investor deck accompanying their earning presentation. First, they updated their market opportunity from when they did their IPO. Based on updated data, they increased their estimation of the total US households by 2 million, their Total Addressable Market (TAM) by 1 million but then at the bottom of the funnel, they left their Serviceable Addressable Market (SAM) constant at 45 million. Due to sales since their IPO and their SAM remaining constant, it means that their market penetration increase by 1% to 6%. That’s probably not significant for earnings, but interesting that there was expansion at the top of the funnel that leaked out before it made it to their SAM.

The second takeaway is, much like Blackstone griddles, they are focused on their social media presence and believe this translates to brand enthusiasm. We too noticed their social media dominance, and even took the time to write an article about it. We’ll see if that does indeed translate to increased EPS in the future through higher sales and retention.