Bulletin
Investor Alert

New York Markets Open in:

Earnings Results Archives | Email alerts

Feb. 26, 2021, 8:58 a.m. EST

Beyond Meat lands deals with McDonald’s, KFC, Taco Bell and Pizza Hut; stock surges despite lukewarm earnings

new
Watchlist Relevance
LEARN MORE

Want to see how this story relates to your watchlist?

Just add items to create a watchlist now:

  • X
    Beyond Meat Inc. (BYND)
  • X
    McDonald's Corp. (MCD)
  • X
    Yum! Brands Inc. (YUM)

or Cancel Already have a watchlist? Log In

By Jon Swartz

Beyond Meat Inc.’s stock initially tumbled 15% in extended trading Thursday after the company came up short on quarterly estimates. But exclusive deals with McDonald’s Corp. and Yum Brands Inc., announced just minutes after the earnings release, changed that quickly, sending Beyond shares up 11%, a swing of 26%.

By the middle of a conference call late Thursday, the stock had dipped 3%, presumably ending the roller-coaster ride.

The plant-based-protein company reported an adjusted net loss of $21.4 million, or 34 cents a share, compared with a net loss of $452,000, or a penny a share, in the year-ago quarter. In its earnings release, the company said “the surge in demand from retail customers that characterized the early stages of the pandemic as consumers abruptly shifted towards more at-home consumption has moderated.”

Revenue inched up 3.5% to $101.9 million from $98.5 million a year ago. Analysts surveyed by FactSet had expected a net loss of 14 cents a share on revenue of $103.6 million.

See: McDonald’s will factor diversity goals into executive bonus payouts starting in 2021

“Today was a very exciting day for us… with two outstanding partners [in McDonald’s and Yum!],” Beyond Meat Chief Executive Ethan Brown said during a conference call with analysts. Paraphrasing McDonald’s legendary Ray Kroc, Brown said, “There is something about being in the right place at the right time, and doing something about it. That is how we feel.”

The financial results initially sent shares of Beyond /zigman2/quotes/211617595/composite BYND +1.46% down 15% in extended trading Thursday.

Those shares dramatically rebounded, however, when Beyond later announced a three-year agreement with McDonald’s /zigman2/quotes/203508018/composite MCD +0.42% to be the fast-food chain’s preferred supplier for the patty in the McPlant, a new plant-based burger sandwich being tested in select McDonald’s markets globally. Additionally, Beyond Meat and McDonald’s will explore co-developing other plant-based menu items, including plant-based options for chicken, pork and egg as part of McDonald’s broader McPlant platform.

Another deal with Yum /zigman2/quotes/209029767/composite YUM -0.47% to co-create plant-based-protein menu items at KFC, Pizza Hut and Taco Bell over the next several years further boosted Beyond shares. By late Thursday, however, Beyond shares were down again.

Also: Bill Gates roasted for saying rich countries should eat ‘100% synthetic beef’

Beyond is feeling the squeeze competitively from Impossible Foods Inc., which this month announced its third double-digit price-cut in less than a year — 20% off patties (to $5.49) and 12-ounce packages (to $6.99) in thousands of stores that include Kroger Co. /zigman2/quotes/206215053/composite KR -0.13% , Walmart Inc. /zigman2/quotes/207374728/composite WMT +0.60% , Publix Super Markets Inc., Safeway Inc., Sprouts Farmers Market Inc. /zigman2/quotes/209197151/composite SFM +1.21% , Target Corp. /zigman2/quotes/207799045/composite TGT +0.02% and Trader Joe’s.

Impossible’s aggressive pricing could complicate Beyond Meat’s efforts to turn turn its first annual profit since its IPO in 2019.

Beyond Meat’s shares temporarily surged in late January, following news  that it had reached a deal to make snacks and beverages with PepsiCo. Inc.  /zigman2/quotes/208744353/composite PEP +0.14% , but have since cooled. Beyond shares are up 27.8% over the past 12 months. The broader S&P 500 index /zigman2/quotes/210599714/realtime SPX +1.11% has improved 22.9% in the past year.

/zigman2/quotes/211617595/composite
US : U.S.: Nasdaq
$ 137.15
+1.97 +1.46%
Volume: 2.31M
April 15, 2021 4:00p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$8.52 billion
Rev. per Employee
$581,121
loading...
/zigman2/quotes/203508018/composite
US : U.S.: NYSE
$ 231.28
+0.97 +0.42%
Volume: 2.06M
April 15, 2021 4:00p
P/E Ratio
36.68
Dividend Yield
2.23%
Market Cap
$171.71 billion
Rev. per Employee
$96,039
loading...
/zigman2/quotes/209029767/composite
US : U.S.: NYSE
$ 117.61
-0.55 -0.47%
Volume: 1.24M
April 15, 2021 4:02p
P/E Ratio
39.94
Dividend Yield
1.70%
Market Cap
$35.28 billion
Rev. per Employee
$148,737
loading...
/zigman2/quotes/206215053/composite
US : U.S.: NYSE
$ 37.19
-0.05 -0.13%
Volume: 6.43M
April 15, 2021 4:00p
P/E Ratio
11.31
Dividend Yield
1.94%
Market Cap
$28.35 billion
Rev. per Employee
$284,942
loading...
/zigman2/quotes/207374728/composite
US : U.S.: NYSE
$ 140.16
+0.84 +0.60%
Volume: 7.24M
April 15, 2021 4:00p
P/E Ratio
29.59
Dividend Yield
1.57%
Market Cap
$392.47 billion
Rev. per Employee
$243,109
loading...
/zigman2/quotes/209197151/composite
US : U.S.: Nasdaq
$ 26.74
+0.32 +1.21%
Volume: 1.70M
April 15, 2021 4:00p
P/E Ratio
10.99
Dividend Yield
N/A
Market Cap
$3.12 billion
Rev. per Employee
$196,023
loading...
/zigman2/quotes/207799045/composite
US : U.S.: NYSE
$ 205.76
+0.05 +0.02%
Volume: 3.37M
April 15, 2021 4:02p
P/E Ratio
23.80
Dividend Yield
1.32%
Market Cap
$102.57 billion
Rev. per Employee
$228,756
loading...
/zigman2/quotes/208744353/composite
US : U.S.: Nasdaq
$ 142.31
+0.20 +0.14%
Volume: 4.78M
April 15, 2021 4:00p
P/E Ratio
26.38
Dividend Yield
2.87%
Market Cap
$196.12 billion
Rev. per Employee
$241,828
loading...
/zigman2/quotes/210599714/realtime
US : S&P US
4,170.42
+45.76 +1.11%
Volume: 2.13B
April 15, 2021 5:07p
loading...

Get news alerts on Beyond Meat Inc. — or create your own.
This Story has 0 Comments
Be the first to comment
More News In
Industries

Story Conversation

Commenting FAQs »

Partner Center

Link to MarketWatch's Slice.