Beyond Meat’s earnings for the second quarter came out on Monday, July 29. The company reported mixed second-quarter results. However, it raised its full-year revenue outlook. Beyond Meat stock (BYND), which has skyrocketed nearly 800% since its IPO in May, fell 12.5% in the extended session of trading on Monday after the stellar rally.
The company generated $67.25 million in revenue during the second quarter, up 287.2% year-over-year. Beyond Meat’s earnings handily beat the Wall Street estimate of $52.7 million.
The company posted a net loss of $9.4 million, which shrank from a $7.4 million loss in the same quarter last year. Excluding certain one-time items, the company lost $0.24 per share. This loss is much worse than analysts’ estimate for a loss of $0.08 per share. The big miss is the main reason BYND stock tanked after-hours.
Beyond Meat earnings bring higher revenue outlook for 2019
The vegan “meat” maker also raised its revenue outlook for the year. The company projects that its revenue for 2019 will reach $240 million. In the previous quarter, the company had estimated that it would generate $240 million in revenue. However, that number excluded revenue from restaurants that were testing its products.
Beyond Meat’s business from restaurants and food services made up nearly half of the company’s revenue in the second quarter, generating $33.1 million. This segment grew a whopping 483% year-over-year, and it could be a key revenue driver going forward.
Meanwhile, the company’s main retail business generated revenue of $34.1 million in the quarter. Last month, the “meatier” version of the Beyond Burger hit grocery stores, boosting Beyond Meat’s retail business. Revenue from this business grew 192% year-over-year.
Beyond Meat has a huge scope for growth—but also strong rivals
Beyond Meat’s vegan meat products have risen to fame since 2016, after the company launched the first plant-based burger sold in the meat section of grocery stores. Many households are giving up meat and switching to plant-based substitutes. However, Beyond Meat faces competition from Impossible Foods as well as traditional food companies like Nestlé and Tyson.
Beyond Meat’s astronomical surge prompted some analysts to downgrade the stock. Last month, J.P. Morgan downgraded the stock mainly because it had run up too much, causing extremely high valuations.