Beyond Meat’s Worse-Than-Expected Earnings

Beyond Meat’s Worse-Than-Expected Earnings

over 3 years ago2 mins

Mentioned in story

Let’s not beat about the bush: Beyond Meat – the plant-based meat company – reported significantly worse-than-expected quarterly earnings earlier this week 🌳

What does this mean?

Now that the mad dash to stockpile fridge-freezers has died down, Beyond Meat – which analysts expected to report a profit last quarter – ended up posting a loss. And while sales from US grocery stores jumped by 40% compared to the same time last year, that was a long way off the almost-200% growth the company managed in the first six months of 2020 🛒 Worse still, sales in its food service segment – which includes pandemic-hit restaurants and bars – are still on the decline. That led investors to put the company out to pasture: its shares dropped massively, probably because notoriously stable food companies aren’t as appealing when they’re not quite so stable after all.

Why should I care?

Plant-based menus are all the rage these days: even McDonald’s just announced it’d be launching one of its own. No one knows who its supplier will be, but the food giant did work with Beyond Meat last year to trial run a meatless burger 🍔 Beyond Meat, for its part, has been pretty vague on the issue, but if it does end up stuffing McDonald’s buns, the deal could help drive sales in its pandemic-battered food service segment. At least Pizza Hut isn’t playing games in the meantime: it’s said it definitely will add Beyond Meat’s meat-free sausage to its menu.

Beyond Meat shares drop Tuesday after weak earnings

Some plants are clearly more popular than others right now: weed stocks have had a pretty staggering run in the last week, after Americans voted for marijuana legalization in five states, along with a president who might be more open to making it country-wide 🇺🇸 Let’s hope that rally helps Aurora Cannabis – an industry heavyweight that announced lackluster results on Monday – chill out, man.

Burger eating gif
Finimize

BECOME A SMARTER INVESTOR

All the daily investing news and insights you need in one subscription.

Disclaimer: These articles are provided for information purposes only. Occasionally, an opinion about whether to buy or sell a specific investment may be provided. The content is not intended to be a personal recommendation to buy or sell any financial instrument or product, or to adopt any investment strategy as it is not provided based on an assessment of your investing knowledge and experience, your financial situation or your investment objectives. The value of your investments, and the income derived from them, may go down as well as up. You may not get back all the money that you invest. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment advisor.

/3 Your free quarterly content is about to expire. Uncover the biggest trends and opportunities. Subscribe now for 50%. Cancel anytime.

Finimize
© Finimize Ltd. 2023. 10328011. 280 Bishopsgate, London, EC2M 4AG