In this piece, we’ll take a look at the 5 Biggest Pet Food Companies in the World. For more such companies, go to 15 Biggest Pet Food Companies in the World.
5. Petco Health and Wellness Company, Inc. (NASDAQ:WOOF)
2021 annual revenue: $5.8 billion
Petco Health and Wellness Company, Inc. (NASDAQ:WOOF) is a pet food and treats manufacturer. The company provides clients with natural products that assure the well-being of their dogs by offering a wide choice of natural and holistic pet food products such as baked dog biscuits, cat foods, gourmet treats, canned eatables, and vitamins. Petco Health and Wellness Company, Inc. (NASDAQ:WOOF) manufactures proprietary and exclusive formulations in three state-of-the-art facilities in Indiana, Minnesota, and the Netherlands. It is supported by a global supply chain with over 1.2 million distribution points. Petco Health and Wellness Company, Inc. (NASDAQ:WOOF) revenue in 2021 was reported at $5.8 billion.
Baron Funds made the following comment about Petco Health and Wellness Company, Inc. (NASDAQ:WOOF) in its Q3 2022 investor letter:
Petco Health and Wellness Company, Inc. (NASDAQ:WOOF) is a pet supply retail chain. Shares were down during the quarter as the company reported earnings that missed analyst expectations. Strong sales in pet food and pet services (two categories that tend to be less discretionary) were more than offset by softer-than-expected sales in non-essential supplies and companion animals (both of which tend to be more discretionary). Given management’s expectation for continued consumer spending softness, the company lowered profit guidance for the remainder of the year. While pet food and pet services carry a higher lifetime value for Petco, these categories are also lower margin and so the mix shift towards these categories will be a shortterm drag on profitability. Despite these short-term challenges, we remain positive on Petco’s long-term growth prospects. Weakness in supplies and companion animals has been temporary in prior economic slowdowns and, as a result, should rebound over the coming quarters. At the same time, services continue to expand nicely as the company grows its veterinary practices. Lastly, Petco’s new store concept targeting rural communities is off to a strong start, setting the stage for a second growth concept going forward.