AMDP Draft

MEMORANDUM

TO:                Professor Clark Hansen, CEO, AMDP
FROM:          Ryan Melsness, R&D Associate
DATE:           February 25, 2023
SUBJECT:    Investment Recommendation Memo

Dear Professor Hansen,

Summary
In this memo I will be giving my suggestion for a favorable investment opportunity for AMDP. In this memo I will first define four key terms, triple bottom line, social responsibility, social enterprise, and carbon footprint. Next I will give a background on the company with details on the company’s financial track record as well as its own claims on its sustainable business practices. Lastly, I will provide an analysis and give a final recommendation on whether to invest or not.

Definitions
The first definition to note is the triple bottom line. Furthermore, “Companies should commit to focusing as much on social and environmental concerns as they do on profits and these three bottom lines are: profit, people, planet” (Kenton 2023). The second definition is social responsibility, which is where, “Businesses must act in a manner beneficial to society, not just maximizing shareholder value” (Ganti 2023). Third is social enterprise, which is “A business with specific social objectives that serve its primary purpose” In addition the business must, “Seek to maximize profits while maximizing benefits to society and the environment” (Barone 2022). Lastly is carbon footprint, which is “The total amount of greenhouse gasses that are generated by our actions” (The Nature Conservancy 2023) It is measured by how many tons of greenhouse gasses are emitted per year (The Nature Conservancy 2023). It is important to reduce it because, “Our carbon footprint affects the environment, destroys wildlife, impacts human health, and hurts economic growth” (DBS 2023).

Background
True Food Kitchen is a health conscious focused restaurant chain that offers a variety of dishes focusing on fresh, whole ingredients and minimizing processed foods (True Food Kitchen 2022). It is rooted in nutritional science with intentionally-sourced ingredients that are good for you while being delicious. They are on a mission to inspire you to eat better, feel better, and live better. They were founded in 2008 by Dr. Andrew Weil who is a well-known integrative medicine expert and a restauranter named Sam Fox. They are perceived as a reputable and innovative restaurant chain that is focused on healthy and sustainable foods.

Growth
True Food Kitchen has experienced significant growth in recent years and has expanded rapidly to have over 30 locations in under 15 years. In 2021 it was named one of the fastest growing private companies in America by Inc. magazine with revenue growth rate of 131% over the last three years (PR Newswire).

Company Claims
True Food Kitchen claims their practices are sustainable and responsible while promoting healthy living. True Food Kitchen claims they, “go to great lengths to source with integrity, partnering only with growers that are committed to the same values as we are” and they state, “We believe in foods that work for you, to nourish you as healthfully as possible” (True Food Kitchen 2022).

Analysis
While they are loved by their passionate and loyal customers, True Food Kitchen is well respected by industry experts as well. According the one expert, “True Food is in a category of its own, with a mission perfectly aligned with HumanCo to help people live a healthier life through epic food experiences…True Food Kitchen looks to nature and farms for all of its food” (Karp). In addition, another expert states, “This is another sign that we are moving toward healthier food, and a healthier planet” (Reno).

Recommendation
Everything considered, I propose you should consider investing in True Food Kitchen. True Food Kitchen is committed to being socially responsible, environmentally sustainable, all while being profitable. True Food Kitchen is health focused, sources local fresh ingredients, and makes an effort to be socially responsible. In addition, they are growing at a tremendously fast rate, continuing to open up new restaurants and gain big investments. I see a bright future for True Food Kitchen and I think this is a perfect opportunity to invest in a company that falls in line with your values.
 

Works Cited
Barone, Adam. “The Aims of Social Enterprises.” Investopedia, Investopedia, 8 July 2022,                 https://www.investopedia.com/terms/s/social-enterprise.asp.
Ganti, Akhilesh. “Social Responsibility in Business: Meaning, Types, Examples, and Criticism.” Investopedia, Investopedia, 13 Jan. 2023, https://www.investopedia.com/terms                                    /s/socialresponsibility.asp.
“Get to Know Our Story.” True Food Kitchen, 16 Nov. 2022, https://www.truefoodkitchen.com                /truestory/.
“Importance of Reducing Carbon Footprint: Digibank by DBS.” DBS, https://www.dbs.com                    /digibank/in/articles/lifestyle/importance-of-reducing-carbon-footprint.
Karp, Andrew. “True Food Kitchen Raises $100 Million from Mission-Aligned Investors to Help             People Eat Better, Feel Better & Live Better.” PR Newswire, 8 Sept. 2022, https://www.prnewswire.com/news-releases/true-food-kitchen-raises-100-million-from-mission-            aligned-investors-to-help-people-eat-better-feel-better--live-better-301620248.html.
Kenton, Will. “Triple Bottom Line.” Investopedia, Investopedia, 13 Jan. 2023,                                         https://www.investopedia.com/terms/t/triple-bottom-line.asp.
Reno, Jamie. “True Food Kitchen Leads the Way for Healthy Restaurants.” Healthline, Healthline           Media, 16 May 2016, https://www.healthline.com/health-news/healthy-restaurants-finally-             serve-healthy-profits.
“What Is Your Carbon Footprint?” The Nature Conservancy, https://www.nature.org/en-us/get-              involved/how-to-help/carbon-footprint-calculator/.