Karat Packaging distributes and manufactures single-use disposable foodservice products, including food and take-out containers, bags, boxes, cups, lids, cutlery, straws, and tableware in plastic, paper, and compostable forms. Karat sells primarily to national and regional restaurant chains (including Chipotle, Panda Express, and In-N-Out), foodservice distributors, and smaller retail customers like bubble tea and coffee shops, as well as through e-commerce platforms. Karat makes money by sourcing products from a global network of roughly 150 vendors and reselling them at a markup, with gross margins driven by the spread between landed product costs — vendor pricing, ocean freight, and import tariffs — and selling prices. Approximately 91% of sales are import-based, with the remainder from domestic manufacturing. Karat operates ten U.S. distribution centers and owns a fleet of 40 trucks to support reliable, cost-effective fulfillment. The company's key growth bets are paper bags (driven by state plastic bag bans), broader eco-friendly products under its Karat Earth line, and expansion into new verticals like airlines and entertainment venues. Karat's roughly 8,400 SKUs and reputation for supply chain reliability — built during COVID-era shortages and reinforced through recent tariff volatility — support high customer retention among its top accounts. Capital allocation priorities include a quarterly dividend of $0.45 per share and a $15M share repurchase program, while maintaining balance sheet flexibility for distribution network expansion and potential M&A.