On a recent episode of the "Mad Money" TV Show, Jim Cramer discussed Weber’s first earnings report as a public company with Chris Scherzinger, CEO of the grill making company. Find out more about Real Money's columnists and investing ideas here.
Since 1952, Weber barbecues have been beloved in backyards. In August, investors got to join in the fun, with the launching of the company IPO.
The IPO was downsized from the original planned offering. Shares crashed in late August, but bounced back in September. Shares popped 7.2% after the earnings report.
Scherzinger told Cramer the macro trends towards backyard living continue to work in Weber's favor. The company delivered 19% top-line growth this quarter, after increasing top-line growth 41% in the same quarter last year.
Back in 1952, George Stephen created a revolutionary grill design inspired by the shape of a buoy. This gave birth to widespread enthusiasm for the kettle grill and the start of what would become the world’s leading barbecue brand.
Today, Weber bills itself as “fuel agnostic,” making wood, charcoal and gas-fired products alike.
While classics remain, much of Weber’s renaissance stems from new product innovations, like their Traveler gas portable grill that opens up new possibilities for gatherings and tailgating. Scherzinger was also bullish on their new Weber Connect Hub, which connects one’s grill to the cloud for the perfect grilling experience.
Scherzinger also said the company is investing in a new plant in Poland which will change their supply chain and cost structure so they will be able to lower debt quicker.
Back in August, Real Money’s Jonathan Heller discussed the Weber IPO here.