Reports Q2 results on Thursday, August 5 after market close
Expected Revenue: $143 Billion
EPS Forecast: Loss of $0.23
Shares of Beyond Meat (NASDAQ:) have remained under pressure during the pandemic as the vegetable burger maker struggled to increase its sales as restaurants, stadiums and campuses closed. of these avenues restarting, investors are not convinced that sales will return any time soon. BYND shares are down 19% in the past month, illustrating investors' nervousness about owning this burgeoning stock. to analyze is how quickly sales of the restaurant and food service sector are picking up again.
Unlike other packaged food companies, Beyond Meat relies heavily on these segments for growth. The rise of the Delta variant of COVID-19, which has forced many countries to reintroduce lockdowns and prompted US health authorities to reinstate mask mandates in indoor environments, is making the revenue outlook for BYND more uncertain. With the pandemic setback, we continue to believe that Beyond Meat is a great food supply to own as consumers become more health-conscious. The recent weakness is a bump in the company's long-term growth potential. BYND's latest partnerships and expansion plans confirm this bullish case. As it goes mainstream, the global market is expected to reach $450 billion by 2040, according to global consultancy Kearney. And when it comes to competition, Beyond Meat is way ahead of its closest rival, Impossible Food. It had more US retailers – 28,000 compared to Impossible's 20,000. The products were offered in more restaurants (42,000 in the US vs. 30,000+) and more international markets (over 80 vs. 5), according to an April analysis by Bloomberg.
Beyond Meat announced several expansion plans this year that should ease investor fears, including a new hamburger, expanding European retail and opening its manufacturing facility in China – the first outside the US – to manufacture and distribute its plant-based products, including Beyond Pork, created specifically for the Chinese market.
In January, Beyond Meat finalized the agreements with McDonald' (NYSE:) and Yum! Brands (NYSE:)—two of the largest fast food companies in the world. The three-year deal with McDonald's makes Beyond Meat the chain's "preferred supplier" for the McPlant patty. Beyond Meat and McDonald's will also explore how to develop other plant-based menu items, including alternative chicken, pork and eggs. the global economy overcomes the pandemic and people resume their routine activities. The company's leading position in the plant-based food market makes it an ideal candidate to buy on weakness.
