Freshpet Faces Scrutiny Over Misleading Advertising Claims
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Mar 28 2026
0mins
Should l Buy FRPT?
Source: Globenewswire
Freshpet Inc. experienced a significant stock decline of 14.78%, hitting a 20-day low, as the company faces scrutiny over misleading advertising claims regarding its dog food products.
The BBB's National Advertising Division (NAD) found that Freshpet's advertisements imply that its dog food is human-grade, leading to a recommendation to cease such claims. This ruling has raised concerns about the company's brand credibility and future prospects, resulting in a substantial drop in stock price. Additionally, Kessler Topaz Meltzer & Check is investigating potential violations of federal securities laws, further impacting investor confidence.
The ongoing investigation and negative publicity surrounding Freshpet's advertising practices may lead to legal repercussions and a decline in consumer trust, which could significantly affect the company's market position and financial performance.
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Analyst Views on FRPT
Wall Street analysts forecast FRPT stock price to rise
7 Analyst Rating
3 Buy
4 Hold
0 Sell
Moderate Buy
Current: 69.500
Low
61.00
Averages
71.67
High
87.00
Current: 69.500
Low
61.00
Averages
71.67
High
87.00
About FRPT
Freshpet, Inc. is focused on the development, manufacturing, marketing, and distribution of pet food products. The Company's products consist of dog food, cat food and dog treats. The Company's products are made according to its nutritional philosophy of fresh, meat-based nutrition and minimal processing. Its proprietary recipes include real, fresh meat and varying combinations of vitamin-rich vegetables, leafy greens, and antioxidant-rich fruits, without the use of preservatives or additives. Its products are sold under the Freshpet brand name. The Company sells its products through a network of Company-owned branded refrigerators, Freshpet Fridges. The Company sells its products throughout the United States, Canada, and Europe. It sells its products through various classes of retail: grocery, mass, international, digital, pet specialty, and club. The Company also offer fresh treats across all classes of retail under the Dognation and Dog Joy labels.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Pet Supply Stocks Show Signs of Recovery
- Market Recovery Signals: Pet supply stocks like Chewy (CHWY) and FreshPet (FRPT) are showing signs of recovery after a prolonged period of underperformance in 2025, indicating a potential shift in market sentiment that may attract more investor interest.
- Technical Indicator Improvement: CHWY has reversed a 10-month downtrend, with recent bullish intermediate-term developments as weekly stochastics show a decisive upturn from oversold territory, and the weekly MACD issues its first buy signal in nearly a year, marking a significant momentum shift.
- Support and Resistance Analysis: CHWY faces next resistance at the 38.2% Fibonacci retracement level near $32.60, while FRPT encounters resistance at the March high near $86, with support around $60, suggesting both stocks have the potential for a more substantial rebound.
- Long-Term Trend Outlook: FRPT's long-term oversold upturn since February lays a bullish foundation for the remainder of the year, and the pinched monthly MACD suggests a cyclical uptrend may be forming, further boosting investor confidence.
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Freshpet's Competitive Position Remains Strong Amid Market Concerns
- Market Competition Analysis: Despite the new private label from Costco and Farmer's Dog's expansion on Walmart.com, TD Cowen believes Freshpet (FRPT) has sufficient scale and competitive advantages to effectively counter these threats, expecting to capture market share from traditional dry and wet food formats.
- Stock Price Retracement Opportunity: Freshpet's stock has retraced 17% over the past 30 days, with TD Cowen rating it as a Buy and setting a target price of $80, indicating a 27% upside from Tuesday's closing price, reflecting confidence in its future growth.
- Retail Space Advantage: Costco's expansion of pet food refrigerator space by 60% provides additional shelf space for both Kirkland and Freshpet, which TD Cowen believes will help Freshpet offset losses from Kirkland, further solidifying its market position.
- Pricing Strategy: Although Farmer's Dog sells at a 35% premium on Walmart.com compared to its website, TD Cowen believes this will not pose a risk to Freshpet's sales, as Walmart plans to exclude Farmer's Dog from its brick-and-mortar stores, ensuring stability for Freshpet in that channel.
See More
Freshpet Under Investigation for Securities Fraud
- Securities Fraud Investigation: Pomerantz LLP is investigating whether Freshpet, Inc. has engaged in securities fraud or other unlawful business practices, prompting investors to reach out for more information, which raises serious concerns about the company's governance and compliance.
- Advertising Claims Issues: The BBB National Programs' advertising division found certain claims made by Freshpet regarding its dog food misleading, particularly the assertion that it is 'human grade,' recommending that such claims be discontinued, highlighting compliance risks in the company's marketing strategies.
- Significant Stock Price Drop: Following the BBB's announcement, Freshpet's stock price fell by $7.95, or 10.55%, closing at $67.42 per share on March 17, 2026, indicating market apprehension regarding the company's future outlook.
- Potential Legal Consequences: The investigation may expose Freshpet to class action lawsuits, with Pomerantz LLP, a prominent securities litigation firm, potentially seeking substantial damages for investors, thereby increasing the legal and financial pressures on the company.
See More
Freshpet's Misleading Advertising Leads to Legal Investigation and Stock Drop
- Advertising Misleading Investigation: Freshpet's dog food advertisements have been deemed misleading, particularly the claims that their products are made like human food, leading the BBB National Advertising Division to recommend discontinuation of such statements, which could impact brand reputation and sales.
- Significant Stock Drop: Following the misleading advertising findings, Freshpet's stock price plummeted from $75.37 on March 16 to $67.42 on March 17, representing a nearly 11% decline, reflecting market concerns about the company's future performance.
- Legal Rights Notification: Kessler Topaz Meltzer & Check LLP is investigating potential violations of federal securities laws by Freshpet, encouraging affected investors to reach out to understand their legal rights, which may lead to increased legal actions from investors.
- Investor Losses Substantial: The stock price drop due to advertising issues has resulted in significant financial losses for Freshpet's investors, potentially affecting the company's performance in capital markets and its future financing capabilities.
See More
Freshpet Faces Legal Scrutiny Over Misleading Advertising Claims
- Advertising Misconduct Investigation: Freshpet is under scrutiny for misleading dog food advertisements, as the BBB's National Advertising Division (NAD) found that its video ads implied the product is human-grade, prompting a recommendation to cease such claims, which could harm brand reputation.
- Significant Stock Decline: Following the allegations, Freshpet's stock plummeted nearly 11%, dropping from $75.37 on March 16 to $67.42 on March 17, indicating a loss of investor confidence in the company's future prospects.
- Legal Rights Notification: Kessler Topaz Meltzer & Check LLP is investigating potential violations of federal securities laws by Freshpet, urging affected investors to reach out to understand their legal rights, highlighting the potential legal risks facing the company.
- Investor Losses Substantial: Investors in Freshpet have experienced significant financial losses due to the misleading advertising, and the involvement of the law firm may lead to future class-action lawsuits, further impacting the company's financial health and market performance.
See More
Analyst Claims Arm Enhances Earnings Potential; Also Featuring Chewy, Quanta, and Other Stocks.
Report Overview: Recent reports from investment and research firms provide insights into analysts' perspectives on various companies.
Disclaimer: The views expressed in these reports do not reflect the opinions or recommendations of Barron’s.
Investment Services: Some report issuers may have existing or potential investment-banking relationships with the companies analyzed.
Purpose of Reports: The reports serve as a sampling of analyst thinking rather than definitive investment advice.
See More
Pet Supply Stocks Show Signs of Recovery
- Market Recovery Signals: Pet supply stocks like Chewy (CHWY) and FreshPet (FRPT) are showing signs of recovery after a prolonged period of underperformance in 2025, indicating a potential shift in market sentiment that may attract more investor interest.
- Technical Indicator Improvement: CHWY has reversed a 10-month downtrend, with recent bullish intermediate-term developments as weekly stochastics show a decisive upturn from oversold territory, and the weekly MACD issues its first buy signal in nearly a year, marking a significant momentum shift.
- Support and Resistance Analysis: CHWY faces next resistance at the 38.2% Fibonacci retracement level near $32.60, while FRPT encounters resistance at the March high near $86, with support around $60, suggesting both stocks have the potential for a more substantial rebound.
- Long-Term Trend Outlook: FRPT's long-term oversold upturn since February lays a bullish foundation for the remainder of the year, and the pinched monthly MACD suggests a cyclical uptrend may be forming, further boosting investor confidence.
See More
Freshpet's Competitive Position Remains Strong Amid Market Concerns
- Market Competition Analysis: Despite the new private label from Costco and Farmer's Dog's expansion on Walmart.com, TD Cowen believes Freshpet (FRPT) has sufficient scale and competitive advantages to effectively counter these threats, expecting to capture market share from traditional dry and wet food formats.
- Stock Price Retracement Opportunity: Freshpet's stock has retraced 17% over the past 30 days, with TD Cowen rating it as a Buy and setting a target price of $80, indicating a 27% upside from Tuesday's closing price, reflecting confidence in its future growth.
- Retail Space Advantage: Costco's expansion of pet food refrigerator space by 60% provides additional shelf space for both Kirkland and Freshpet, which TD Cowen believes will help Freshpet offset losses from Kirkland, further solidifying its market position.
- Pricing Strategy: Although Farmer's Dog sells at a 35% premium on Walmart.com compared to its website, TD Cowen believes this will not pose a risk to Freshpet's sales, as Walmart plans to exclude Farmer's Dog from its brick-and-mortar stores, ensuring stability for Freshpet in that channel.
See More
Freshpet Under Investigation for Securities Fraud
- Securities Fraud Investigation: Pomerantz LLP is investigating whether Freshpet, Inc. has engaged in securities fraud or other unlawful business practices, prompting investors to reach out for more information, which raises serious concerns about the company's governance and compliance.
- Advertising Claims Issues: The BBB National Programs' advertising division found certain claims made by Freshpet regarding its dog food misleading, particularly the assertion that it is 'human grade,' recommending that such claims be discontinued, highlighting compliance risks in the company's marketing strategies.
- Significant Stock Price Drop: Following the BBB's announcement, Freshpet's stock price fell by $7.95, or 10.55%, closing at $67.42 per share on March 17, 2026, indicating market apprehension regarding the company's future outlook.
- Potential Legal Consequences: The investigation may expose Freshpet to class action lawsuits, with Pomerantz LLP, a prominent securities litigation firm, potentially seeking substantial damages for investors, thereby increasing the legal and financial pressures on the company.
See More
Freshpet's Misleading Advertising Leads to Legal Investigation and Stock Drop
- Advertising Misleading Investigation: Freshpet's dog food advertisements have been deemed misleading, particularly the claims that their products are made like human food, leading the BBB National Advertising Division to recommend discontinuation of such statements, which could impact brand reputation and sales.
- Significant Stock Drop: Following the misleading advertising findings, Freshpet's stock price plummeted from $75.37 on March 16 to $67.42 on March 17, representing a nearly 11% decline, reflecting market concerns about the company's future performance.
- Legal Rights Notification: Kessler Topaz Meltzer & Check LLP is investigating potential violations of federal securities laws by Freshpet, encouraging affected investors to reach out to understand their legal rights, which may lead to increased legal actions from investors.
- Investor Losses Substantial: The stock price drop due to advertising issues has resulted in significant financial losses for Freshpet's investors, potentially affecting the company's performance in capital markets and its future financing capabilities.
See More
Freshpet Faces Legal Scrutiny Over Misleading Advertising Claims
- Advertising Misconduct Investigation: Freshpet is under scrutiny for misleading dog food advertisements, as the BBB's National Advertising Division (NAD) found that its video ads implied the product is human-grade, prompting a recommendation to cease such claims, which could harm brand reputation.
- Significant Stock Decline: Following the allegations, Freshpet's stock plummeted nearly 11%, dropping from $75.37 on March 16 to $67.42 on March 17, indicating a loss of investor confidence in the company's future prospects.
- Legal Rights Notification: Kessler Topaz Meltzer & Check LLP is investigating potential violations of federal securities laws by Freshpet, urging affected investors to reach out to understand their legal rights, highlighting the potential legal risks facing the company.
- Investor Losses Substantial: Investors in Freshpet have experienced significant financial losses due to the misleading advertising, and the involvement of the law firm may lead to future class-action lawsuits, further impacting the company's financial health and market performance.
See More
Analyst Claims Arm Enhances Earnings Potential; Also Featuring Chewy, Quanta, and Other Stocks.
Report Overview: Recent reports from investment and research firms provide insights into analysts' perspectives on various companies.
Disclaimer: The views expressed in these reports do not reflect the opinions or recommendations of Barron’s.
Investment Services: Some report issuers may have existing or potential investment-banking relationships with the companies analyzed.
Purpose of Reports: The reports serve as a sampling of analyst thinking rather than definitive investment advice.
See More
