Beyond Meat earnings: Shares rise, then fall, on mixed results

Beyond Meat, known for its patties made of pea-protein, saw sales rise 141% last quarter. It even turned a $1.8M profit. Not huge, but significantly better than the $6.6M loss it took last year. Beyond's facing a coronavirus see-saw situation: • The Up: WFH and the closure of restaurants has caused supermarkets sales to rise as people cook more meals at home. Plus, national corona-caused meat shortage position Beyond to gain new customers. • There is for sure downs to this situation when restaurants are closed .means it is not supplying it’s meat . Despite increased competition, its grocery business saw net sales of $50.5 million during the busy summer grilling months . Corona-conomy poses a perfect opportunity for Beyond to beef up its grocery game — but... Beyond may be too expensive for big grocery growth: Beyond Burgers are sold as 2-patty packs for around $5.99 — that's $12/pound, compared to $5/pound for real ground beef at Whole Foods (and you can buy beef in bulk, unlike Beyond). That's why... And it should focus on growth instead. Beyond's profit was mainly because its plant-based meat enjoys a high price tag. But it's still lagging cheaper meat-substitutes from MorningStar and Conagra in terms of market share. The value packs and discounts are a step in the right direction — they'll cut into profit in the short-term, but set Beyond up for increased growth.

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