Beyond Meat's first-quarter earnings better than expected

STAPLETON  Reuters

Impossible Foods and Nestle - which will launch a Sweet Earth-brand plant-based burger this fall - are others.

Beyond Meat shares soared by almost 30% Friday after the company released its first quarterly earnings report as a public company the evening prior.

Looking forward, Beyond Meat now expects full-year revenues to be in excess of $210m - ahead of the $205m priced in by analysts.

Beyond Meat Inc, a maker of plant-based burgers and sausages, said it expects to more than double its revenue and report breakeven EBITDA this year, sending the its shares up over 21 percent.

"Find it in the meat aisle", the company's website says of its sausages and burger patties, which are made of yellow pea protein, coconut and canola oil.

Beyond Meat is marketing its meat substitutes to vegetarians and vegans, and to consumers desirous of restricting their meat intake for health or environmental reasons.

The fake meat maker posted a loss of $6.6 million in the quarter, compared to a loss of $5.7 million in that period a year ago.

Investors buying the stock are taking the view that "meatless products will indeed grow sharply in attractiveness to consumers in the future", Racanelli said, and that Beyond Meat "has a lasting first-mover advantage". California's Gelson's Market told Reuters that when placed in the freezer section, Beyond Meat didn't sell well, but since being moved to the vegan section, sales of the product are up 60%.

"This is hugely important because it means that the brand is driving same-store foot traffic rather than just cannibalizing existing sales", they wrote.

Beyond Meat plans to expand into Europe and Asia, he said.

That growth has competition, however, including Impossible Foods, which has inked deals with Burger King for its Impossible Burger, and other fast food giants. Beyond Meat is now valued at almost $6 billion.

Nestle, the world's biggest packaged foods group, seeks to sell a pea-based veggie patty called Awesome Burger under its US plant-based Sweet Earth brand in the fall.

"As we are entering into additional test and distribution channels and take on new customers, those will be additive to our numbers", Brown said.

"We're at a point where plant-based meats have become a segment of their own, and by the end of the year we'll have a section exclusively dedicated to these products inside the meat department", said Beretta. Tyson Foods, which sold its minority stake in Beyond Meat shortly before its recent IPO, announced that it is launching its own meatless products this summer. In 2018, Beyond Meat controlled only 2.1 percent of the US meat alternative market.

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