The ongoing tariff war has forced yet another company to reconsider its operations. Odd Burger (TSXV: ODD) this morning indicated that it is halting its expansion plans to the United States given the ongoing political tension within North America.
The expansion into US markets has been a multi-year effort for the Vegan fast food chain, who in June 2023 signed its first development agreement for the US, with plans to open 20 locations in Washington state. A subsequent agreement announced in May 2024 indicated that the company was aiming to open 40 locations within Florida. All locations were to be operated via franchise development agreements.
Odd Burger then doubled down on that expansion initiative earlier this month, stating that it would be raising funds to replicate its Canadian success south of the border. Plans had called for a new manufacturing facilities to be built in the US to mitigate the impact of tariffs, however those plans are now cancelled, with the company stating this morning that capital will instead be allocated to the Canadian markets.
The change was blamed on pricing metrics, given the steadily changing economic climate in the US. “Given the global tariff uncertainty, we are putting the brakes on our U.S. expansion until pricing metrics can be formulated with certainty,” commented Odd Burger CEO James McInnes.
Specifics on how the company intends to invest in the Canadian market were not provided, with the company instead stating that it believes it can assist other Canadian companies transition to plant-based products made in Canada.
Odd Burger last traded at $0.24 on the TSX Venture.
Information for this briefing was found via Sedar and the sources mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
