Submitted by Hardscrabble Farmer
Beyond Meat shares tumble after jerky launch leads to wider-than-expected loss
Key Points
- Beyond Meat reported a wider-than-expected loss for its first quarter as it offered steeper discounts and cheaper prices to international consumers.
- The launch of the company’s plant-based jerky weighed heavily on margins, the company said.
- The company’s gross margin was 0.2% of revenue during the quarter, tumbling sharply from its gross margin of 30.2% a year ago.
- Beyond Meat shares fell as much as 25% in extended trading, extending the stock’s losses from earlier in the day.
Beyond Meat on Wednesday reported a wider-than-expected loss for its first quarter as the launch of its new plant-based jerky weighed heavily on margins.
Shares of the company fell as much as 25% in extended trading, extending the stock’s losses from earlier in the day. Beyond’s stock closed Wednesday down 13.8% ahead of the company’s earnings report.
Here’s what the company reported compared with what Wall Street was expecting, based on a survey of analysts by Refinitiv:
- Loss per share: $1.58 adjusted vs. $1.01 expected
- Revenue: $109.5 million vs. $112.3 million expected
Beyond reported first-quarter net loss of $100.5 million, or $1.58 per share, wider than its net loss of $27.3 million, or 43 cents per share, a year earlier.
In a statement, CEO Ethan Brown said that the company saw a “sizable though temporary” hit to its gross margin to support strategic launches, namely that of its plant-based jerky through its joint venture with PepsiCo. The company’s gross margin was 0.2% of revenue during the quarter, tumbling sharply from its gross margin of 30.2% a year ago.
“While we’re thrilled with its early sales performance and strong customer response, Beyond Meat Jerky manufacturing, still in its infancy, was a significant headwind on gross profitability this quarter,” Beyond CFO Phil Hardin told analysts on the conference call.
Hardin said that the large-scale launch of the jerky was “unprecedented” for Beyond. The product is available in 56,000 locations. As a result, the company’s production was “expensive and inefficient,” according to Hardin.
But the company sought to soothe investors. Executives said that the first quarter is expected to be the low point for its margins in 2022, and jerky production should be much more efficient by the second half of this year.
Excluding items, the company lost $1.58 per share, wider than the $1.01 per share expected by analysts surveyed by Refinitiv.
Net sales rose 1.2% to $109.5 million, falling short of expectations of $112.3 million.
Total volume, which strips out the impact of pricing or currency fluctuations, increased 12.4% in the quarter. However, net revenue per pound shrank by 10%. The company said it increased discounts for international customers and reduced prices in the European Union. Brown also said that consumers are shifting from refrigerated meat substitutes to frozen alternatives.
In the United States, Beyond’s revenue rose 4%, helped by the grocery launch of its plant-based jerky. However, U.S. food service revenue, which includes sales to restaurants and college campuses, fell 7.5% during the quarter. And although its grocery segment reported sales growth of 6.9%, the company said products besides the jerky saw their sales shrink.
Outside of its home market, Beyond’s revenue shrank 6.2%, although the company said it sold more pounds of its meat substitutes in both international grocery stores and food service outlets. Beyond also said foreign exchange rates hit its international sales.
The company reiterated its full-year revenue forecast of $560 million to $620 million.
Read the full earnings report here.
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The linked CNBC article is from May 11th. BYND is currently trading at $25.
So, essentially unchanged.
What I don’t understand is how when I was in high school we accused the school of serving us soy burgers because they were cheap, and now people pay extra for fake meat. Being that I’m a cheapskate (for most things), I would probably buy fake meat if it 1) tasted good and 2) were cheaper than real meat – which it should be.
Unfermented soy is a testosterone killer.
Plant-based jerky. Isn’t that called celery? You know, something that you chew for a while until you get down to just gristle?
I don’t eat meat based jerky, why would I want fake-flavored celulose?
I saw the movie. Soylent green is people. That was my first thought when I heard about it, and it still goes.
In the movie, remember the $700 jar of strawberry jam?
Harry’s Organic Strawberry’s are priced right now at $19.99 a pint in Kalifornia.
Yes, we are on the way.
Beyond (the price of) Meat. Sales will sky rocket after they finish killing off all the chickens and cows, destroying real food manufacturing. Basically a great strategy destroying competition from real food producers and when there’s nothing left to eat they make trillions. Brilliant. Eating food is so inefficient. planting, harvesting, all the regulations then we have to spend $10 in gas to get to the grocery store, unload it all, take it out of all those earth destroying plastic bags then all the time required to cook it and at least 20 minutes to eat it. Then we have to clean those dirty dishes. Lets make eating more efficient like the gas station;. Just pull up to the pump connect the intravenous feeding tube and/or shove the tube down the throat and inject food solution. Sorta like they do it at the feed lots for cows.
Story today in da Shit Ledger about birds flying into glass buildings …. resulting in over ONE BILLION dead birds annually …. in addition to another billion killed by wind turbines and global warming.
Why aren’t we picking up these dead birdie bodies and turning them into jerky or other delicious food, like Bird Spam? It could cure hunger. And relieve your concerns about efficiency.
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Of course, the article focused on this Dead Bird CRISIS (!!!!!) which could lead to their extinction which would lead to Other Very Bad Shit ….. which of course led to a discussion about funding studies costing millions of dollars ….. of course they suggest modernizing all existing windows in Murika to prevent bird deaths. Make sense if you think about it. ha.
Bird Spam….. Love ya..
I always call them Bird blenders….
“Bird Spam”
Now thats funny!
Or gather the bird remains from under the wind turbine farms – they are already minced and ready to go.
Beyond appetizing…beyond mass appeal…and almost certainly beyond nutritious.
MMmmm.
Wait.
‘da f*#k am I eating here?
Get rid of this mush.
Where’s the beef, Clara?
There’s something about the name alone I find repulsive. Beyond Meat -WTF? Americans would eat a shit sandwich and ask for seconds if you told them it’s good for the Planet.
It’s Beyond Food.
Ha, who in their right mind would want those beyond sanity bullshits.
Awwww….too bad; so sad.
Government controlled production of ALL food will lead to Government controlled shortages of ALL food.
The Elite Bloodline Families are well into their second phase of population reduction.
FAKE FOOD FOR FAKE PEOPLE………………….democrats lap this shit up !
Don’t eat the jabbed ones!
Sarc, just in case.
Here are the ingredients:
Water, pea protein*, expeller-pressed canola oil, refined coconut oil, rice protein, natural flavors, dried yeast, cocoa butter, methylcellulose, and less than 1% of potato starch, salt, potassium chloride, beet juice color, apple extract, pomegranate concentrate, sunflower lecithin, vinegar, lemon juice concentrate, vitamins and minerals (zinc sulfate, niacinamide [vitamin B3], pyridoxine hydrochloride [vitamin B6], cyanocobalamin [vitamin B12], calcium pantothenate).
Canola oil, like all seed oils, is poisonous to humans. Heart disease anyone? Natural flavors contains all kinds of shit not fit for humans. The rest of the crap is non-nutritious and some of it is also unfit for consumption. Even the “water” is suspect and even if clean to some degree, which I doubt, it is first in weight and is there to absorb the shit further down the list that would probably stick to your tongue otherwise.
You have been eating this crap forever- think potato chips or basically any processed food. Nothing really new -just non food under another brand.
Methyl cellulose is a chemical compound derived from cellulose. It is sold under a variety of trade names and is used as a thickener and emulsifier in various food and cosmetic products, and also as a bulk-forming laxative. Like cellulose, it is not digestible, not toxic, and not an allergen.
Yup. Parmesan “cheese” in the plastic green Kraft container. Cellulose.
It may be safe, but it is filler and a rip off.
In Australia, Beyond Meat fake hamburger costs 4 times more than real hamburger. Really. Are there truly enough people willing to pay 4 times more for fake hamburger than real hamburger? That is insane.
You are not takiing the needs of the elites into consideration and that will lower your social justice credit score.
Keep up.
Almost everyone I know pays $4-7/day (sometimes 2x) for coffee I can make better at home for $0.25
So, yes, probably.
You see, they don’t care about the quality or price, just that they can be lazy and served.
Look how many people pay nearly $20 for the fast food meal crap. For $20 I can make 5 far better burgers and fries at home and they are actually ‘food’ compared to the ‘filler’ at fast food outlets.