Beyond Meat Inc. reported sales that outpaced Wall Street’s expectations, a sign that demand remains robust in spite of the coronavirus outbreak that’s closed restaurants across the U.S.
Revenue of US$97 million in the first quarter surpassed the average analyst estimate of US$88.2 million. However, the 141 per cent growth rate from a year earlier is the slowest pace in two years as the economic lockdown robbed the faux meat maker of restaurant sales.
Key Insights
- Beyond Meat’s business has dramatically shifted into retail and away from restaurants amid the economic lockdown sparked by COVID-19. Before the pandemic, each segment represented about half of sales, but that has now shifted heavily to grocery channels.
- The rise in supermarket sales hasn’t been enough to outweigh all of the losses from shuttered restaurants, Chief Executive Officer Ethan Brown said in an interview prior to the release. In March, Beyond Meat saw foodservice sales dip 23 per cent while retail sales rose 12 per cent.
- The company has not seen any disruptions in supply chains, Brown said. There also haven’t been any reported positive cases of COVID-19 at its plants, he added.
- This summer, Beyond Meat plans to sell value packs with deeper and longer-lasting discounts, Brown said.
Market Reaction
Beyond Meat shares rose as much as 8.6 per cent in late trading on Tuesday.
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