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Arcadia Biosciences (RKDA) Sells GoodWheat Brand to Above Food

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Arcadia Biosciences (RKDA - Free Report) announced that it inked a deal with Above Food Corp. to sell its GoodWheat brand for $4 million. This move will allow Arcadia to scale its wheat IP by leveraging Above Food's vertically integrated farm-to-fork supply network.

GoodWheat, which was launched in 2018, uses Arcadia's unique, patented and healthier wheat grain, which is naturally higher in fiber and protein. In June 2022, the company launched five variations of GoodWheat pasta, followed by six varieties of pancake mixes and single-serve Quikcakes in August 2023. In November 2023, three different versions of mac and cheese were introduced. GoodWheat products are currently available on more than 3,500 shelves around the country and online.

In the first quarter of 2024, the GoodWheat brand expanded its distribution of pancake and waffle mixes by a few hundred locations. GoodWheat Mac & Cheese was available nationwide online in first-quarter 2024 in three varieties — Classic Cheddar, White Cheddar and Three Cheese.

The GoodWheat brand complements Above Food's nutrient-dense, plant-based consumer goods and specialized ingredient portfolios. The agreement will allow RKDA to monetize its IP early, while continuing to pursue other crop licensing and royalty streams.

The company reported an adjusted loss of $1.78 per share in the first quarter of 2024, which was narrower than the Zacks Consensus Estimate of a loss of $2.52. This compares to a loss of $3.86 in the year-ago quarter. Net sales were $1.26 million in the quarter under review, which marked a 1.9% increase from the year-ago quarter, driven by higher GoodWheat and Zola sales. The top line beat the Zacks Consensus Estimate of $1 million.

Price Performance

RKDA shares have lost 28.7% over the past year against the industry's 15.4% growth.

 

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Zacks Rank & Stocks to Consider

Arcadia Biosciences currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks from the basic materials space are Carpenter Technology Corporation (CRS - Free Report) , Ecolab Inc. (ECL - Free Report) and ATI Inc. (ATI - Free Report) . CRS sports a Zacks Rank #1 (Strong Buy) at present, and ECL and ATI have a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Carpenter Technology’s 2024 earnings is pegged at $4.18 per share. The consensus estimate for 2024 earnings has moved 6% north in the past 60 days. It has an average trailing four-quarter earnings surprise of 15.1%. CRS shares have gained 134.9% in a year.

The Zacks Consensus Estimate for Ecolab’s 2024 earnings is pegged at $6.59 per share, indicating an increase of 26.5% from the prior year’s reported number. It has an average trailing four-quarter earnings surprise of 1.3%. ECL shares have gained 34.5% in a year.

The Zacks Consensus Estimate for ATI’s 2024 earnings is pegged at $2.41 per share. The Zacks Consensus Estimate for ATI’s current-year earnings has been revised 3% north in the past 60 days. It has an average trailing four-quarter earnings surprise of 8.3%. The company’s shares have rallied 65.9% in the past year.


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