Beyond Meat shares took a dive yesterday…
Beyond Meat shares took a sharp drop on Monday following a mixed Q2 earnings report and the news that the company is offering an additional 3.25 million shares.
Since the company’s IPO in May, Beyond Meat stock is up approximately 780%. The stock rose after the earnings report but dropped 13% after news of the new stock offerings.
Of the 3.25 million shares being offered, only 250,000 will be sold by the company itself. The proceeds from these shares will be used to expand product and supply, marketing, and other applications.
What to Know About the Q2 Results
Beyond Meat released its Q2 financial results on Monday. The highlights of this report include:
- $67.3 million in revenue (up 287%)
- $22.7 million in gross profit
- Net losses of $0.24 per common share
While the plant-based meat producer’s Q2 revenue beat Wall Street’s expectations, its net losses were higher than the expected $0.09 per common share.
In a statement regarding this report, Beyond Meat President and CEO Ethan Brown said, “We are very pleased with our second-quarter results which reflect continued strength across our business as evidenced by new foodservice partnerships, expanded distribution in domestic retail channels, and accelerating expansion in our international markets.”
As demand for plant-based meat products continues to increase, Beyond Meat expects even higher revenue in the third fiscal quarter.
Beyond Meat Continues to Find New Partners
Beyond Meat’s increased revenue and demand is largely due to the company’s partnerships with restaurants throughout the U.S. and Canada.
Some of the company’s most recent partners include Tim Horton’s, Blue Apron, and Dunkin’. Beyond Meat reported that $33.1 million of its net sales came from its foodservice partnerships — making up nearly half of the company’s revenue.
“Looking ahead, we will continue to prioritize efforts to increase our brand awareness, expand our distribution channels, launch new innovative products, and invest in our infrastructure and internal capabilities in order to deliver against the robust demand we are seeing across our business,” Brown stated.
Beyond Meat products are now available in 51 countries. As the company continues to expand the availability of its products, Beyond Meat expects demand to rise and revenues to increase.
