How This Meat Snack Company Devoured The Competition And Became A $1 Billion Business |
Over the past few years, Chomps has become the fastest-growing meat snack in America—despite the fact that it couldn’t keep up with its customers’ enormous appetites. “We've been living in this endless world of allocation where we can only fill so much of the demand,” says Rashid Ali, cofounder and CEO of the Chicago-based snack brand.
Not anymore. Consider Chomps unleashed. This year is the first, Ali says, where Chomps is up to the challenge and has enough infrastructure to produce enough meat sticks to satisfy the estimated 2 million it sells a day.
Founded in Naples, Florida in 2012, Chomps is on track to top $900 million in annual revenue this year, according to Forbes estimates—up from $660 million last year—with 10% of the meat snack market.
Its meat sticks—made with grassfed and finished beef, venison and antibiotic-free turkey—are resonating with consumers seeking on-the-go protein, particularly women, who make up about 70% of its customers. Chomps sticks can now be found in some 50,000 retailers, including Walmart, Target, Costco, Kroger, Publix and H-E-B.
According to Forbes estimates, Chomps is worth north of $1 billion—or more if it reaches $1 billion in annual revenue. Ali, 45, and cofounder Pete Maldonado, 44, control the majority of the company. Maldonado has an estimated 35% stake (worth at least $350 million) and Ali owns an estimated 20% (worth $200 million).
The cofounders say Chomps has been profitable since it was 30 days in, but its profitability is limited by the cut that its manufacturers take, as well as the impact of rising prices for beef and other key ingredients. Forbes estimates Chomps’ 2025 EBITDA was about $50 million, or an EBITDA margin of roughly 7%. Chomps declined to comment on its financials.
“Just having Chomps getting to the level where it is right now, and then on top of it, understanding that we've only scratched the surface of where it can go is just mind boggling to me,” says Maldonado, who moved from the co-CEO role to chairman last year. “Now is the first time we've got all the capacity from a production standpoint, and so now we get to find out really how high is high.”
Maldonado and Ali met thanks to mutual college friends who introduced them at a poker-themed birthday party in Chicago. Maldonado, a personal trainer, had an idea for a grassfed meat startup and the pair decided to go in together, with each putting up a modest $3,250. The business’ first iteration was a grassfed alternative to e-commerce meat boxes........