Traeger, Inc. (COOK): Business Model Canvas [Dec-2025 Updated]

You're digging into Traeger, Inc. (COOK)'s strategy, and honestly, the story right now isn't just about wood-fired flavor; it's a massive operational pivot. We're looking at a company fighting margin pressure by executing Project Gravity to snag $58 million in annualized cost savings while navigating a projected high single-digit decline in grill sales for FY2025, guiding total revenue between $540 million and $555 million. The real gold, though, is the consumables business-that high-margin pellet stream grew 12.3% in Q3 2025 to $25.3 million-and their decision to exit DTC sales to lean harder into big-box retail. Let's break down how these nine building blocks define their path forward.

Traeger, Inc. (COOK) - Canvas Business Model: Key Partnerships

You're looking at the core distribution and alliance structure for Traeger, Inc. as they push through the final stages of Project Gravity in late 2025. The focus has clearly shifted to optimizing channel efficiency, which means leaning harder on established retail relationships while pruning non-core sales methods.

The relationship with Costco Wholesale is undergoing a significant structural change. Traeger, Inc. officially announced the discontinuing of its Costco roadshow program as part of the Phase 2 actions under Project Gravity, effective December 2025. This move signals a strategic pivot away from in-store, temporary sales events, which in the past were noted for generating significant monthly revenue, sometimes over a million dollars a month on the roadshows alone in certain regions.

This channel optimization is further evidenced by the exit from the Traeger direct-to-consumer business, where Traeger.com shoppers are now being redirected to retail partners. This action places greater importance on the major national and regional retailers for grill distribution, making those relationships the primary volume drivers for the brand.

For international reach, Traeger, Inc. is actively adjusting its European footprint. The company is transitioning to a distributor model in select European markets that previously operated under a direct sales model. This third-party distributor approach is designed to streamline logistics and market penetration outside of North America.

While the specific financial contribution from strategic brand partnerships, such as those rumored with entities like Budweiser or Pepsi Frito Lay for co-marketing, is not publicly detailed, these alliances are generally intended to drive brand affinity and pull-through sales at the primary retail points.

Here's a quick look at the context surrounding these channel shifts, based on the latest reported figures:

The overall strategy is clearly about simplifying the sales structure to capture the targeted cost savings. The company is targeting a total of $50 million in annualized run-rate savings from Project Gravity, with Phase 2 actions, including the channel shifts, contributing an additional $20 million.

The key partnership adjustments include:

• - Major national and regional retailers are now the primary focus for grill sales following the DTC exit.
• - Costco Wholesale relationship is shifting from in-line roadshows to standard retail presence, if any.
• - Strategic brand partnerships are assumed to support the core retail channel.
• - Third-party distributors are taking over in specific European territories.

The Gross Profit Margin in Q3 2025 was 38.7%, a figure management is trying to protect and improve through these structural changes. Finance: review the Q4 2025 retail sell-through data against the Q3 exit rates by end of January.

Traeger, Inc. (COOK) - Canvas Business Model: Key Activities

You're looking at the core actions Traeger, Inc. (COOK) is taking to reshape its operations and secure profitability, especially given the macroeconomic pressures and tariff environment we've seen through late 2025. These aren't just operational tasks; they are direct financial levers.

Executing Project Gravity for annualized cost savings is central. The company updated its restructuring program, Project Gravity, on December 4, 2025, now targeting about \$58 million in total annualized pre-tax cost savings once fully implemented. This is broken down, with Phase 1 expected to contribute around \$30 million and Phase 2 around \$28 million. Furthermore, a workforce reduction approved on that same date is expected to add approximately \$8 million in additional annualized pre-tax savings. Phase 1 actions, which included a reduction in force in the second quarter of 2025, are anticipated to realize about \$13 million of those savings within Fiscal 2025 itself.

Product design, R&D, and innovation remain key to maintaining the premium position. The integration of WiFIRE technology into grill lines like the Pro Series supports the connected experience. While specific R&D spend isn't public here, the relevance is clear: the broader Internet of Things kitchen system market is projected to grow at a 15% CAGR, which is where Traeger, Inc. (COOK) is positioning its connected hardware.

Global supply chain management is undergoing a significant overhaul, directly tied to tariff mitigation. Management has stated an aim to reduce production reliance on China by 2026. This is critical because grills sourced from China face a combined 45% tariff. Phase 2 of Project Gravity specifically includes structural changes like shifting certain European markets to a distributor model and consolidating pellet mills to streamline operations.

Fostering the 'Traegerhood' community and content creation is a vital activity for recurring revenue. This community acts as a low-cost marketing engine, driving sales of high-margin consumables. In the third quarter of Fiscal 2025, this loyalty translated into consumables revenue growth of 12.3%, reaching \$25.3 million. Honestly, the math on the lifetime value is compelling: if a customer buys a grill once, but buys \$100 worth of pellets and rubs four times a year, that recurring stream is the financial anchor.

Here's a quick snapshot of the financial context surrounding these activities as of the Third Quarter Fiscal 2025 results:

The company is also exiting the Traeger direct-to-consumer business by redirecting Traeger.com shoppers to retail partners as part of Project Gravity Phase 2. This is a clear shift in channel management. The overall goal of these activities is to unlock capacity to invest into core growth pillars, as CEO Jeremy Andrus noted.

Finance: draft 13-week cash view by Friday.

Traeger, Inc. (COOK) - Canvas Business Model: Key Resources

You're looking at the core assets Traeger, Inc. (COOK) relies on to run its business as of late 2025. These aren't just things they own; these are the things that make the value proposition possible.

The strong brand equity and category leadership in wood pellet grills is a massive intangible asset, clearly reflected in the performance of the core product line. For the third quarter of fiscal 2025, Grill revenues hit $76.6 million, showing a 2.2% increase year-over-year. This segment still forms the backbone of the hardware sales.

The proprietary technology, including the patented wood pellet grill technology and the WiFIRE connectivity, underpins that brand strength. This technology drives the ecosystem that supports the recurring revenue streams. Speaking of which, the consumables business is a key resource for stability. In Q3 2025, Consumables revenue grew robustly by 12.3% to reach $25.3 million. Management is expecting growth for consumables for the full fiscal year 2025.

The MEATER smart thermometer technology and its associated intellectual property represent a strategic, albeit currently challenged, resource. The Accessories segment, which includes MEATER, saw revenues decline by 4.3% to $23.5 million in Q3 2025, specifically due to lower MEATER sales. Still, the integration of MEATER is part of the larger Project Gravity cost-saving initiative, which is a key operational asset being optimized right now.

The physical assets, particularly inventory, are crucial for meeting demand, especially heading into the next peak season. As of the end of the third quarter of 2025, Traeger, Inc. reported an inventory balance of $114.6 million. This compares to $107.4 million at the end of fiscal 2024.

Here's a quick look at how the product segments contributed to the $125.4 million total revenue in Q3 2025:

Furthermore, the intellectual capital tied up in operational efficiency programs is a current focus. Project Gravity is designed to enhance these resources through simplification. Phase 1 of Project Gravity is anticipated to deliver approximately $13 million in annualized cost savings within Fiscal 2025, contributing to the total run-rate savings target of $50 million once fully implemented.

The company's current operational structure and intellectual property can be summarized by these key components:

• Category leadership in wood pellet grills.
• Patented grill technology and WiFIRE connectivity.
• Consumables revenue base of $25.3 million in Q3 2025.
• MEATER IP, currently undergoing strategic integration.
• Inventory asset value of $114.6 million as of Q3 2025.
• Project Gravity cost savings targeting $50 million annualized.

Finance: draft 13-week cash view by Friday.

Traeger, Inc. (COOK) - Canvas Business Model: Value Propositions

You're looking at the core reasons customers choose Traeger, Inc. (COOK) over the competition, even when the macro environment is tight. It really boils down to flavor, technology, and brand pull. The company's mission is to 'Create a More Flavorful World,' and the numbers from late 2025 show where that focus is paying off.

The promise of superior wood-fired flavor is directly supported by the recurring revenue stream from consumables. For the third quarter of fiscal year 2025, consumables revenue grew by 12.3% year-over-year, reaching $25.3 million. This recurring revenue stream is what you want to see for long-term stability; they are selling the flavor, not just the hardware. The core grill business remains the largest revenue driver, bringing in $76.6 million in Q3 FY2025, which was an increase of 2.2% compared to the prior year.

Ease of use centers on the WiFIRE technology, which connects the smartphone via the Traeger App, allowing users to change temperatures, monitor food temps, and add smoke from anywhere, at any time. This smart grilling technology includes features like Apple Watch integration and GrillGuide for step-by-step cooking cycles.

Premium, durable grill quality justifies the higher price points when you look at the hardware itself. For instance, the high-end Timberline 1300 model weighs in at 220 lbs and offers 1300 sq. in. of cooking area. This heft and build quality contrast with competitors, positioning the top-tier units as a substantial, premium backyard centerpiece.

The lifestyle and community aspect, often called the 'Traegerhood,' is the intangible value that drives brand loyalty. While I don't have a specific community engagement metric for late 2025, the continued strength of the core grill business, which grew 12.8% in Q1 FY2025 to $86.7 million, shows the brand's ability to capture demand for that experience.

Capturing new customers is being addressed with entry-level options. The successful launch of the Woodridge series directly benefited the grills business growth of 13% in Q1 FY2025. The Woodridge is positioned as the new entry-level option, replacing the older Pro, and is available in base, Pro, and Elite configurations. The base model is offered at the same price as the older Pro but includes a better grill body and a digital controller.

Here's a quick look at the revenue mix from the third quarter of fiscal year 2025, showing the relative importance of the hardware versus the flavor components:

Overall, the company is focused on operational efficiency, targeting $50 million in total annualized cost savings from Project Gravity to help manage headwinds like tariffs and support the core value propositions. The reiterated Fiscal Year 2025 revenue guidance is between $540 million and $555 million.

Traeger, Inc. (COOK) - Canvas Business Model: Customer Relationships

You're looking at how Traeger, Inc. keeps its customers engaged beyond the initial grill purchase. It's less about transactional support and more about building a lifestyle, which is key to driving recurring revenue.

The community aspect, often called the Traegerhood, is central to this. Traeger, Inc. reports robust consumer engagement data derived from their connected grills. This loyalty directly supports the consumables business, which saw revenue growth of 12% in the third quarter of fiscal year 2025, hitting $25 million in that period. That recurring revenue stream is defintely what you want to see for long-term stability. Sell the flavor, not just the hardware.

Social media presence is a major driver for this engagement, hosting a large audience base as of late 2025:

• Facebook Followers: 678,647
• Instagram Followers: 1,268,825
• Pinterest Followers: 86,225

Traeger, Inc. also cultivates this community through digital content and direct interaction. The Traeger App offers hundreds of recipes, and the company hosts live cooking classes and competitive grilling events with Traeger pros. The proprietary GrillGuide® technology leverages this by allowing users to download step-by-step cooking cycles directly to their WiFIRE® controller, simplifying complex cooks for all skill levels.

Regarding channel partners, Traeger, Inc. actively engages in co-promotional activities, confirming that they split promo costs with these partners to drive grill sales to consumers. This focus on wholesale channels is part of a broader strategic shift, as the company is exiting its direct-to-consumer business by redirecting Traeger.com consumers to retail partners' websites. Increased funding for promotional activity was noted as a factor impacting gross margin in the first quarter of fiscal 2025.

The WiFIRE® technology is the backbone of automated support and enhanced user experience. This feature connects the grill to the Traeger App, allowing users to change temperatures, monitor food temps, and add smoke from anywhere, at any time, using a smartphone. The integration extends to the Apple Watch, enabling users to switch grill temperature or activate the Keep Warm Mode right from their wrist. This connectivity provides the data that management uses to confirm robust consumer engagement.

Here's a look at how some of these customer-facing elements relate to recent financial performance:

Finance: review the Q4 2025 promotional spend against the Q1 2025 impact by next Tuesday.

Traeger, Inc. (COOK) - Canvas Business Model: Channels

You're looking at the strategic pivot Traeger, Inc. (COOK) is making across its sales channels as of late 2025, driven by the cost-saving and efficiency-focused Project Gravity initiative. This isn't just tweaking; it's a fundamental re-weighting toward wholesale partners to create a leaner, more profitable business structure.

The company's channel strategy is heavily leaning into established big-box relationships while systematically dialing back its direct engagement. This shift is partly about navigating tariff impacts-Traeger, Inc. expects to offset approximately 80% of its $60 million unmitigated tariff exposure in Fiscal Year 2025 through these structural changes and pricing adjustments.

Large-format retail stores (e.g., Home Depot, Costco in-line).

Large-format retail remains a cornerstone, with products available through major retailers like The Home Depot, Amazon, and Best Buy. However, a specific, high-touch program is being eliminated. As part of Phase 2 of Project Gravity, Traeger, Inc. is exiting the Costco roadshow program by the end of the year. This move, alongside others, is part of the plan expected to contribute approximately $20 million in annualized cost savings. The overall Fiscal Year 2025 revenue guidance is set between $540 million and $555 million.

To give you a sense of the current revenue mix, based on the first quarter of 2025, the core grill business, which flows heavily through these retail channels, accounted for 60.5% of total revenue.

Exiting direct-to-consumer (DTC) sales on Traeger.com to redirect to retail.

This is a definitive strategic move. Traeger, Inc. is redirecting Traeger.com consumers to its retail partners' websites as part of a planned exit from the direct-to-consumer business. The company intends to use its website primarily for storytelling rather than as a sales channel moving forward. This aligns with a broader industry trend where general retail SG&A (Selling, General & Administrative) is often lower than pure-play DTC fulfillment costs; for general retail, SG&A typically runs around 21.07% of sales, compared to a higher burden often seen in direct sales.

Distributor model for certain international markets like Europe.

For international expansion, the model is shifting from direct operation to partnership. Traeger, Inc. is transitioning to a distributor model in European markets that previously operated under a direct sales structure. This is a critical adjustment, especially considering the significant pressure seen in that region previously; Rest of World revenues declined by 32.0% in the second quarter of 2025. However, there are signs of stabilization, as Rest of World revenues showed an increase of 9.9% year-over-year in the third quarter of 2025.

Specialty dealers and independent grill stores.

While specific revenue percentages for specialty dealers aren't public, the overall strategy emphasizes alignment with wholesale partners. The company's focus on strategic pricing shifts and supply chain efficiencies is noted as partially offsetting tariff-related gross margin contraction, which suggests deep collaboration with its entire wholesale network, including specialty dealers. The company is also working to diversify its supply chain outside of China, with a meaningful production shift expected by the end of 2026.

Finance: draft 13-week cash view by Friday.

Traeger, Inc. (COOK) - Canvas Business Model: Customer Segments

You're looking at the core buyers for Traeger, Inc. as of late 2025. These aren't just casual backyard cooks; they represent distinct purchasing behaviors that drive both hardware sales and the recurring revenue engine.

Dedicated BBQ enthusiasts and home chefs seeking premium flavor.

This group is chasing that authentic wood-fired taste. They are the ones who see the grill as a serious cooking appliance, not just a seasonal purchase. They are likely the buyers of the higher-end Ironwood and Timberline series, which command prices well over the entry-level mark. For instance, the Ironwood XL was listed around $\mathbf{\$2,200}$ and the Timberline models were priced at $\mathbf{\$1,700}$ and up in early 2025 reviews. These enthusiasts are key because they drive the demand for the premium consumables that keep them coming back.

Tech-savvy consumers valuing WiFIRE remote control.

This segment values the Internet of Things (IoT) integration that Traeger, Inc. has built into its ecosystem. They want to monitor and control their cooks from their smartphones, using the WiFIRE technology. Models featuring this connectivity, like the Pro 575, were listed for $\mathbf{\$799.99}$ in some 2025 pricing guides, while the Ironwood 650 was listed at $\mathbf{\$1,299.99}$. The IoT kitchen system market itself was projected to grow at a $\mathbf{15\%}$ Compound Annual Growth Rate, showing the importance of this tech-forward customer base to Traeger, Inc.'s long-term strategy. This group is definitely interested in the app integration and the GrillGuide step-by-step cooking cycles.

Mass-market consumers buying sub-$\text{1,000}$ entry-level grills.

This group is price-sensitive but still drawn to the brand's core offering. They represent the volume opportunity, especially as the company works to increase household penetration, which stood at only $\mathbf{3.5\%}$ in U.S. households as of the start of 2025. The Woodridge series is positioned here; the base Woodridge model is the new entry-level offering, replacing the older Pro series. The Woodridge Pro was specifically highlighted as a sub-$\mathbf{\$1,000}$ option, making it the gateway for many new customers into the ecosystem. The company's Q1 2025 grill revenue was $\mathbf{\$86.7}$ million, showing the importance of hardware sales to the top line, even with price pressures.

Existing grill owners driving the high-margin consumables business.

Once the hardware is sold, this segment becomes the most financially critical for sustained profitability. These are the repeat purchasers of wood pellets, rubs, and sauces. Looking at the third quarter of fiscal 2025, consumables revenue hit $\mathbf{\$25.3}$ million, representing about $\mathbf{20.18\%}$ of the total $\mathbf{\$125.4}$ million in revenue for that period. This percentage is significant because consumables generally carry higher margins than the grills themselves. For comparison, in the same quarter, grill revenue was $\mathbf{\$76.6}$ million. The focus on wood pellet sales growth, as noted in the Q3 2025 results, confirms this segment's role in driving profitability, even when overall grill unit volume is down. If onboarding takes 14+ days, churn risk rises.

Here is a snapshot of the revenue contribution from the main product categories for the third quarter ending September 30, 2025:

Finance: draft 13-week cash view by Friday.

Traeger, Inc. (COOK) - Canvas Business Model: Cost Structure

You're looking at the major outlays that keep Traeger, Inc. running, and right now, the cost side is heavily influenced by restructuring and external pressures like tariffs. Honestly, managing these costs is key to hitting their profitability targets for the year.

The cost structure is clearly burdened by the expense of making and moving the product. The Cost of Goods Sold (COGS) is a significant line item. For the third quarter of fiscal 2025, the Cost of Sales was reported at $76.85 million on total revenues of $125.4 million. This pressure is visible in the Gross Profit Margin, which contracted to 38.7% in Q3 2025, a year-over-year contraction of 360 basis points. A major driver here is the tariff impact; in Q3 2025 alone, tariff costs totaled $8 million, which accounted for 670 basis points of unfavorability on the gross margin. The company has stated an expectation to offset 80% of its total $60 million tariff exposure for fiscal 2025.

To address operational costs, Traeger, Inc. is executing Project Gravity, a multi-step restructuring program. The anticipated pre-tax charges for currently known actions under this program range from $25.0 million to $31.0 million. This total charge is broken down into expected pre-tax charges for professional fees and other related costs of $16.0 million to $21.0 million, plus severance and other personnel-related costs estimated between $9.0 million to $10.0 million. The goal is substantial completion by the end of 2026, targeting annualized pre-tax cost savings of about $58 million.

Operating expenses show a mixed picture. Sales and marketing expenses are showing some reduction, which is a positive sign for cost control in that area. For the third quarter of 2025, Sales and Marketing expenses were $20.0 million, down from $26.2 million in the third quarter of the prior year. General and administrative expenses were $22.2 million in Q3 2025.

Inventory holding costs are a factor, as the company carries substantial stock to meet demand. Inventory levels at the end of the third quarter of 2025 stood at $114.6 million, up from $107.4 million at the end of 2024.

Here's a quick look at some of the key cost components from the Q3 2025 period and related figures:

The supply chain and logistics expenses are implicitly high, as evidenced by the direct tariff impact and the strategic shift in Project Gravity Phase 2, which includes supply chain and manufacturing efficiencies and a transition to a distributor model in certain European markets. Also, the company is exiting its direct-to-consumer business via Traeger.com to redirect shoppers to retail partners.

Finance: draft 13-week cash view by Friday.

Traeger, Inc. (COOK) - Canvas Business Model: Revenue Streams

You're looking at the core ways Traeger, Inc. (COOK) brings in money, which is heavily weighted toward hardware sales but increasingly reliant on the recurring consumables stream. The company's financial outlook for Fiscal Year 2025 reflects this dynamic, with total revenue guidance set between $540 million and $555 million, representing an expected decline of 8% to 11% versus the prior year.

The revenue streams break down into four main categories, each with its own near-term performance characteristics as of late 2025.

• - Grill sales (hardware), expected to decline high single digits in FY2025.
• - Consumables (pellets, rubs, sauces), a high-margin, reoccurring stream.
• - Accessories (e.g., MEATER smart thermometers).
• - FY2025 total revenue guidance of $540 million to $555 million.
• - Consumables revenue grew 12.3% to $25.3 million in Q3 2025.

To give you a clear picture of the most recent segment performance, here's the breakdown from the third quarter of Fiscal Year 2025, which ended September 30, 2025:

The hardware side, the grill sales, is where you see the most volatility and the pressure mentioned in the guidance. For instance, in the second quarter of 2025, grill revenues were down a significant 21.9% to $74.2 million year-over-year, driven by lower unit volume. So, while Q3 showed a slight rebound in grill revenue to $76.6 million, the overall annual expectation suggests a contraction for the full year, which is why the total revenue guidance is down year-over-year.

The consumables stream is the bright spot for margin and recurrence. In Q3 2025, this segment grew 12.3% to $25.3 million, primarily fueled by wood pellet sales. This contrasts with Q2 2025, where consumables grew 7.5% to $36.4 million, showing some quarterly fluctuation in the growth rate.

Accessories revenue, which includes the MEATER smart thermometers, continues to face headwinds. In Q3 2025, accessories revenue was $23.5 million, a decrease of 4.3% compared to the prior year. This follows a steeper drop in Q2 2025, where accessories fell 11.9% to $34.9 million, largely attributed to lower MEATER sales. Management specifically noted that the FY2025 revenue outlook assumes continued softness in accessories revenue due to anticipated decreases in MEATER sales.