Economy

Beyond Meat shares leap following first report since IPO

Beyond Meat shares leap following first report since IPO”

Beyond Meat reported a net loss of $6.6 million, or 95 cents per share, and the company said that its earnings before interest, taxes, depreciation and amortization, or EBITDA, was $2.1 million after adjusting for one-time events.

Beyond Meat, however, has increased the efficiency of its manufacturing process, Brown said, and it has increased its overall manufacturing capacity while adding new deals with suppliers to meet the growing demand.

The burgers, a hit with consumers switching to a "flexitarian" diet, feel, smell and taste like real meat. Early on, Beyond Meat focused much of its expansion on getting its products into popular grocery store chains such as Safeway, Whole Foods, Kroger and Wegmans.

The debate is about to get more noisy as Beyond Meat, which began selling its burger patties to retailers about three years ago, begins to face more plant-based competitors in stores.

The maker of plant-based hamburgers and sausages said it expects net revenues in 2019 to exceed $210 million, an increase of more than 140% compared to 2018. The plant-based burger company did not comment, but noted in its regulatory filings that its growth could be stunted depending on placement. Later that month, Beyond shared that it will start making its product in the Netherlands next year, in order to reach European customers more quickly. But even its CFO told Food Dive last month that the latest addition to its coffers may not be enough.

But the bulk of that growth came from sales to restaurants, which increased almost 500% in the quarter thanks to deals with chains such as Carl's Jr. and Del Taco.

"We are very conservative and view this as a floor", Chief Executive Officer Ethan Brown said on a conference call when asked about the revenue forecast. As sales grow, more companies are jumping into the crowded plant-based space. 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.

The company's stock, which has a market value of $7.8 billion, is up more than 400% since it went public at the beginning of May.

Brown also expressed confidence that the company can scale up quickly if it enters into further partnerships with restaurant chains.

Tyson Foods Inc, the largest US meat processor, is also working on its own line of alternative protein products after it sold its stake in Beyond Meat in April.

Beyond Meat declined to comment ahead of its first earnings report scheduled for Thursday afternoon. As of Friday morning, shares were trading at United States dollars 128 per share, representing over a 400% increase since then, making Beyond Meat the best performing IPO this year so far.



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