In a conference call with investors, Beyond Meat President and CEO Ethan Brown said the company faced tough comparisons to the second quarter of 2022, when a new beef jerky product generated sales and restaurants were reopening and placing big orders.īut Brown said the company is also struggling to appeal to new customers because of perceptions that its products are unhealthy and overly processed.
That’s down from the $375 million to $415 million it forecast at the end of the first quarter.īeyond Meat’s shares fell 10% in after-hours trading Monday. Beyond Meat now expects revenue between $360 million and $380 million for the year. The El Segundo, California-based company lowered its full-year revenue forecast as a result. Considering our revenue projections of roughly $1.1 billion and 6% margins, almost $66 million in net income is possible by 2023.Plant-based meat substitute maker Beyond Meat said its revenue plunged 30.5% in the second quarter as consumer demand for its burgers, sausages and other products fell despite price cuts. However, it’s reasonable to assume that as Beyond Meat’s business gains scale and the company expands aggressively, it can boost margins to the levels of Tyson Foods in the next few years, so we estimate roughly 6% margins by 2023. Though BYND’s margins remained negative at close to -13% in 2020 (due to the impact of the pandemic), the company’s operations are expected to improve and turn profitable in 2022, with projected margins of 3%. While Tyson Foods posted almost 5% margin in FY2020 (ending 3rd Oct, 2020), the company is a dominant force in the market with its size being significantly larger in comparison, which makes it probably unreasonable to expect similar margins for Beyond Meat, which has still not made any profits. They have sharply improved from -93.3% in 2016 to -4.2% in 2019. Organic growth along with benefits from the recent partnerships are expected to support continued healthy growth in retail as well as the restaurant segments of Beyond Meat, potentially taking the company’s revenues to almost $1.1 billion by 2023.Ĭombine revenue growth with the fact that Beyond Meat’s net income margins (net income, or profits after all expenses and taxes, calculated as a percent of revenues) are on an improving trajectory. Additionally, Beyond Meat is introducing its plant-based meatballs in Coles, the second largest supermarket chain in Australia with over 2,500 stores. After much anticipation, Beyond Meat announced a three-year partnership with McDonald’s in February 2021, under which BYND will be McDonald’s preferred supplier for the patty in the McPlant, a new plant-based burger being tested in select McDonald’s markets globally. This is, in fact, after BYND partnered with Starbucks, Yum Brands, and Sinodis. BYND entered into a partnership with Alibaba Group, whereby its products will be available in Freshippo stores (Alibaba’s supermarkets) in Shanghai.
After tying up with Dunkin’ soon after its IPO, Beyond Meat entered China in 2020. Additionally, the company’s new partnerships will also drive impressive top line growth. Does this make the stock expensive considering the recent volatility in the stock price? Probably not, considering that revenues are likely to grow almost 2.7x by 2023, with net income turning positive in 2022 and growing steadily thereafter, generating continued returns for shareholders.įirstly, the gradual lifting of lockdowns in recent months will help the restaurant segment register strong growth along with sales from retail chains. With a market cap of over $9.6 billion, the stock now trades a little over 17x projected 2021 revenues, despite the fact that 2020 was the toughest year for the company due to the pandemic and it also missed analysts’ expectations for Q1 2021. (Photo Illustration by Drew Angerer/Getty Images) Getty Imagesīeyond Meat Inc stock (NASDAQ: BYND), a leading-edge food company that produces meat directly from plants – an innovation that provides taste and texture of animal-based meat products along with nutritional benefits of plant-based products – has seen its stock rise by over 160% from the lows seen in March 2020. Beyond Meat is a Los Angeles-based producer of plant-based meat substitutes, including vegan versions of burgers and sausages. Since going public in early May, Beyond Meat's stock has soared more than 450 percent and its market value is over $8 billion. in a refrigerator, Jin the Brooklyn borough of New York City. NEW YORK, NY - JUNE 13: In this photo illustration, packages of Beyond Meat "The Beyond Burger" sit.
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