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Introduction and thesis
Central Garden & Pet Company (NASDAQ:CENT) is a leading innovator, producer, and distributor of branded and private label products for the lawn and garden as well as pet supplies markets. The company operates through two segments: Pet and Garden.
CENT is a highly quality business, in what we consider a lucrative industry, underpinned by a competent management team. This alone positions the company well for long-term growth, particularly if it can continue to acquire businesses regularly to supplement its organic trajectory.
We are limited in our concerns, although expect the coming year to be difficult as the macroeconomic environment weighs heavily on the company. This limits its scope for upside, particularly when its valuation is not overly depressed. Our belief is that investors are likely confident in the company’s ability to return to its prior trajectory, reflecting its strong