Mama's Creations Stock Climbs 28% Following Strong Financial Performance and Strategic Expansion

Shares of Mama’s Creations (NASDAQ: MAMA) surged 28% on Tuesday, driven by robust third-quarter results that demonstrated both operational efficiency and strategic growth initiatives. The deli-prepared food manufacturer’s financial performance exceeded market expectations, signaling strong momentum in the premium ready-to-eat category.

Financial Metrics Demonstrate Scaled Profitability

Mama’s Creations delivered compelling earnings growth in Q3, with adjusted EBITDA soaring 118% year-over-year to $3.8 million—a testament to the company’s ability to monetize expansion efforts. This growth was accompanied by a net income increase of 31.7% to $540,000, showcasing improved operational leverage.

On the revenue front, the company reported $47.3 million in quarterly sales, representing 50% year-over-year growth. This acceleration reflects both organic expansion and the strategic impact of the Crown 1 acquisition. Gross margins expanded to 23.6% from 22.6% in the prior year, indicating pricing power and cost management discipline as the company scales operations.

Acquisition Strategy Fuels Capacity and Market Access

The Crown 1 Enterprises acquisition, completed in September through a $17.5 million cash purchase from food distribution giant Sysco, represents a pivotal turning point for Mama’s Creations. The acquired business contributes $56 million in annual revenue and brings critical assets including expanded manufacturing capacity, new customer relationships, and cross-selling opportunities across existing distribution channels.

CEO Adam Michaels emphasized during the earnings call that the company’s geographic expansion coupled with targeted marketing investments has enabled market share gains that outpace industry categories. The integration of Crown 1’s capabilities positions Mama’s Creations to meet growing demand from both existing and new customer segments.

Retail Partnerships Accelerate Distribution

Recent retail placements represent another vector for near-term growth. Mama’s Creations secured new national positions at Target and Food Lion, complementing an ongoing promotional partnership with Costco. These placements are expected to significantly expand brand visibility and drive incremental sales throughout the coming quarters.

Long-Term Growth Trajectory

Management has articulated an ambitious vision, with Michaels highlighting a potential path to $1 billion in annual revenue. Given the company’s expanded manufacturing capacity, premium retail partnerships, and continued product innovation, the foundation appears in place to achieve sustained profitable growth with margin expansion ahead. The combination of organic momentum and acquisition-driven scale positions Mama’s Creations for extended performance, subject to broader economic conditions and competitive dynamics in the prepared foods sector.