<div>
<h2>Key Points</h2><ul><li>Engaged Capital sold 401,130 shares of Freshpet last quarter; the estimated trade value was about $28.18 million based on quarterly average prices.</li><li>Meanwhile, the quarter-end position value declined by $24.44 million, reflecting the full exit.</li><li>The transaction represents a 9.3% reduction in 13F reportable assets under management (AUM).</li><li>10 stocks we like better than Freshpet ›</li></ul><p>On May 15, 2026, Engaged Capital disclosed it sold out its Freshpet <span class="ticker">(NASDAQ:FRPT)</span> stake, an estimated $28.18 million trade based on quarterly average pricing.</p><h2 id="what-happened">What happened</h2><p>According to an SEC filing dated May 15, 2026, Engaged Capital exited its position in Freshpet by disposing of 401,130 shares. The estimated value of the trade was $28.18 million, calculated using the average closing price over the first quarter. The fund reported no remaining shares of Freshpet at quarter’s end, and the net position value decreased by $24.44 million, a figure that includes both trading activity and stock price changes.</p><h2 id="what-else-to-know">What else to know</h2><ul><li>Top holdings after the filing:<ul><li>NYSE: VFC: $79.50 million (26.2% of AUM)</li><li>NYSE: YETI: $65.28 million (21.5% of AUM)</li><li>NASDAQ: BL: $50.60 million (16.7% of AUM)</li><li>NYSE: GXO: $42.61 million (14.0% of AUM)</li><li>NASDAQ: CGNX: $23.71 million (7.8% of AUM)</li></ul></li><li>As of May 14, 2026, shares of Freshpet were priced at $49.34, down about 40% over the past year and underperforming the S&amp;P 500, which is instead up about 25%.</li></ul><h2 id="company-overview">Company overview</h2><section><table><tbody><tr><th>Metric</th><th>Value</th></tr><tr><td>Revenue (TTM)</td><td>$1.14 billion</td></tr><tr><td>Net income (TTM)</td><td>$200.34 million</td></tr><tr><td>Price (as of market close May 14, 2026)</td><td>$49.34</td></tr></tbody></table></section><h2 id="company-snapshot">Company snapshot</h2><ul><li>Freshpet produces and markets natural fresh meals and treats for dogs and cats, primarily under the Freshpet, Dognation, and Dog Joy brands.</li><li>The firm generates revenue through direct sales to grocery, mass, club, pet specialty, and natural retailers, as well as online channels.</li><li>It serves pet owners in the United States, Canada, and Europe seeking premium, refrigerated pet food products.</li></ul><p>Freshpet, Inc. operates as a leading provider of natural, refrigerated pet food with a focus on high-quality, minimally processed meals and treats. The company leverages a multi-channel distribution network to reach a broad base of retail partners and end consumers. Its strategy emphasizes product innovation and brand differentiation to capture share in the premium pet food segment.</p><h2 id="what-this-transaction-means-for-investors">What this transaction means for investors</h2><p>Engaged Capital has a history of activist investing, and after years of strong growth followed by a sharp pullback in the stock for the past year and a half, the fund’s decision to exit Freshpet entirely may reflect a changing opportunity set rather than a collapse in the underlying story.<br/><br/>In fact, Freshpet's latest results, released earlier this month, showed a business that is still moving in the right direction. First-quarter net sales climbed 13.1% year over year to $297.6 million, while gross margin improved to 40.5% from 39.4% a year earlier. The company also swung from a $12.7 million loss to $48.5 million in net income and raised its full-year sales growth outlook to 8% to 11%. Perhaps most importantly, Freshpet generated $40.3 million in operating cash flow during the quarter and ended March with $381.4 million in cash.<br/><br/>Ultimately, the key question is whether Freshpet can continue converting category growth into sustainable profitability. The stock's 40% decline suggests plenty of skepticism remains, but the company's improving margins, stronger balance sheet, and growing scale indicate the business itself may be in better shape than the share price implies.</p><h2>Should you buy stock in Freshpet right now?</h2>
<p>Before you buy stock in Freshpet, consider this:</p>
<p>The <em>Motley Fool Stock Advisor</em> analyst team just identified what they believe are the <strong>10 best stocks</strong> for investors to buy now… and Freshpet wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.</p>
<p>Consider when <strong>Netflix</strong> made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, <strong>you’d have $481,589</strong>!* Or when <strong>Nvidia</strong> made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, <strong>you’d have $1,345,714</strong>!*</p>
<p>Now, it’s worth noting <em>Stock Advisor’s</em> total average return is 993<span>% — a market-crushing outperformance compared to 208% for the S&amp;P 500. <strong><span>Don't miss the latest top 10 list, available with <em>Stock Advisor</em>, and join an investing community built by individual investors for individual investors.</span></strong></span></p>
<p>See the 10 stocks »</p>
<p style="color: #767676; text-align: left"><em>*Stock Advisor returns as of May 22, 2026. </em></p><p><em>Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Cognex and Freshpet. The Motley Fool recommends BlackLine, GXO Logistics, and Yeti. The Motley Fool has a disclosure policy.</em></p>
<p>The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.</p>
</div>

FRPT

FTXG

<p>Engaged Capital sold 401,130 shares of Freshpet for approximately $28.18 million, marking a complete exit from its position. The fund's assets under management decreased by 9.3%, with Freshpet's stock down 40% over the past year. Despite this, Freshpet reported a 13.1% increase in first-quarter net sales and improved gross margins. Analysts suggest skepticism remains about the stock's profitability, but the company's financial health appears stronger than its share price indicates.</p>

nasdaq

FRESHPET

First Trust NASDAQ Food & Beverage

Invesco Food & Beverage ETF

Yeti

Blackline

GXO Logistics

Cognex

S&P 500

Netflix

NVIDIA

Nasdaq

NVIDIA Corporation

What to Know About This Fund's $28 Million Exit From a Pet Food Stock Down 40%