Odd Burger/ODD

Leading vegan fast-food restaurant chain and food technology company Odd Burger Corp. announced that its manufacturing division, Preposterous Foods Inc., has secured a major distribution deal with Dot Foods Canada.

The deal will greatly expand the accessibility of Odd Burger's manufactured food products by making them available to hundreds of distributors across Canada.

"We believe that this is a very significant step forward for Odd Burger," said Chief Executive Officer and Co-founder James McInnes. "This distribution deal will allow us to secure listings with national retailers and will greatly increase our ability to grow revenue.  Dot will also simplify our logistics and production process, which will drive efficiency across our manufacturing division."

Odd Burger said the initial launch with Dot will see four retail SKUs (stock keeping units, codes identifying and tracking products in inventory) available for distribution, including the company’s ChickUn Fillet, Smash Burger, Chickpea Burger, and Breakfast Sausage. 

"The distribution deal with Dot will allow Odd Burger to better service national grocery and restaurant chains, as the company will now be able to offer a convenient distribution channel and a national pricing program for its product lines," Odd Burger said in a release.

Founded in 2016, Dot Foods Canada is a Canadian business with distribution centers in Ingersoll, Ontario, and Calgary, Alberta, where it lists over 3,300 products from over 100 suppliers and services nearly 400 distributors.  Dot specializes in Less Than Truckload (LTL) quantities, allowing its customers to order with a single case order minimum, making products more accessible and more affordable across the supply chain.

'Healthier, More Sustainable Fast Food'

Odd Burger has 20 operational units in four Canadian provinces, including six corporate-owned restaurants, 12 franchised restaurants, and two franchised mobile units, producing an average annual revenue per restaurant of nearly CA$500,000. Its average sales per restaurant at locations in the West Coast of Canada are closer to CA$1,000,000 per unit annualized, with demographics in the West better matching the Odd Burger product offering.  The company said it has 136 locations in the pipeline through signed franchise agreements in Canada and the United States.

The company manufactures its food at its own manufacturing facility in London, Ontario, using primarily whole food, plant-based ingredients including chickpeas, wheat, oats, and beans.  The company said it produces 11 plant-based proteins and eight dairy-free sauces and dressing "that pair with restaurant cooking technology."

The company also recently launched plant-based pizza at its Canadian restaurants, including one called "Plant-Meat Lovers."

Its frozen retail line is currently listed in more than 60 retailers, including Whole Foods Market, Goodness Me, Sobeys, and now Calgary Coop Odd Burger said. The company confirms that it plans to greatly expand the distribution of its CPG line in 2025 as part of its strategic initiatives to drive profitable growth.

Odd Burger restaurants operate as smart kitchens, which use state-of-the art cooking technology and automation solutions "customers craving healthier and more sustainable fast food," the company said.

Stores have small footprints optimized for delivery and takeout, advanced cooking technology, competitive pricing, a vertically integrated supply chain, and healthier ingredients, "creating guilt-free fast food," the company said.

Analyst: Stock Is a 'Strong Buy'

*Technical Analyst Clive Maund rated Odd Burger as a "Strong Buy" in February, citing its technological approach to plant-based fast food.

The company's vertically integrated business model is a key differentiator, he said, allowing it to control costs and maintain quality across both its restaurant and CPG segments. Maund noted that Odd Burger's automation initiatives, including its "OddOmation" system, have the potential to increase efficiency and enhance customer experience.

The company has also "attracted an exceptionally experienced management team" that includes board member Marc Goodman, who is vice president and general manager at 7-Eleven overseeing more than 620 locations.

Maund emphasized that the company's compact, automation-driven locations and franchise strategy positioned it for scalability, with expansion into the U.S. and international markets.

The Catalyst: Rising Concern About Animal Health, Cruelty

The global vegan food market size was valued at US$16.55 billion in 2022 and is expected to grow at a compound annual growth rate (CAGR) of 10.7% from 2023 to 2030, according to Grand View Research.

"Increasing awareness about the benefits of following a vegan diet is the key factor driving the growth," the firm said. "Rising concern about animal health and animal cruelty has been encouraging people to shift from animal-based to plant-based meals. Thus, the shift in preference of consumers is leading to an upsurge in consumption of vegan food."

Researchers noted that the production of vegan food is comparatively high in price compared to animal-based food because of the high cost of plant-based ingredients, a factor is expected to restrain the adoption of vegan edible products in low and middle-income countries.

"However, various key players are adopting advanced technology to make significant advancements in the flavors and textures of plant-based meals which are expected to present key growth opportunities" like Odd Burger, the report said.

In addition, the growing popularity of plant-based food across the globe further supports market growth, Grand View said.

According to another report by Grand View Research, a 2023 study by Soylent found that 68.1% of those who choose veganism are motivated by animal welfare, 17.4% by health reasons, and 9.7% by environmental and sustainability concerns.

"This type of food addresses the growing demand for healthier, environmentally friendly, and cruelty-free meal options," a report by Spherical Insights and Consulting noted. "Fast food has long been associated with unhealthy and animal-based products, but the rise of veganism and increased awareness of its benefits has led to the development of vegan substitutes."

Ownership and Share Structure

According to Odd Burger, about 62% of the company is owned by insiders, and in addition, 10% of shareholders are close to management, while less than 1% is owned by institutions. The rest is retail.

Top shareholders include co-founders James and Vasiliki McInnes, who both hold nearly 23% each, BoxOne Ventures Inc. with 13.62%, and board member Francois Arbor with 2.14%.

The company said it has 98.4 million shares outstanding. Its market cap is CA$22.64 million and has traded in a 52-week range between CA$0.11 and CA$0.38.