Beyond Meat trims its losses as sales revenue triples
BEYOND Meat narrowed its losses in the fourth quarter as sales of its plant-based meat soared.
The El Segundo, Californiabased company, which went public last year, said it lost $452,000 in the December quarter, down from a loss of $7.5 million a year earlier.
But its loss of 1 cent per share fell short of Wall Street’s forecast of a 1-cent profit, according to analysts polled by FactSet. Investors were hoping Beyond Meat would pull off another quarterly profit after hitting that milestone in the September quarter.
Beyond Meat’s shares fell 7 per cent to $99 in after-hours trading. They nearly reached $240 last July after the company raised its 2019 revenue outlook. Fourth-quarter revenue more than tripled to $98.5 million, beating analysts’ estimate of $81 million. Beyond Meat CEO Ethan Brown said the company’s plant-based burgers and sausages were now available at Costco in the US and Canada, among other retail outlets.
“Right now is a time for growth for Beyond Meat,” Mr Brown said on a conference call with investors. “A growing number of consumers want what we are doing to work.”
Beyond Meat said it expected revenue to climb to between $490 million and $510 million this year, an increase of 64-71 per cent from 2019. It also said it expects to accelerate spending on marketing, research and development and expansion internationally.
The company’s products have had some mixed news recently from retailers. Starbucks recently announced it would offer a Beyond Meat sandwich at almost all of its 1500 Canadian stores starting in March. The patty is made from peas and brown rice and features a blend of fennel, rosemary and other spices.
KFC is also testing Beyond Meat’s plant-based fried chicken next month.
But Tim Hortons pulled Beyond Meat sausages from its 4000 Canadian stores. It said the sausage, introduced last May, was a slow seller. AP