Beyond Meat Inc. gets a rebound from an insatiable appetite among meat eaters.
The plant-based meat maker reported first-quarter net profit of $ 1.8 million, or 3 cents per share, compared to a loss of $ 6.6 million, or 95 cents per share, for the same period of the previous financial year. Revenues increased 141% to $ 97.1 million compared to $ 40.2 million for the same period last year. Analysts polled by FactSet had estimated a loss of 7 cents per share on average sales of $ 88.8 million.
share up more than 7% in after-hours trading. Beyond Meat stock has almost quadrupled from its original list price of $ 25, and stocks have risen 26.5% in the past 12 months, while the S&P 500 index
decreased by 0.5%.
The results “validate the continued strength of the plant-based food movement” and “have helped alleviate the unprecedented challenges of COVIDs” for business operations, said Beyond Meat CEO Ethan Brown during a conference call with analysts after the income statement. He said uncertainty about the short-term impact of the epidemic has prompted Beyond Meat to withdraw its financial outlook for 2020, but meat-related constraints provide Beyond Meat with a long-term opportunity to significantly expand its reach to consumers and retailers.
Retail demand was particularly strong, although to some extent offset by a “disruption in food service sales” during a national foreclosure in March, said the company’s chief financial officer, Mark Nelson, during the ‘call. Beyond Meat’s partner restaurants include McDonald’s Corp.
, Del Taco Restaurants Inc.
and Dunkin ’Brands Group Inc.
Beyond Meat offers alternatives to meat that could find new light as the coronavirus pandemic damages the traditional meat supply chain.
Factory closings at Tyson Foods Inc.
, the largest meat company in the United States; Smithfield Foods Inc., the world’s leading producer of pork; and JBS SA, the world’s largest meat company, highlight the challenges everyone faces in producing meat while preserving the safety of workers in factories, which have become hot spots for the spread of COVID-19. The closings have resulted in a 25% reduction in pork production and a 10% reduction in beef production in the United States, according to the United Food and Commercial Workers International Union.
Tyson’s stocks were crowded on Monday after announcing that production disruptions had taken a toll on profits.
See also: Tyson Foods stock collapses after lost profits and sales
Disruptions in meat production amid growing demand “no doubt” will drive prices up, said Sysco Corp.
executive said during a conference call with analysts. At the same time, some Wendy’s
restaurants have temporarily removed burgers from the menu. A random sample of Wendy’s menus found that 5% to 10% was made entirely from chicken, Stifel analysts said in a note Tuesday.
Wendy’s has acknowledged that certain menu items “may be temporarily limited” in some restaurants, but it is unclear how many of its approximately 5,800 American restaurants have been affected.
See also: Sysco stocks rise following missing profit forecasts, but expect business to continue improving
Beyond Meat is expected to continue to experience declining revenues in the current quarter after starting to sell products through nearly 4,200 Starbucks Inc.
in China on April 21. In addition, Starbucks announced Monday that it will open more than 85% of its corporate stores in the United States by the end of this week, and 90% in early June – albeit with limited hours and no dinner. -in service.
Brown said the company also intends to leverage commercial ties with professional athletes such as NBA Kyrie Irving and Chris Paul and Olympian Lindsey Vonn to highlight its health benefits.