Actress Jennifer Garner’s Once Upon a Farm built its reputation on organic foods and convenience that parents could trust. Its growing popularity eventually helped take the children’s food brand to Wall Street in February 2026.
The company made a strong stock market debut, opening at $21 per share, above its $18 initial public offering price.
But less than nine months after its stock market debut, a single product recall has cast uncertainty over the company’s future, raising questions among parents and investors alike.
Once Upon a Farm shares plunged about 37% on Nov. 2 following the nationwide recall of its popular Tractor Wheels toddler snacks over a potentially fatal choking hazard. The stock touched an all-time low of $8.83 the following day, nearly 58% below its IPO opening price.
Despite a slight recovery, the stock has lost about 44% over the past month, and the financial fallout is only beginning to emerge.
During its Nov. 12 earnings call, Once Upon a Farm revealed that the recall could cost the company up to $30 million, while parents hoping to see the snacks return to stores may have to wait until 2027.
The company has also slashed its annual sales outlook, adding to concerns about how quickly it can recover from the crisis.
Once Upon a Farm reveals new timeline for recalled toddler snacks
During its third-quarter earnings call, CEO John Foraker provided an update on the company’s investigation into choking complaints involving the recalled Tractor Wheels Organic Toddler Soft-Baked Bars.
The company announced the nationwide recall on Oct. 30 after receiving three reports of potential choking incidents involving children.
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According to the FDA’s safety advisory, the snacks could form a dense, dry and sticky mass when chewed, potentially obstructing a child’s airway. Some reported incidents required emergency intervention and hospital observation.
Once Upon a Farm has hired independent product safety experts to evaluate the snacks, determine potential causes of the incidents and identify necessary changes before production can resume.
“We expect this process to take eight to 10 weeks,” Foraker said.
The investigation includes reviewing product formulations, ingredients and retained samples. The company is also considering recipe reformulation, product design changes and additional information on packaging.
However, the eight-to-10-week assessment does not mean the snacks will automatically return to shelves when that period ends.
Chief Financial Officer Larry Waldman said the company does not anticipate bringing Tractor Wheels back to market until sometime in 2027.
Foraker said the company would take the time necessary to complete the appropriate testing and independent validation before resuming sales.
The disruption affects a significant portion of Once Upon a Farm’s business.
According to Waldman, Tractor Wheels were sold in more than 20,000 retail locations. The company is now working through the costly process of removing and disposing of affected inventory.
The snacks accounted for approximately 18% of the company’s net sales during the first nine months of 2026.
The company has also removed planned Tractor Wheels shipments from its fourth-quarter forecast, including products intended to support new retail distribution and early 2027 promotions.
Once Upon a Farm slashes sales outlook despite strong growth
The recall has overshadowed what would otherwise have been a strong quarter for Once Upon a Farm.
According to its third-quarter financial results, net sales increased 34.9% from a year earlier to $89.1 million, driven largely by higher sales volumes.
The company also narrowed its quarterly net loss to $3.8 million from $11.3 million a year earlier.
And as the recall began after the September quarter ended, its direct financial consequences were not reflected in these results.
But now for the question looming for investors: Once Upon a Farm now expects full-year sales of between $290 million and $300 million, down from its previous forecast of $327 million to $335 million.
The company also expects an adjusted EBITDA loss of $4.5 million to $7 million, reversing its previous expectation of a $3 million to $4.5 million profit on that measure.
Waldman said the potential $30 million in recall-related costs includes retailer returns and chargebacks, legal expenses, other recall costs and affected inventory at its manufacturing partners. The company is pursuing possible insurance recoveries, although the timing and amounts remain uncertain.
The revised outlook also assumes no additional Tractor Wheels sales this year and allows for some potential weakness in demand for the company’s other products. The financial impact is especially significant because the company had been expanding its retail distribution and introducing new products to reach more families.
Once Upon a Farm will launch new products
Beyond the financial damage, Once Upon a Farm faces another challenge: maintaining parents’ confidence in its remaining products.
Foraker acknowledged that some consumers have expressed concerns following the recall.
“Obviously some consumers are calling in, and they are concerned about what they have heard,” he said.
However, he maintained that the broader response has been supportive, with many parents appreciating the company’s decision to recall the products.
Management said early retail sales data showed no decline in demand for other Once Upon a Farm products in the nearly two weeks following the recall.
“We do not see any negative impact on the rest of the portfolio right now,” Foraker said, while cautioning that it was still early.
He also said retailers remained supportive of the brand and had not changed their existing plans for its other products. Still, regaining Tractor Wheels’ former shelf space may not happen immediately.
“We won’t get all of it right away,” he said.
Meanwhile, Once Upon a Farm is moving ahead with plans to expand its product offerings in 2027.
The company expects to introduce new dry baby snacks at major national retailers in the first quarter and to launch products in an entirely new category in the first half of the year. It also plans to repackage and reposition its existing fruit and vegetable blends as Superfood Blends in January.
These launches could help the company maintain its presence in stores while Tractor Wheels remain unavailable.
For parents who already purchased the recalled snacks, the FDA continues to advise against feeding them to children. The recall covers all flavors and lots, including products that may have already expired.
Consumers can return the affected snacks to retailers for refunds or contact Once Upon a Farm at [email protected].
