Karat Packaging stock (US3376661073): Quarterly dividend of $1.80 per share attracts income investors

Karat Packaging offers a 7.21% dividend yield with quarterly payouts, including an ex-date on Aug 20, 2025. The Nasdaq-listed firm reported $422.63M revenue and focuses on disposable foodservice products.

Karat Packaging stock has drawn attention from income-focused investors due to its consistent quarterly dividend of $1.80 per share, yielding 7.21% based on a recent price of $24.98, according to Stock Analysis as of Aug 21, 2025. The last ex-dividend date was Aug 20, 2025, with shares trading at $24.98 on Nasdaq that day, down 0.14%.

As of: 14.05.2026

By the editorial team – specialized in equity coverage.

At a glance

• Name: Karat Packaging, Inc.
• Sector/industry: Consumer Discretionary / Containers & Packaging
• Headquarters/country: Chino, California, USA
• Core markets: US foodservice and restaurants
• Key revenue drivers: Disposable tableware and packaging
• Home exchange/listing venue: Nasdaq (KRT)
• Trading currency: USD

Karat Packaging: core business model

Karat Packaging manufactures and distributes single-use disposable products for the foodservice industry, including take-out containers, cups, lids, and cutlery. Founded in 2000 by Alan Yu and Marvin Cheng, the company is headquartered in Chino, California, and employs 721 people. It serves restaurants, catering services, and retail food providers across North America, according to Robinhood as of 2026.

The business model emphasizes premium, customizable packaging solutions that prioritize quality, sustainability, and performance. Karat Packaging sources materials globally but focuses on efficient supply chains to meet US demand, particularly from quick-service restaurants exposed to consumer spending trends relevant to US investors.

Main revenue and product drivers for Karat Packaging

Revenue reached $422.63 million in the reported period, with net income of $29.98 million and earnings per share of $1.59, per MarketBeat 2026 data. Key drivers include molded fiber tableware and compostable options amid rising demand for eco-friendly disposables in the North American market.

The company generates strong margins, with a net margin of 7.25% and return on equity of 20.26%. Products like bags, wraps, and specialty containers support diversified revenue, bolstered by the recovery in US restaurant traffic post-pandemic.

Industry trends and competitive position

The North America compostable tableware market is expanding, driven by regulations and consumer preferences for sustainable alternatives, as noted in Global Market Insights 2026 analysis. Karat Packaging competes with firms like Forward Industries but outperforms in revenue ($422.63M vs. $30.19M) and profitability.

With a beta of 0.93, the stock exhibits lower volatility than the market, appealing to US investors seeking stability in the consumer packaging sector tied to foodservice recovery.

Why Karat Packaging matters for US investors

Listed on Nasdaq under ticker KRT, Karat Packaging provides exposure to the resilient US foodservice industry, which represents a significant portion of its sales. Its California base and focus on domestic distribution align with US economic indicators like restaurant spending.

The 7.21% dividend yield offers income in a high-interest environment, while the $497.26M market cap positions it as a small-cap play with growth potential in sustainable packaging.

Conclusion

Karat Packaging continues to deliver solid financials with $422.63M revenue and a robust 7.21% dividend yield, supported by its position in the growing sustainable foodservice packaging market. Shares traded around $24.79-$24.98 recently on Nasdaq, reflecting steady interest. US investors may note its ties to domestic restaurant demand amid evolving consumer trends.

Disclaimer: This article does not constitute investment advice. Stocks are volatile financial instruments.