Beyond Meat has been making a lot of noise in the food industry, and for good reason. Plant-based meat alternatives are nothing new, of course, but these products have never been touted to taste like animal protein the way the latest entries to the field have. Of course, the market for these products has never been quite so hungry either, pun intended.
And Beyond Meat is back in the news again, this week, with the announcement of its first quarterly profit, which topped analyst expectations for Q3 earnings and revenue. But while that is certainly good news, share prices for the brand sank as much as 15 percent, in extended trading, before recovering about 50 percent. At the same time it might be worth noting that Beyond Meat share price has skyrocketed more than 320 percent since its initial public offering.
Specifically, the company reported 6 cents earnings per share on revenue of $92 million. Wall Street had expected Beyond Meat to post 3 cents earnings per share on revenue of $82.2 million. Looking at the report, Beyond Meat also said fiscal third-quarter net income came in around $4.1 million (which is equivalent to 6 cents per share). That is a dramatic climb from the $9.3 million loss (equivalent to roughly $1.45 per share) from the same period one year ago.
In other guidance, net sales for Beyond Meat grew 250 percent, hence the $92 million that beat the $82.2 million expected. These sales divide into those to food service and those sold in grocery stores. A good portion of this, then, was among restaurants and other food service establishments, making up 45 percent of the company’s revenue for the third quarter. For that aspect of sales, alone, Beyond Meat reported $41.5 million in net sales.