In this file:
· Beyond Meat Gets Massive Revenue Boost From Restaurants in Q1
· Here's Why Beyond Meat Rose as Much as 36.5% Today
· Beyond Meat says one overseas market has ‘desperate’ need for plant-based protein
· 3 Questions Beyond Meat Investors Should Be Asking Right Now
· Fake meat burgers are 'processed crap' says leading premium beef marketer
Beyond Meat Gets Massive Revenue Boost From Restaurants in Q1
Management expects full-year 2019 revenue of at least $210 million, representing year-over-year growth of over 140%.
Maxx Chatsko, The Motley Fool
Jun 7, 2019
If there were any investors who doubted the potential of the animal-free protein revolution, then they should look at Beyond Meat's (NASDAQ:BYND) first-quarter 2019 earnings report.
Those results show that the plant-based protein developer enjoyed year-over-year revenue growth of nearly 215%, spurred by a 491% surge in sales from restaurant and food-service distribution channels. Retail sales grew by a more pedestrian 111%. Meanwhile, management expects full-year 2019 revenue of at least $210 million, which would mark a 140% increase from last year.
Shares surged to new all-time highs in after-hours trading following the report. While the new $6.5 billion market cap prices in a lot of future growth, the business is certainly doing its part to earn the premium. Here's what investors need to know about the Q1 operating results.
By the numbers
Beyond Meat is in the most promising part of its growth trajectory, but the business is well positioned to continue growing for the foreseeable future. New product launches, a new manufacturing facility in Europe (close to the world's most prolific producer of peas, the source of the company's animal-free protein, and just miles from the world's cheapest sugar beets, the source of the beetroot juice that makes Beyond Burgers "bleed"), and expanded relationships with restaurants promise to keep the animal-free protein platform humming along.
One look at Q1 results suggests the latter might be most important. Apparently, Beyond Meat wasn't kidding when it told investors it had the fastest-growing product launch in the history of both TGI Fridays and A&W Canada.
The surge in sales from restaurant distribution channels led to an eye-popping 424% increase in gross profit. That allowed Beyond Meat to ramp up investments in the business and cover increased overhead expenses while keeping operating losses in check. It also allowed the business to reduce the impact of discounts offered through direct sales channels, which settled at $3.1 million in Q1. While those discounts increased 98.5% from the year-ago period, the investment delivered a 111% increase in retail sales. Moreover, discounts shrank to just 7.5% of revenue, compared with 12.3% in Q1 2018.
Don't dismiss a sky-high valuation ...
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Here's Why Beyond Meat Rose as Much as 36.5% Today
via FOX Business - June 07, 2019
Shares of Beyond Meat (NASDAQ: BYND) rose over 36% today, rising to a market cap of more than $7 billion, after the company reported first-quarter 2019 operating results. Investors were eagerly awaiting the latest update on the company's growth trajectory -- and the animal-free protein pioneer certainly delivered.
Beyond Meat grew total revenue 215% thanks to a massive surge from restaurant distribution channels, which helped to drive gross profit 424% higher. The business achieved a gross margin of 25% in Q1. While investors might think that'll be difficult to keep up, management's expectations for the year ahead prove otherwise.
As of 10:19 a.m. EDT, the stock had settled to a 27.7% gain.
Management issued full-year 2019 guidance calling for revenue of at least $210 million, representing year-over-year growth of over 140%, and neutral adjusted EBITDA Opens a New Window. . That's pretty impressive considering Beyond Meat pulled in revenue of only $16.2 million in 2016 Opens a New Window. .
While investors are basking in the glory of epic growth, it's worth mentioning that the animal-free protein developer is now worth more than $7 billion. If the business achieves revenue of $210 million this year, then it will be valued at 33 times sales. That's pretty pricey for a food company.
Consider two high-profile, albeit imperfect, comparisons. Tyson Foods trades at 0.8 times sales, while Whole Foods Market was acquired by Amazon at a multiple of 0.85 times sales. As more animal-free protein products arrive on the market Opens a New Window. , restaurants will have more leverage when negotiating partnerships, which will likely erode Beyond Meat's margins.
Now what ...
Beyond Meat says one overseas market has ‘desperate’ need for plant-based protein
• Beyond Meat shares surged after its better-than-expected first-quarter results on Friday, as growth around the world for plant-based protein alternatives to meat exceeded forecasts.
• The global region where Beyond Meat says the need is “desperate” for its products is Asia.
• Even though beef has never been a staple in many Asian countries, Asia has the fastest-growth rate of beef consumption in the world. It also faces some of the world’s biggest environmental issues.
Eric Rosenbaum, CNBC
Jun 7 2019
Beyond Meat is booming in the U.S., which has the highest level of animal-based meat consumption per person on a global basis and where meat is the largest category in the food industry, a $270 billion business. The U.S. opportunity is just getting started: Nielsen data shows Beyond Meat has just 2% household penetration in the United States.
But the company has said that the global opportunity is just as compelling — meat is estimated to be a $1.4 trillion market — and that is where some of Beyond Meat’s fastest growth may yet come.
Shares of Beyond Meat, already the best initial public offering of 2019, soared after its first-ever earnings report as a public company, and the opportunity in Asia is one that CFO Mark Nelson highlighted.
Responding to a question from an analyst on the quarterly earnings conference call about the international opportunity and how much of the growth it will drive going forward, Nelson said it is an important “but still pretty small percentage of our overall revenue.” He noted that Europe and Asia are “very significant” markets for its products and pointed to the fact that Europe already has a “very well-developed market” for plant-based proteins.
But it was the word he used to describe the Asian opportunity that was about as dramatic as CFO talk ever gets. “Asia has a desperate need for this. So I’m going to be very aggressive in going into those markets, and our team will be as well. ... Asia is absolutely a strong part of our strategy.”
Beyond Meat has been planning for international expansion since well before its public debut. It noted in 2018 that 10% of its consumer inquiries in the previous year were from international markets, a factor that contributed to its rollout across 40 countries. Beyond Meat is currently distributed internationally to through local partners in Australia, Chile, the European Union, Hong Kong, Ireland, Israel, the Middle East, New Zealand, South Korea, Taiwan and the United Kingdom, markets where the company said it “received strong inbound interest for our plant-based products.”
In March, Beyond Meat introduced its plant-based protein burger in Singapore. That followed the 2017 introduction of the Beyond Burger in Hong Kong. Among international markets, Australia is among Beyond Meat’s most penetrated to date. The company had said in its S-1 filing ahead of the IPO, “for several years we have maintained a presence and generated brand awareness in Asia through our local distributor, and expect further expansion in the region over time.”
Beyond Meat has previously cited research firm forecasts that the global market for plant-based meat will be worth $6.5 billion by 2023, with the fastest-growing market being the Asia-Pacific region. Allied Market Research data shows...
Many factors at play in Asia …
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3 Questions Beyond Meat Investors Should Be Asking Right Now
The meat-alternative innovator's shares have risen 400% in just over a month. What could go wrong?
Jeremy Bowman, The Motley Fool
Jun 8, 2019
Beyond Meat (NASDAQ:BYND) has turned into the hottest thing since sliced bread.
Shares of the plant-based meat substitute maker are surging following strong results in its first earnings report as a publicly traded company. In the little more than a month since it debuted, the stock has climbed an incredible 400% from its $25 IPO price, giving the company a market cap of around $7 billion.
It's easy to see why investors are so excited about this alternative protein company. Its revenue more than tripled in the latest quarter, climbing 215% to $40.2 million, and the company's guidance shows it expects that strong growth to continue. Management forecasts top-line growth of at least 140% to more than $210 million in revenue this year.
Still, investors might want to exercise caution with Beyond Meat as the company now has a market value comparable to well-established food industry names like poultry processor Pilgrim's Pride, which is valued at $6.7 billion, but which had nearly $11 billion in revenue last year. Before sinking your teeth into some Beyond Meat shares, investors should ask themselves these three questions.
1. Does it have a competitive advantage? ...
2. Is this different than other recent food trends? ...
3. Will everyone be eating plant-based meat in 10 years? ...
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Fake meat burgers are 'processed crap' says leading premium beef marketer
Vernon Graham, Mandurah Mail (Australia)
June 10, 2019
James Madden, who heads one of Australia's leading marketers of premium meat brands, says plant-based hamburgers are junk food.
He describes the fake meat burgers from the likes of high-profile US manufacturers, Beyond Meat and Impossible Foods, as "junk food" and "processed crap".
Mr Madden, managing director of Melbourne-based Flinders + Co, launched a blistering attack on plant-based "meat" during a panel discussion at this week's launch of the Australian Beef Sustainability Framework in Sydney.
Last year Flinders + Co became the first meat supplier in the world to fully offset carbon emissions.
The company, originally called Flinders Island Meat, was established in 2010 by Mr Madden's father, David, as a boutique lamb brand after he bought the Flinders Island abattoir.
The company has since evolved into a wholesale meat company distributing some of Australia's best known meat brands including Cape Grim beef, Robbins Island Wagyu, Rosedale Ruby beef, Flinders Island Saltgrass Lamb and Nichols Ethical Free Range Chicken.
Mr Madden admitted he seriously thought about transitioning the company out of meat two or three years ago because of an avalanche of anti-meat messages and wall-to-wall publicity about the alleged health benefits of vegan diets.
He watched a "lot" of documentaries and listened to "noise" about Beyond Meat burgers, Impossible Foods, veganism and the impact of livestock on the environment.
"I was experiencing it (the red meat debate) as a consumer rather than an industry participant at that point. So I probably didn't know enough," he said.
"But I seriously thought about taking our business out of the meat industry.
"Thankfully I didn't. What I ended up doing was digging beneath the surface. And what I found was very reassuring to myself," he said.
Mr Madden was answering a question to the panel from Jenny O'Sullivan, a livestock producer from Victoria's South Gippsland and member of the Beef Sustainability Framework's steering committee.
She asked the panel - which included leading processor, Peter Greenham, Queensland cattle producer, Howard Smith, and Sydney chef, Mike McEnearney - what they would say to farmers concerned and scared about the attacks on their industry by vegans and animal activists...