BYND - Can Beyond Meat Become the Tesla of Meat-Substitute Makers?
Beyond Meat (NASDAQ: BYND), maker of plant-based meats that feature pea protein as their main ingredient, posted outstanding sales and revenue figures with its Q4 and full-year reports on Feb. 27 – but got a stock market black eye nevertheless. Investors signaled unhappiness that sales weren't even bigger, and perhaps that there's still no major McDonald's (NYSE: MCD) deal. But while Beyond Meat may be down a little, it isn't out. It might still have the potential to turn its first-mover advantage into the same success another famously volatile company, Tesla Motors (NASDAQ: TSLA), enjoys.
Manufacturing several different types of what it calls "plant-based meats," Beyond Meat has achieved some notable milestones since its May 1, 2019 IPO. Already sold at 25,000 locations before its stock market entry, the company's products are now available at approximately 58,000 outlets, including both restaurants and grocery stores. Key takeaways from its recent results include a 212% year-over-year jump in quarterly revenues. Both quarterly sales and full-year revenue (of $297.9 million) beat analyst estimates by a significant margin. Its 2020 sales guidance of $490 million to $510 million also exceeds analyst projections.
Sales of its Beyond Sausage at Dunkin' Brands (NASDAQ: DNKN) restaurants were enough significantly boost quarterly sales for the chain, according to Dunkin's CEO during the most recent earnings call. McDonald's began testing its "PLT" (plant, lettuce, and tomato) using Beyond Meat patties, a move which Oppenheimer analyst Rupesh Parikh claimed could add $200 million to Beyond's sales. Beyond is entering the European market in February 2020 with offerings at 500 Casino Group-owned restaurants across France. Overall demand growth is high enough for Beyond to ink a multi-year deal with pea protein supplier Roquette Frères in January, a move that "significantly increases" purchases over the next three years.