Beyond Meat Inc. is getting a bounce from an insatiable appetite among meat eaters.
The maker of plant-based meat reported first-quarter net income of $1.8 million, or 3 cents a share, compared with a loss of $6.6 million, or 95 cents a share, in the year-ago period. Revenue grew 141% to $97.1 million from $40.2 million in the year-ago period. Analysts surveyed by FactSet had estimated a loss of 7 cents a share on revenue of $88.8 million on average.
The first-quarter results, announced after the market’s close Tuesday, initially sent Beyond Meat BYND, +5.25% shares up more than 7% in after-hours trading. Beyond Meat stock has roughly quadrupled from its initial public offering price of $25, and shares are up 26.5% in the past 12 months, while the S&P 500 index SPX, +0.90% has inched down 0.5%.
“I am proud of our first-quarter financial results, which exceeded our expectations despite an increasingly challenging operating environment due to the COVID-19 health crisis,” Beyond Meat Chief Executive Ethan Brown said in a statement announcing the results.
Beyond Meat offers meat alternatives that could find a new spotlight as the coronavirus pandemic damages the traditional-meat supply chain.
Plant closures at Tyson Foods Inc. TSN, +3.01% , the biggest U.S. meat company; Smithfield Foods Inc., the world’s No. 1 pork producer; and JBS SA, the biggest global meat company, underscore the challenges each face in producing meat while maintaining the safety of employees at plants, which have become hot spots for the spread of COVID-19. The closures have resulted in a 25% reduction of pork production and 10% of beef production in the U.S., according to the United Food and Commercial Workers International Union.
Tyson shares were clobbered Monday after it reported that production disruptions took a toll on profits.
See also: Tyson Foods stock slumps after earnings and sales miss
Disruptions in meat production amid escalating demand “without a doubt” will lead to higher prices, a Sysco Corp. SYY, -6.11% executive said during a conference call with analysts. At the same time, some Wendy’s Co. WEN, -2.43% restaurants have temporarily taken hamburgers off the menu. A random sampling of Wendy’s menus found 5% to 10% were chicken-only, Stifel analysts said in a note Tuesday.
Wendy’s acknowledged that certain menu items “may be temporarily limited” at some restaurants, though it’s uncertain how many of its roughly 5,800 U.S. eateries have been affected.
Beyond Meat should continue to see a revenue bump in the current quarter after its began selling product through nearly 4,200 Starbucks Inc. SBUX, +1.40% locations in China on April 21. Additionally, Starbucks on Monday said it would open more than 85% of its company-operated stores in the U.S. by the end of this week, and 90% by early June — albeit with limited hours and no dine-in service.
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