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Beyond meat (BYND) reported a surprise third-quarter loss amid weak income Monday night, as the coronavirus pandemic wreaks havoc on restaurant and foodservice customers. After the close, Beyond Meat’s stock plunged.
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During the regular session, BYND stock fell into confusion after Mcdonalds (MCD) said he was in the process of creating a new herbal McPlant patty that did not cite any third party involvement. Beyond Meat told CNBC it has partnered with McDonald’s on the Meatless McPlant.
Income Beyond Meat Report
Estimate: Analysts polled by Zacks are expecting Beyond Meat to earn 3 cents per share, down 50% from last year’s quarter. They see revenue of $ 135.56 million, a 47% increase from a year ago.
Results: Beyond Meat reported a net loss of $ 19.3 million, or 31 cents per share. The adjusted net loss was $ 17.5 million, or 28 cents per share, reflecting the exclusion of expenses related to COVID-19. Net income increased 2.7% year over year to $ 94.4 million.
“Our financial results reflect a quarter where, for the first time since the start of the pandemic, we experienced the full impact and unpredictability of COVID-19 on our bottom lines and, therefore, throughout our P&L” said Ethan Brown, president and CEO of Beyond Meat. “Unlike the second quarter where record retail purchases and consumer loading of freezers offset the deterioration in our food service business with COVID-19 staying at home and related measures put in place, the long tail of storage retail by consumers, coupled with continued challenges across the majority of our restaurant customers, led to lower than expected third quarter results. “
Restaurant revenues fell 11% in the United States and 65% overseas. Revenues at grocery stores and other retailers jumped 40.5% in the United States and 27% abroad.
Beyond Meat also didn’t offer any advice.
The plant-based meat company, which made the meatless patties for the McDonald’s Canada test, has several irons on fire. It launched its Beyond Breakfast Sausage links in grocery stores nationwide. He expanded his grocery distribution of Beyond Breakfast sausage patties to Kroger (KG), Targetthe Super Target stores of (TGT) and Walmart (WMT). Beyond Meat has also struck a deal to produce its plant-based meat for the Chinese market near Shanghai. And in an effort to make plant-based meat accessible to more consumers, it launched an e-commerce site aimed directly at consumers.
The vegan meat company’s product line is now sold in more than 85 countries at 112,000 retail and food service outlets, including 26,000 in the United States.
Beyond the analysis of meat stocks
Stocks plunged 29% after-hours on the stock market today, signaling a six-month low. BYND stock rose to 170.80 shortly after the open, but then fell to 141.25. Beyond Meat closed 4.2% lower at 150.30, below its 50-day line.
After its IPO in May 2019, the Beyond Meat share climbed 859% to an all-time high a few months later. But stocks fell from those highs, dropping as much as 80%. Notably, the Beyond Meat stock struggled to stay above the 50-day moving average, a key support level, according to MarketSmith’s chart analysis.
Beyond Meat is the No. 1 in the food-meat industry group. Hormel Foods (HRL) is currently No. 2. But the group currently ranks at No. 140 low out of 197 industry groups followed by IBD. Investors should focus on stocks in the top quartile of IBD groups.
Beyond Meat has an RS rating of 89.
Beyond the meat stock: fierce rivals
His collaboration with McDonald’s could give Beyond Meat a boost in an extremely competitive landscape.
Beyond Meat’s biggest competitor, Impossible Foods, has expanded its distribution. Meanwhile, Planterra Foods launched the herbal brand Ozo. And Prime Roots, which makes plant-based meat and seafood substitutes, is now available at retailers including Amazon (AMZN) and its Whole Foods Market chain.
Beyond Meat’s inventory analyst Arun Sundaram of CFRA says competition comes at risk.
“One of Beyond Meat’s primary concerns is growing competition from larger peers in the packaged food industry and Impossible Foods, which recently debuted in the retail channel after primarily competing in the restaurant business, ”he said in a recent report to clients. “Packaged food companies with competing products include Kellogg, Nestle, Tyson Foods, Conagra Brands and Hormel Foods. Recently, retailers have introduced private label plant-based meat products. The competition is fierce and we believe that ‘she’s just getting started. “
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