Oatly’s Stock Surges After Collaboration with Carvel

Carvel, one of the oldest ice cream chains in the U.S., has embarked on a health-conscious journey with Oatly (NASDAQ:OTLY), a Swedish company, resulting in the introduction of oat milk-based, non-dairy frozen desserts in its outlets.

The collaboration has ignited a 12.4% surge in Oatly’s (OTLY) stock on Monday, marking a significant upturn for a stock that has experienced a 95% decline since its 2021 IPO.

Oatly’s (OTLY) non-dairy frozen desserts are now on offer at almost 300 Carvel locations spread across 18 U.S. states. Widely revered for its soft serve ice cream, Carvel has expanded its menu to incorporate five new plant-based desserts, including strawberry soft serve, frozen dessert cakes, and ice cream sandwiches.

Oatly (OTLY) has been grappling with efforts to revive investor interest post its market debut, with the stock witnessing a 55% decline over the past 12 months.

Notably, Seeking Alpha analyst Richard Durant highlighted last year that while Oatly (OTLY) is strengthening its market share in the Americas, profitability in that region “remains some way off.” Oatly (OTLY) is slated to release its Q4 results on Feb. 15.