Here’s Why Olo Inc. (OLO) Should Be in Your Buy List

Artisan Partners, a high value-added investment management firm, published its ‘Artisan Small Cap Fund’ third quarter 2021 investor letter – a copy of which can be downloaded here. A return of -1.20% was recorded by its Investor Class: ARTSX, -1.17% by its Advisor Class: APDSX, and -1.13% by its Institutional Class: APHSX for the third quarter of 2021, all above the Russell 2000® Growth Index that delivered a -5.65% return and the Russell 2000® Index that was down by -4.36% for the same period. You can take a look at the fund’s top 5 holdings to have an idea about their best picks for 2021.

Artisan Small Cap Fund, in its Q3 2021 investor letter, mentioned Olo Inc. (NYSE: OLO) and discussed its stance on the firm. Olo Inc. is a New York, New York-based restaurant company with a $3.7 billion market capitalization. OLO delivered a -12.13% for the past month and it closed at $24.55 per share on December 03, 2021.

Here is what Artisan Small Cap Fund has to say about Olo Inc.  in its Q3 2021 investor letter:

“Olo is a cloud-based software platform helping multi-location restaurant brands manage their digital operations (ordering, delivery, menu options). The company has over 400 brand customers— notably, Wingstop, Shake Shack, Five Guys, Sweetgreens and Chili’s— with 69,000 active locations. Last year, Olo experienced considerable growth as consumers’ preferences for digital ordering/delivery skyrocketed amid the pandemic. While a climb in vaccination rates has increased mobility more broadly, we believe the restaurant industry’s shift to the digital channel during the pandemic could be long lasting. Olo is in the early stages of penetrating this large addressable market—approximately 300,000 US restaurant locations in the US chain segment, Olo is only 21% penetrated—and we believe the company can pull additional growth levers by adding new products (payments, data/analytics), moving into the small-andmedium-sized business segment and pursuing international growth. We used Q3’s pullback to add to our position.”

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Based on our calculations, Olo Inc. (NYSE: OLO) was not able to clinch a spot in our list of the 30 Most Popular Stocks Among Hedge Funds. OLO was in 18 hedge fund portfolios at the end of the third quarter of 2021, compared to 14 funds in the previous quarter. Olo Inc. (NYSE: OLO) delivered a -33.74% return in the past 3 months.

Disclosure: None. This article is originally published at Insider Monkey.