Beyond Meat Inc.’s shares initially plunged 15% in Thursday’s extended trading after the company lost quarterly estimates. But exclusive deals with McDonald’s Corp. and Yum Brands Inc., announced a few minutes after the results were released, changed that quickly, causing Beyond’s shares to rise 11%, a 26% fluctuation.
In the middle of a conference call on Thursday night, the shares had dropped 3%, probably ending the roller coaster.
The plant-based protein company reported an adjusted net loss of $ 21.4 million, or 34 cents per share, compared to a net loss of $ 452,000, or one cent per share, in the previous year’s quarter. In its earnings release, the company said that “the increase in demand from retail customers that characterized the early stages of the pandemic, as consumers abruptly shifted to more domestic consumption, has slowed.”
Revenue increased 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 per share on revenue of $ 103.6 million.
“Today was a very exciting day for us … with two excellent partners [in McDonald’s and Yum!]”, Said Beyond Meat’s chief executive, Ethan Brown, during a conference call with analysts. To paraphrase 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’s how we feel. “
The financial results initially sent shares of Beyond BYND,
15% drop in negotiations extended on Thursday.
Those shares recovered dramatically, however, when Beyond later announced a three-year deal with McDonald’s MCD,
to be the fast food chain’s preferred supplier for the hamburger at McPlant, a new vegetable hamburger sandwich being tested in select McDonald’s markets globally. In addition, Beyond Meat and McDonald’s will explore the co-development of other plant-based menu items, including herbal options for chicken, pork and egg as part of McDonald’s McPlant’s broader platform.
Another agreement with Yum YUM,
the co-creation of plant-based protein menu items at KFC, Pizza Hut and Taco Bell in the coming years has further boosted Beyond’s actions. At the end of Thursday, however, Beyond’s shares fell again.
Beyond is feeling the competitive squeeze of Impossible Foods Inc., which this month announced its third double-digit price cut in less than a year – 20% off hamburgers (to $ 5.49) and 12-ounce packaging ( for $ 6.99) in thousands of stores that include Kroger Co. KR,
Walmart Inc. WMT,
Publix Super Markets Inc., Safeway Inc., Sprouts Farmers Market Inc. SFM,
Target Corp. TGT,
and Trader Joe’s.
The aggressive price of Impossible could complicate Beyond Meat’s efforts to make its first annual profit since its IPO in 2019.
Beyond Meat’s shares rose temporarily in late January, after news that it had struck a deal to make snacks and drinks with PepsiCo. Inc. PEP,
but since then it has cooled. Beyond shares have risen 35% in the past 12 months. The broader S&P 500 SPX index,
improved 29% last year.