Connect with us

BenzingaEditorial

Beyond Meat Is Set to Thrive Despite Rising Competition

Published

on

Overwin Corona Virus

Beyond Meat (NASDAQ:BYND), the maker of vegetable-based meat substitutes is enjoying great demand as the pandemic made people more health-aware. Its stock price has more than doubled in 2020. Beyond Meat came a long way since four years ago when it welcomed Tyson Foods (NYSE:TSN) as a minority investor. Its CEO Ethan Brown believed this was the best way to grow the plant-based meat market. Afteral, if you cannot beat the opposing, entrenched animal-protein incumbents like Tyson, join them.

Ambitious goals

This move was controversial at the time but Tyson’s investment helped this small company make its way towards becoming a mainstream food option. Tyson exited its Beyond Meat investment in 2019. But Beyond Meat does not intend to partner with another major animal-protein company in the near future. It has set a clear goal to become a Tyson-caliber business, maybe even within the next decade.

Backdrop

Beyond Meat has been around since 2009, but it went public last year. Last summer, it jumped at its first large-scale commercial opportunity when Dunkin Donuts (NASDAQ:DNKN) started a pilot program of its sausage sandwiches in Manhattan. Nationwide distribution followed in the fall of 2019. Meanwhile, Beyond Meat has found plenty of other distribution channels over the last year and a half and has since enjoyed valuable word-of-mouth advertising.

Needless to say, Beyond Meat has a long way to go to match the production scale of Tyson. It sold just over 51 million pounds of plant-based products last year which is a significant increase from 15 million pounds in 2018. It is laying foundation to become a global food powerhouse.

Production is one thing, distribution is another

At the end of last year, Beyond Meat’s products were available in 65 countries, but mainly through exports. This year, it made progress by acquiring a manufacturing facility in the Netherlands with plans to open a co-manufacturing plant to facilitate Beyond Meat production and distribution throughout Europe. It also reached an agreement with local Chinese officials to open a facility near Shanghai to increase the availability of its products in Asia. Beyond Meat is expanding its distribution, including Walmart (NYSE: WMT) which just tripled its distribution of Beyond Meat products.

Accessibility is improving

Although it was off to a slow start, Beyond Meat’s plant-based offerings are now within reach. Kroger (NYSE:KR) has been on the Beyond Burgers for almost three years now. Over the summer, Target (NYSE:TGT) sold out its Cookout Classic patties. Whole Foods Market’s offerings included its products even before it was acquired by Amazon (NASDAQ:AMZN). Beyond Meat sandwiches can be also found at many locations such as The Cheesecake Factory (NASDAQ:CAKE). Even McDonald’s (NYSE:MCD) was forced to board the plan-based train as it introduced Beyond Burgers in Germany, but who says a larger deal won’t follow up later.

The way forward is chicken

Speaking of new products, although Beyond Meat has many beef and pork alternatives, but when it comes to chicken, it is perfecting a new product which is yet to be launched. Back in July, its ongoing trial of Beyond Fried Chicken at Yum! Brands’ (NYSE: YUM) KFC locations in California entered its third round. Therefore, it is reasonable to expect Beyond Meat will launch a widely available chicken product in the near future.

Competitors

Rising competition could be a problem, but Citigroup (NYSE: C) analyst Wendy Nicholson believes there could be room for more than one winner.

In Wednesday’s report, Nicholson found that although alternative-meat sales have moderated from their March highs when many lockdowns began, they are still higher than before the pandemic. Moreover, in the four weeks up to October 3rd, sales of these jumped 39.1%, which is up from 37.2% in September. These figures are way ahead of the 10.9% increase in sales of fresh meat. Nicholson concluded that the company’s new product lines are resonating well with consumers, even with increased competition. Beyond Meats ’s YoY sales growth accelerated in October, rising from 49.3% in September to 56.4%, which is significantly ahead of the 39.1% logged by the plant-based category as a whole.

Nestlé joining the green train

As the demand for plant-based foods continues to surge, Reuters reported Nestlé (OTC: NSRGY) will launch more plant-based products in the next few weeks. Since the beginning of this year, the Swiss food giant has made clear its intentions to aggressively innovate to capitalize on vegan and vegetarian opportunities.

Outlook

A much higher profitability isn’t guaranteed, but solid foundation is being laid this year. The potential is there, reflected in the fact that Beyond Meat’s stock has more than doubled since this unprecedented year began with plant-based trend poised to strengthen even further as more people try out these new products. If it can execute Ethan Brown’s mission, Beyond Meat can certainly reward its shareholders over the next decade.

This article is not a press release and is contributed by a verified independent journalist for IAMNewswire. It should not be construed as investment advice at any time please read the full disclosure . IAM Newswire does not hold any position in the mentioned companies. Press Releases – If you are looking for full Press release distribution contact: press@iamnewswire.com Contributors – IAM Newswire accepts pitches. If you’re interested in becoming an IAM journalist contact: contributors@iamnewswire.com

BenzingaEditorial

This Week’s Recap

Published

on

The market and the economy continue to open, which is probably a result of bottled-up demand for many products and services affected by the pandemic. Maybe the inflation or rising bond yields will trigger the selloff on the market at some moment, but the current Fed’s transitory inflation message has been accepted by many investors. Also, the best way to deal with inflation is to stay with your investments and keep your faith in the market. So, despite the jump of May’s consumer-price index, that did not affect the investors who adopted a different mindset, so all three major averages finished in a positive zone.

The Dow Jones Industrial Average managed to recover from one of the steeper declines, thanks to gains from companies like IBM (NYSE: IBM), Microsoft (NASDAQ: MSFT), and Salesforce (NYSE: CRM). The Nasdaq Composite Index has also risen 49.09 points to 14,069.42. The tech-heavy index continued with the positive run, led by DocuSign (NASDAQ: DOCU), Zoom Video (NASDAQ: ZM), and CrowdStrike (NASDAQ: CRWD).

Tuesday brought us an earnings report from Oracle

Although it was a slim week for the earnings reports, Oracle (NYSE: ORCL) announced its last quarter results, as well as plans and guidance. The results are better than expected, as the achieved revenues were $11.23 billion (compared to the expected $11.04 billion) and the achieved adjusted earnings of $1.54 per share (compared to the expected $1.31). On the other hand, the company revealed its quarterly revenue guidance, which is lower than expected due to the plans to increase investments to support its cloud strategy and keep migrating existing on-premises customers to the cloud. This all led to a share fall of 5%, as many investors are skeptical if Oracle can successfully compete with major “cloud” players like Amazon (NASDAQ: AMZN), Salesforce, or Workday (NASDAQ: WDAY).

Adobe reported impressive results on Thursday

The Wall Street analysts recognized the work-from-home trend and this second digitization era as the main reasons for Adobe’s (NASDAQ: ADBE) sustained growth and therefore a monster quarter. And they were right. The company reported revenues of $3.84 billion, which is an increase of 23% compared year to year. That is also above the Wall Street estimate of $3.73 billion. The digital media business revenues, consisting of Creative Cloud and Document Cloud, grew by 25% compared to the previous year. The adjusted earnings per share were $3.03, which is higher than the estimated $2.81. For the following quarter, the company expects revenues of $3.88 billion and adjusted earnings per share of $3.00.

Conclusion

All these factors taken together, proven by positive index movements and earnings results better than anticipated, support the fact that the economic recovery is firmly underway, and those are very encouraging news.

This article is not a press release and is contributed by a verified independent journalist for IAMNewswire. It should not be construed as investment advice at any time please read the full disclosure. IAM Newswire does not hold any position in the mentioned companies. Press Releases – If you are looking for full Press release distribution contact: press@iamnewswire.com Contributors – IAM Newswire accepts pitches. If you’re interested in becoming an IAM journalist contact: contributors@iamnewswire.com

Continue Reading

BenzingaEditorial

Several new earnings reports and more management presentations this week

Published

on

We might be witnessing the lower volume of quarterly earnings reports this week, but that only means we passed last quarter’s report peak and we are getting ready for the June-quarter earnings season, which will hit us not long after the 4th of July. However, we do not lack many management presentations, which are typical after announcing earnings reports. This week brings us news for future result expectations from more than 30 companies, so let’s try and not miss any important clues. Besides earnings reports, this week is bringing us a total of 9 new IPOs like Marqeta, Inc. (NASDAQ: MQ), TaskUs, Inc. (NASDAQ: TASK), LifeStance Health Group, Inc. (NASDAQ: LFST), monday.com Ltd. (NASDAQ: MNDY), Zeta Global Holdings Corp.(NYSE: ZETA) and Jaws Hurricane Acquisition Corp (NASDAQ: HCNEU).

Monday

Yesterday we saw the first quarter report of fiscal 2022 for Marvell Technology (NASDAQ: MRVL), a Delaware-based company that develops and produces semiconductors and related technology. Marvel Technologies reported new revenues of $832 million, which is an increase of 20% year-to-year. GAAP gross profit margin was 50.2% and non-GAAP gross margin was 64.3%, while GAAP diluted loss per share was $0.13 and non-GAAP diluted income per share was $0.29.

Also, Vail Resorts, Inc. (NYSE: MTN) which owns and operates several premier mountain resorts in Colorado and California, reported fiscal 2021 third-quarter results yesterday. The report showed a net income of $274.6 million which is an increase of 80% compared to the third fiscal quarter of 2020. The reported EBITDA was $462.2 million, which is a significant increase from last year same quarter’s $304.4 million.

Tuesday

Besides earnings reports from Navistar International (NYSE: NAV) and Calavo Growers (NASDAQ: CVGW) on Tuesday, we are also expecting reports from Thor Industries (NYSE: THO), Casey’s General Stores (NASDAQ: CASY), and ABM Industries (NYSE: ABM).

Wednesday

Wednesday is reserved for earnings reports from Brown Forman (NYSE: BF-B), United Natural Foods (NYSE: UNFI), and Restoration Hardware (NYSE: RH). RH, the California-based furnishing company is expected to report earnings of $3.99 per share, which is growth of over 214% compared to the same period last year. Also, GameStop Corp (NYSE: GME), one of the world’s largest video game retailer’s earnings report is expected on Wednesday. The expected loss for the first quarter is $0.68 per share, which is an improvement from the same period last year (-%1.61 per share). In order to accelerate its transformation, the company decided to restructure its board, so it can keep up with industry growth and company expansion in the digital arena.

Thursday

On Thursday, we expect to see reports from National Beverage (NASDAQ: FIZZ), Chewy (NYSE: CHWY), and Dave & Buster’s (NASDAQ: PLAY). Chewy, the Florida-based pet store retailer, is expected to report a quarterly revenue growth of over 125%, compared year over year.

Friday

We are not expecting any major earnings reports on Friday.

This article is not a press release and is contributed by a verified independent journalist for IAMNewswire. It should not be construed as investment advice at any time please read the full disclosure. IAM Newswire does not hold any position in the mentioned companies. Press Releases – If you are looking for full Press release distribution contact: press@iamnewswire.com Contributors – IAM Newswire accepts pitches. If you’re interested in becoming an IAM journalist contact: contributors@iamnewswire.com

Continue Reading

BenzingaEditorial

The week may be starting slowly but do not let that mislead you

Published

on

The celebration of Memorial Day in the U.S. caused the slower start, but the rest of the week will bring us plenty of news, updates, and earnings reports from companies like Zoom Video Communications (NASDAQ: ZM), Hewlett-Packard Enterprise (NYSE: HPE), Advanced Auto Parts (NYSE: AAP) and Slack Technologies, Inc. (NYSE: WORK). This week will also bring us news from the EV and the IPO worlds, as well as the 2021 Bitcoin conference, one of the biggest cryptocurrency events this year. Before we move to the day-to-day highlights, if you are a small business owner, do not miss today’s deadline to apply for the latest round of the Paycheck Protection Program funding.

Tuesday

This week’s earnings reports will be led by Kirkland’s Inc (NASDAQ: KIRK), and that is due before the market opens. It will be followed by HP’s and Zoom’s earnings reports, after the bell. SoFi Technologies (NYSE: SOFI) is a fintech startup IPO joining the trading world after its SPAC merger on Friday.

 

Wednesday

Before the market opens on Wednesday, we are expecting the earnings reports from Advance Auto Parts and Lands’ End Inc (NASDAQ: LE). The reports will keep coming after the bell as well, so we are keen to see how NetApp Inc (NASDAQ: NTAP), Endeavor Group Holdings (NYSE: EDR), Splunk Inc (NASDAQ: SPLK), and PVH Corp (NYSE: PVH) did in the previous period. Wednesday is also the day when we are expecting the Beige Book, which will give us the latest analysis of the economic conditions in the U.S. as the COVID-19 restrictions reduce.

Thursday

Thursday is expected to be the busiest of the week, when we expect earnings reports from Express Inc (NYSE: EXPR), Asana Inc (NYSE: ASAN), Duluth Holdings Inc (NASDAQ: DLTH), Broadcom Inc (NASDAQ: AVGO), The Toro Company (NYSE: TTC), The Cooper Companies (NYSE: COO), Science Applications International Corporation (NYSE: SAIC), Lululemon Athletica (NASDAQ: LULU), as well as Slack Technologies.

Thursday is a big day for NVIDIA Corporation (NASDAQ: NVDA) also. After reporting the record profits and earnings, highly affected by the company’s revenues from graphic cards for crypto mining, the shareholders will vote on a 4-for-1 stock split. That will increase the number of authorized shares of common stock, and if approved, each shareholder will receive an additional dividend of three additional shares.

Thursday will be also interesting in the automotive world. Kia will start taking reservations for its new EV6 crossover, while Nio Inc (NYSE: NIO), the Chinese automaker, will hold a general meeting so it can increase the diversity of its board.

This day will also be dominated by cryptocurrencies, as the 2021 Bitcoin conference, taking place in Miami, will kick-off.

Friday

The week’s end is reserved for the earnings report from Hooker Furniture Corporation (NASDAQ: HOFT), and that is expected before the opening bell. During the rest of Friday, we will focus on the latest unemployment rates and data.

This article is not a press release and is contributed by a verified independent journalist for IAMNewswire. It should not be construed as investment advice at any time please read the full disclosure. IAM Newswire does not hold any position in the mentioned companies. Press Releases – If you are looking for full Press release distribution contact: press@iamnewswire.com Contributors – IAM Newswire accepts pitches. If you’re interested in becoming an IAM journalist contact: contributors@iamnewswire.com

Continue Reading
Advertisement

TRENDING

Advertisement

Submit an Article

Send us your details and the subject of your article and an IAM editor will be in touch with you shortly

Trending