Why Mama's Creations Stock Surged Today

By Joe Tenebruso – Dec 9, 2025 at 5:22PMKey PointsMama made a game-changing acquisition.The company's adjusted earnings more than doubled in the third quarter.These 10 Stocks Could Mint the Next Wave of Millionaires ›NASDAQ: MAMAMama's CreationsMarket Cap$455MToday's Changeangle-down(28.09%) $3.14Current Price$14.32Price as of December 9, 2025 at 4:00 PM ETNew partnerships with Costco and Target are set to boost sales and profits.Shares of Mama's Creations (MAMA +28.09%) leaped 28% on Tuesday after the deli-prepared food maker reported impressive growth metrics. Image source: Mama's Creations. A crowning achievement Mama's third-quarter revenue rocketed 50% higher year over year to $47.3 million, fueled by double-digit organic sales growth and the company's recent acquisition of Crown 1 Enterprises. Mama purchased Crown 1's assets from food distribution giant Sysco in September for $17.5 million in cash. The protein and ready-to-eat meals manufacturer brings $56 million in annual revenue, new customers, cross-selling opportunities, and additional grill capacity. "Revenue growth again outpaced the category, accelerating our market share gains, supported by balanced geographic expansion, disciplined trade and marketing promotion investments, and new wins across multiple channels," CEO Adam Michaels said during a conference call with analysts. ExpandNASDAQ: MAMAMama's CreationsToday's Change(28.09%) $3.14Current Price$14.32Key Data PointsMarket Cap$0BDay's Range$12.32 - $14.5052wk Range$5.50 - $14.50Volume3.2MAvg Vol296KGross Margin27.31%Dividend YieldN/A Moreover, Mama's profitability improved as it scaled its operations. Its gross margin rose to 23.6% from 22.6% in the prior-year period. Mama's net income, in turn, jumped 31.7% to $540,000. Advertisement Better still, Mama's adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA), which strips out stock-based compensation and acquisition-related costs, soared 118% to $3.8 million. Mama has plenty of room to grow Mama has a promotion currently underway with Costco that should drive sales and increase brand awareness. Additionally, Mama secured two promising national placements at Target and Food Lion that are also expected to boost sales in the coming months. Looking further ahead, Michaels sees a path to $1 billion in annual revenue. "With expanded capacity, access to premium retail accounts, and ongoing grandma-quality innovation, we are well-positioned to drive sustained profitable growth and improved margins in the quarters to come," Michaels said. About the AuthorJoe Tenebruso is a contributing Motley Fool stock market analyst. Previously, Joe was an investment analyst for Stock Advisor, Income Investor, and Crypto Society, as well as several other market-beating investing services. He graduated summa cum laude from Rutgers University with a Bachelor of Science in Finance.tmfguardianX@Tier1Investor