KRT
Consumer CyclicalKarat Packaging Inc. · Packaging & Containers · $530M
What is Karat Packaging Inc.?
Karat Packaging Inc. is a small-cap manufacturer and distributor of single-use foodservice products, serving restaurants, distributors, and retail customers across the United States. Founded in 2000 and headquartered in Chino, California, the company operates across both conventional and eco-friendly product lines.
Karat Packaging generates revenue by supplying disposable packaging and serviceware to the foodservice industry. Its customers include restaurant chains, regional distributors, and online buyers who need reliable, high-volume supplies of cups, containers, cutlery, and related items. Beyond standard products, the company also offers design, printing, and logistics services, giving it additional touchpoints with customers. The Karat Earth brand extends the portfolio into compostable and biopolymer-based alternatives for operators seeking greener options.
Karat Packaging was founded in 2000 and is headquartered in Chino, California.
- Food and take-out containers in plastic, paper, and compostable materials
- Cups, lids, cutlery, straws, and tableware for foodservice operators
- Specialty beverage ingredients and foodservice equipment
- Karat Earth branded eco-friendly and biopolymer-based disposables
- Custom design, printing, and logistics services
Is KRT a Good Stock to Buy?
UQS Score rates KRT as Good overall, reflecting a balanced but not exceptional profile across the five pillars.
The standout characteristic of KRT's scorecard is its Risk pillar, which rates Strong — suggesting the company carries a relatively conservative financial structure compared to many small-cap peers. Valuation is rated Attractive, meaning the market may not be fully pricing in the company's fundamentals at current levels.
The Moat pillar rates Weak, which points to limited pricing power and competitive differentiation in a commoditized packaging market. Quality and Growth both rate Neutral, indicating neither a clear earnings-quality advantage nor a strong expansion trajectory.
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Past performance does not guarantee future results. UQS Score is based on fundamental data and is not a buy/sell recommendation.
Does KRT pay dividends?
Yes — Karat Packaging Inc. pays a dividend.
Karat Packaging pays a regular dividend, which is relatively uncommon among small-cap consumer cyclical companies. This suggests management is comfortable returning capital to shareholders alongside funding operations. Income-oriented investors may find the dividend cadence appealing, though dividend sustainability should always be evaluated in the context of the company's broader financial health.
When does KRT report earnings?
Karat Packaging reports earnings on a quarterly cadence, consistent with standard practice for US-listed equities.
The company's Neutral Growth and Quality pillar ratings suggest earnings have been steady rather than accelerating. Investors should watch for commentary on foodservice demand trends and input cost dynamics, as both can meaningfully affect margins in the disposable packaging space.
For the most recent quarter's results and guidance, visit Karat Packaging's investor relations page directly.
KRT Price History
+86.5% over 5Y
Monthly close, adjusted for stock splits and dividend reinvestment.
What if I invested in Karat Packaging Inc.?
Based on Karat Packaging Inc.'s historical closing prices, adjusted for stock splits and dividend reinvestment. Past performance does not guarantee future results. This is for informational purposes only and is not financial advice.
KRT Long-term Outlook
KRT's Growth pillar rates Neutral, pointing to a business expanding at a measured pace rather than a high-growth trajectory. The Strong Risk rating provides some confidence that the company is not taking on excessive leverage to fund that growth. However, the Weak Moat rating is a structural headwind — in a commoditized packaging market, sustaining above-average returns over time is challenging without a durable competitive edge.
Growth drivers
- Ongoing foodservice industry recovery and demand for takeout packaging
- Expansion of eco-friendly Karat Earth product lines as operators seek sustainable options
- Logistics and design services creating stickier customer relationships
Key risks
- Weak competitive moat leaves pricing vulnerable to lower-cost rivals
- Input cost volatility in plastics and paper can compress margins
- Small-cap size limits scale advantages relative to larger packaging peers
KRT vs Peers
Karat Packaging competes in the broader packaging and disposables space alongside several publicly traded peers.
Myers Industries focuses on polymer-based products across both distribution and manufacturing segments, with broader industrial exposure beyond foodservice.
Ranpak specializes in paper-based protective packaging systems, targeting e-commerce and industrial shippers rather than the foodservice channel.
Cascades is a Canadian packaging and tissue producer with a much larger scale and a strong emphasis on recycled-fiber sustainable packaging.
Frequently Asked Questions
What does Karat Packaging do?
Karat Packaging manufactures and distributes single-use disposable products for the foodservice industry. Its range includes cups, containers, cutlery, lids, straws, and compostable alternatives sold under the Karat Earth brand. The company also provides design, printing, and logistics services to restaurant chains, distributors, and retail customers.
Does KRT pay dividends?
Yes, Karat Packaging pays a regular dividend. This is relatively uncommon for a small-cap consumer cyclical company and may appeal to income-focused investors. Always review the company's latest financial disclosures to assess dividend sustainability before investing.
When does KRT report earnings?
Karat Packaging follows a standard quarterly earnings cadence for US-listed companies. For exact dates and the most recent results, check the investor relations section of the company's official website.
Is KRT a good stock to buy?
KRT earns a Good overall UQS Score. Its Strong Risk rating and Attractive Valuation are positives, but the Weak Moat and Neutral Quality and Growth ratings indicate meaningful limitations. Whether it fits your portfolio depends on your risk tolerance and investment goals — the full pillar breakdown is available to Pro members.
Is KRT overvalued?
KRT's Valuation pillar rates Attractive, suggesting the stock may be reasonably priced relative to its fundamentals at current levels. However, valuation alone does not determine investment merit — the Weak Moat rating means investors should weigh whether the business can sustain its returns over time.
How does KRT compare to its competitors?
Compared to peers like Myers Industries, Ranpak, and Cascades, Karat Packaging is more narrowly focused on the foodservice disposables channel. Its small-cap size means it lacks the scale of larger packaging companies, though its Attractive Valuation may offer a different risk-reward profile than bigger rivals.
What is KRT's market cap bracket?
Karat Packaging is classified as a small-cap company. This means it carries higher volatility risk and less analyst coverage than large- or mega-cap peers, but may also offer valuation opportunities that larger companies do not.
Who founded Karat Packaging?
Karat Packaging was founded in 2000 and is headquartered in Chino, California. For detailed founding history and leadership background, the company's investor relations and about pages are the most reliable sources.
Is KRT a long-term quality investment?
As a long-term quality indicator, KRT's profile is mixed. The Strong Risk rating suggests financial stability, but the Weak Moat rating raises questions about durable competitive advantage — a key factor for long-term compounding. Pro members can view the complete pillar analysis to assess long-term fit.
What is the main competitive advantage of Karat Packaging?
Karat Packaging's competitive positioning centers on its broad product range, eco-friendly Karat Earth line, and value-added services like custom printing and logistics. However, the UQS Moat pillar rates Weak, reflecting that the disposable packaging market is highly competitive with limited structural barriers to entry.
What sector does KRT belong to?
KRT is classified in the Consumer Cyclical sector. This means its business performance tends to be sensitive to broader economic conditions, particularly trends in consumer spending and foodservice industry activity.
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Pro Analysis
KRT — Score History
| Date | UQS | Quality | Moat | Growth | Risk | Value | Change |
|---|---|---|---|---|---|---|---|
| May 7, 2026 | 55.2 | 59.1 | 24.0 | 50.2 | 81.6 | 81.1 | -0.1 |
| Apr 26, 2026 | 55.3 | 59.1 | 24.0 | 50.2 | 81.6 | 81.5 | +0.2 |
| Apr 19, 2026 | 55.1 | 59.1 | 24.0 | 50.2 | 81.6 | 80.5 | +0.7 |
| Apr 18, 2026 | 54.4 | 59.3 | 24.0 | 50.2 | 76.1 | 80.6 | -0.5 |
| Apr 14, 2026 | 54.9 | 59.3 | 24.0 | 50.2 | 76.1 | 84.4 | 0.0 |
| Apr 12, 2026 | 54.9 | 59.3 | 24.0 | 50.2 | 76.1 | 84.0 | -0.4 |
| Apr 11, 2026 | 55.3 | 59.3 | 24.0 | 50.2 | 76.1 | 86.8 | -0.8 |
| Apr 10, 2026 | 56.1 | 59.3 | 24.0 | 50.2 | 81.6 | 86.8 | +0.8 |
| Apr 9, 2026 | 55.3 | 59.4 | 24.0 | 50.2 | 76.1 | 86.8 | -0.9 |
| Apr 8, 2026 | 56.2 | 59.8 | 24.0 | 50.2 | 81.6 | 86.8 | 0.0 |
KRT — Pillar Breakdown
Quality
— 61.3/100 (25%)Karat Packaging Inc. shows solid profitability with healthy returns on capital and reasonable margins.
How effectively capital is deployed to generate returns.
Profitability relative to shareholders' equity.
Ability to convert revenue into operating profit.
Bottom-line profit as a share of revenue.
Asset productivity — how much gross profit each dollar of assets generates.
Free cash flow relative to market value.
Growth
— 50.4/100 (20%)Karat Packaging Inc. shows steady but unspectacular growth, typical for mature companies.
Revenue trajectory over the last twelve months.
Compound annual revenue growth rate over 3 years.
Year-over-year earnings per share growth.
Analyst consensus for future revenue growth.
Analyst consensus for future earnings growth.
Risk
— 70.1/100 (15%)Karat Packaging Inc. maintains a reasonable risk profile with manageable debt levels.
Debt levels relative to earnings capacity.
Total debt relative to shareholder equity.
Short-term liquidity — ability to pay near-term obligations.
Earnings capacity relative to interest payments.
Valuation
— 86.2/100 (15%)Karat Packaging Inc. appears attractively valued relative to its earnings, cash flows, and sector peers.
Inverse of forward P/E — higher yield means cheaper stock.
How many years of FCF the market cap represents.
P/E relative to earnings growth — lower is more attractive.
Enterprise value multiple relative to sector median.
Moat
— 24/100 (25%)Karat Packaging Inc. operates in a highly competitive environment with limited sustainable advantages. The Moat pillar evaluates competitive advantages across five dimensions: Switching Costs, Network Effects, Cost Advantage, Intangible Assets, and Scale & Ecosystem. Sign in to customize moat ratings for KRT.
Score Composition
Financial Data
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How is the KRT UQS Score Calculated?
The UQS (Unified Quality Score) for Karat Packaging Inc. is calculated using a proprietary 6-pillar framework with 29 financial metrics. Each pillar evaluates a different dimension on a 0–100 scale, then combines into a single weighted score. Scoring thresholds are calibrated per sector. Momentum is an optional Pro toggle — without it, you get the 5-pillar / 25-metric core shown below.
Quality (25%) measures profitability and capital efficiency — ROIC, ROE, margins, GP/Assets, and FCF Yield.
Moat (25%) assesses Karat Packaging Inc.'s competitive advantages across switching costs, network effects, cost advantages, intangible assets, and ecosystem scale.
Growth (20%) tracks revenue trajectory and earnings momentum, combining historical results with analyst forward estimates.
Risk (15%) is inversely scored — lower leverage and strong balance sheet health result in higher scores.
Valuation (15%) measures whether Karat Packaging Inc. is fairly priced using earnings yield, price-to-FCF, PEG ratio, and EV/EBITDA relative to sector peers.
Six investor-inspired presets are available, each with different pillar weights: Balanced, Buffett, Munger, Lynch, Cathie Wood, and Graham. The public score shown here uses the Balanced preset. Learn more in our FAQ.