In today's video I look at Tattooed Chef's (NASDAQ: TTCF) recent acquisition of New Mexico Food Distributors and Karsten Tortilla Factory. Below I share some green flags and one red flag investors should note with this deal. Green flags: Tattooed Chef reaps a few strategic benefits from this deal. It is increasing its manufacturing capacity and diversifying into the Hispanic/Southwest market. It is also expanding outside the frozen food market and into snacks and other ambient products. Tattooed Chef gave an update on its future outlook, which involves a significant improvement in revenue growth. Before the acquisition it was expecting 49% year over year for revenue. After the acquisition it expects 58% to 63% growth, and this guidance will be updated later this year when another production plant opens up. Red flag: With the updated guidance for FY 2021, Tattooed Chef expects adjusted EBITDA in the range of $2 million to $4 million and is giving no guidance on net income, when previously it guided for adjusted EBITDA in the range of $8 million to $10 million and net income in the range of $2.5 million to $5 million. As investors we should note that the decrease in adjusted EBITDA and lack of guidance on net income might suggest a loss for the year. Click the video below for my full thoughts. *Stock Prices used were the Midday prices of May 3, 2021. The video was published on May 3, 2021. 10 stocks we like better than Tattooed Chef, Inc.When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.* David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Tattooed Chef, Inc. wasn't one of them! That's right -- they think these 10 stocks are even better buys. See the 10 stocks *Stock Advisor returns as of February 24, 2021 Jose Najarro owns shares of Tattooed Chef, Inc. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Jose is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.Source