Beyond Meat Shares Skyrocket after First Quarterly Report

Darnell Taylor
June 9, 2019

The ten-year-old vegan burger maker had also reported its quarterly earnings well-above Wall Street's estimate, its first result as a public company, and added that it had been expecting a net revenue of $210 million this year, a 140 percent upsurge from a year earlier. Zandbergen is expected to start making Beyond Meat products next year at a new facility in the Netherlands.

"We're being very conservative", CEO and president Ethan Brown said.

The addition of Beyond Meat in grocery stores has caused some disagreement about where plant-based meat should be placed, according to an article in Reuters that interviewed nine USA grocers.

Expectations were high heading into Beyond Meat's report on Thursday, with its shares having jumped about 400% since its initial public offering a month ago. Impossible Foods and Nestle - which will launch a Sweet Earth-brand plant-based burger this fall - are others. And on Thursday, the company will have to justify that sky-high price with hard numbers when it releases its first-quarter earnings.

Beyond Meat said growth in total Q1 2019 net revenues was driven primarily by an increase in sales of The Beyond Burger, the expansion in the number of retail and foodservice outlets, and stronger demand from existing customers.

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"We've also made the right choices on ingredients, and I think our competitors have made some missteps on that issue", he said.

But while Beyond Meat requests stores sell its products next to real meat, there are no contractual obligations on product placement, according to interviews with nine retail chains. At the same time, sales of conventional meat were up 1% to $85 billion. One-third of specialty food shoppers have said they were buying a plant-based food and beverage, so more companies are bound to invest in this space. While a great alternative for consumers conscious of the environment, the company still needs to put in the work to get more takers as its products cost much more than beef burgers. Tyson Foods, which sold its minority stake in Beyond Meat shortly before its recent IPO, announced that it is launching its own meatless products this summer.

However, Impossible has reached out to distributors and restaurants to let them know that an Impossible shortage is "entirely possible" and that demand is 'outpacing the company's manufacturing capabilities, ' as first reported by Eater.

Beyond Meat now has a market cap of $6.0 billion and had this year's best first day for an IPO in the U.S. The company's $25 IPO price tripled within three days, giving Beyond Meat a value of $4.4 billion.

The better-than-expected results and forecast led the stock to soar almost 21% in extended trade on Thursday.

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