The stock of the plant-based meat producer Beyond Meat (NASDAQ: BYND) has remained unchanged since the beginning of the year compared to the S&P 500 (ASX: SPY) index.
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February 26, 2021
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This story originally appeared on MarketBeat
Vegetable meat manufacturer Beyond Meat (NASDAQ: BYND) The share was unchanged over the course of the year compared to the S&P 500 (ASX: SPY) index. The performance since the beginning of the year has increased by + 17.7% for 2021. The company that introduced the financial markets to the plant-based food revolution has gone mainstream as its natural products achieve more penetration and brand recognition. As the pandemic has helped the company expand its target audience due to home dining, the continued penetration of major food and restaurant brands and distribution points should contribute to sales growth. The acceleration of the COVID vaccine should help boost U.S. hospitality revenues, which declined (-26%) as COVID restrictions dampened dining room capacity. International gastronomy declined (-44%) due to the COVID lockdown and capacity restrictions. Both segments should recover as the vaccinations spread. Risk tolerant investors looking for exposure to the plant-based meat category can watch out for opportunistic declines in Beyond Meat stocks.
Publication of the results for the first quarter of 2021
On May 6, 2021, Beyond Meat released the results of the first fiscal quarter 2021 for the quarter ending March 2021. The company reported earnings per share (EPS) of ($ -0.42) excluding one-time items versus consensus analyst estimates on a loss of (- $ 0.21) (- $ 0.21) from failure. Revenue rose 11.4% year over year to $ 108.16 million, falling short of analysts' estimate of $ 112.92 million. The company ended the quarter with $ 1.1 billion in cash with total debt of $ 1.4 billion.
Ethan Brown, CEO of Beyond Meat, stated, “We are excited about the sequential improvement in our sales growth and gross margin, despite ongoing COVID-19 pressures on our food service business. Throughout the first quarter, we continued to focus heavily on investing in and expanding manufacturing infrastructure in the US, EU and China. Developing and commercializing new products for our strategic QSR customers and retail markets; and research and development serving our key growth drivers in the areas of taste, nutrition and cost. When I look at the foundation we're creating, I've never been more optimistic about the future of Beyond Meat as a significant and sustainable global protein company. In the short term, we are cautiously returning to the practice of issuing guidelines, starting with net revenue, as we have recently seen slow thaws in food service both domestically and in certain international markets. ”Beyond Meat has provided inline estimates as expected is that Q2 2021 revenue will range between $ 135 million and $ 150 million, up from analyst consensus estimates of $ 141.79 million.
Take away conference calls
CEO Brown set the tone: “We have invested heavily in our business over the past year, building infrastructure, people, innovation capabilities, partnerships and product pipeline in view of our long-term growth and market share goals. More specifically, we are making a number of investments here in the US, EU and China to serve customers and consumers alike, and to put increasing pressure on the top three levers of taste, health and cost we believe are for mass adoption are vital. Making these substantial investments during a period of severe disruption in key segments of our business has an impact on our operating margin and key metrics such as gross margin through higher fixed costs. These results are not unexpected and stem directly from our belief that there is little point in limiting our ability to capture future growth due to temporary pandemic conditions. We will continue to make such investments and I am grateful to all of our team members who have worked so hard to build our foundation in such a tumultuous time. ”He described the Beyond Meat 3.0 burger patty recipe with half the saturated fat 80/20 Beef: “We are accompanying the launch of 3.0 with the announcement of the plant-based nutrition initiative at Stanford University School of Medicine. We are establishing and funding this five-year initiative to support peer-reviewed, clinically relevant studies of the health effects of a plant-based diet, including plant-based meat. "
Achieve price parity with animal meat
CEO Brown explained the significant focus on creating more conversions by reaching price parity of undervaluing animal protein (in at least one product category) by 2024. Much of this is due to scale-driven efficiency with more localized production and integrated end-to-end production processes. CEO Brown said, "We are continuing to optimize commercial production at the Pennsylvania facility we acquired late last year and are adding new lines at our Columbia, Missouri facility to support strategic QSR customers in our retail business," he said also the production in China: “As recently announced, we have started commercial production in our new plant in Jiaxing, China. This new facility represents our first end-to-end manufacturing facility outside of the US, established just a year after we first entered mainland China. I am very proud of our operations team and China management who worked so hard to reach the landmark milestone despite travel restrictions and other COVID-related obstacles. We expect the Jiaxing plant to significantly accelerate our path to market readiness while at the same time improving our cost structure and the sustainability of our business activities in China. "
Opportunistic pullback levels from BYND
Using the rifle charts on the weekly and daily charts can provide a short-term perspective of the playing field for BYND stock. The weekly rifle chart is losing momentum as the 5-period moving average (MA) falls towards its flat 15-period MA at $ 133.27 after trading off $ 121.35 Fibonacci (fib) level. The weekly stochastics peaked at the 80 band and then cruised back down. The weekly lower Bollinger Bands (BBs) are at $ 98.58. The weekly market structure high (MSH) triggered a dip below $ 167.90. The daily rifle chart is in a break as the 5-period daily MA flattens out at $ 128.35, halting the downtrend while the 15-period MA is still at $ 134.35 falls. Daily Stochastics tries to form a mini pup coil through the 20 band. The daily Low market structure (MSL) Buy triggers above the $ 131.52 level. Risk tolerant investors can find opportunistic pullback levels at $ 121.35, $ 113.01, $ 110.38, $ 105.69, $ 100.00, and $ 93.40 Fib monitor. The upward curves range from $ 145.25 fib all the way to $ 193.67.
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