Beyond Meat Needs To Go Above And Beyond To Combat The Headwinds

For most of 2020, the pandemic-shaped year, COVID-19 wreaked havoc on the food and restaurant industry. Analysts hoped rising consumer demand for alternative foods would offset the strangled foodservice channel but industry players had a difficult time to adapt to a new era and Beyond Meat (NASDAQ: BYND) was no exception.

Despite the fact it missed badly with its latest earnings report for the fourth consecutive time , shares of Beyond Meat continue to go higher. Moreover, they went up 7.9% up on Wednesday but after traditional meat processing company JBS (OTC: JBSAY) came under a cyber attack that disrupted its operations. But considering that the shutdowns of processing plants are expected to last only last a day or two, it's highly unlikely this can be a source of a meaningful boost for Beyond Meat, so let's take a closer look at its current standpoint.

Q1 Earnings Report

When the company reported earnings on May 6^th, it missed on both the top and bottom line. Revenues has lagged considerably as foodservice sales plunged 26% and 44% in the U.S. and abroad, respectively. Sales amounted to $108.2 million which is significantly below the expected $113.18 million.

Beyond delivered an adjusted loss per share of 42 cents which was also quite below the 19 cents loss per share that analyst had expected. Although the stock fell sharply following the report, it has rallied back since.

The company has been transparent about the challenges it faced due to COVID-19, with its prior reports openly revealing that streamlined menus, as well as reduced foot traffic and operating capacity all played their part. In an effort to fight back, the company has shifted its focus to grocery and convenience stores with U.S. retail sales rising over 27% to $63.83 million the past quarter.

Combatting The Headwinds With Innovation

Beyond Meat's secret weapon lies in routinely adding innovative and premium product offerings such as Beyond Meatballs to Beyond Breakfast Sausage Links, along with forming partnerships with big-name chains and retailers including Costco Wholesale Corporation (NASDAQ: COST), Yum! Brand's Inc (NYSE: YUM)-owned Taco Bell, Subway, TGI Friday's, Dunkin' (NASDAQ: DNKN), and Pizza Hut. In May, the company launched a new version of its plant-based Beyond Burger at grocery stores nationwide, marketing it as the brand's juiciest plant-based patty yet.

Competition Is Heating Up

In recent months, its plant-based competitor Impossible Foods has slashed prices in an effort to gain market share ahead of a potential IPO. Additionally, Tyson Foods (NYSE: TSN) will be launching its own plant-based line of hamburgers and sausages, just in time for the summer grilling season. The high protein plant-based meat market is expected to register a CAGR of 14.1% from 2021to 2026, with it already being a highly competitive environment so Beyond Meat will need to go beyond its existing achievements if it wants to stay in the meat-free game.

This article is not a press release and is contributed by a verified independent journalist for IAMNewswire. It should not be construed as investment advice at any time please read the full disclosure. IAM Newswire does not hold any position in the mentioned companies. Press Releases – If you are looking for full Press release distribution contact: press@iamnewswire.com Contributors – IAM Newswire accepts pitches. If you're interested in becoming an IAM journalist contact: contributors@iamnewswire.com

The post Beyond Meat Needs To Go Above and Beyond To Combat the Headwinds appeared first on IAM Newswire.

Image by Theo Crazzolara from Pixabay