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Beyond Meat to report earnings as investors eye COVID-19 rebound

Alexandra Canal
·Producer
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Beyond Meat (BYND) is set to report first quarter earnings after the bell on Thursday, with analysts eager to see if rising consumer interest in alternative foods can help offset a weak, pandemic-stricken foodservice channel —which is pressuring sales and profits.

Here are Wall Street's consensus estimates, compiled by Bloomberg:

  • Revenue: $113.18 million

  • Adj. profit/loss per share: -$0.21 cents

These results would indicate a sharp decline in quarterly earnings compared to one year ago, when the plant-based meat company reported adjusted earnings of 6 cents per share. 

In the fourth quarter of 2020, Beyond Meat's net loss widened to $25.1 million, compared to just under $500,000 in the comparable year-ago quarter. That included $3.7 million in expenses attributable to COVID-19. 

A Beyond Meat Burger is seen on display at a store in Port Washington, New York, U.S., June 3, 2019. Picture taken June 3, 2019. REUTERS/Shannon Stapleton
A Beyond Meat Burger is seen on display at a store in Port Washington, New York, U.S., June 3, 2019. Picture taken June 3, 2019. REUTERS/Shannon Stapleton

The pandemic wrecked havoc on the food and restaurant space for most of last year as diners remained largely indoors. That hammered Beyond's foodservice sales during Q4, which plunged 42.6% and 62.9% in the U.S. and abroad, respectively. 

The company has been transparent about COVID-19 era challenges, noting in previous earnings that streamlined menus, declining foot traffic and operating capacity curbs all played a role in the declines. 

Consequently, the company has shifted its focus to grocery, convenience stores and other forms of distribution with U.S. retail sales rising over 76% to $62.1 million in the fourth quarter. 

Innovation drives growth

Beyond Meat has battled coronavirus headwinds by routinely adding innovative and premium product offerings — from Beyond Meatballs to Beyond Breakfast Sausage Links — in addition to striking partnerships with big-name chains and retailers including Costco (COST), Taco Bell (YUM), Subway, TGI Friday’s, Dunkin’ and Pizza Hut. 

This week, the company launched a new version of its plant-based Beyond Burger at grocery stores nationwide. Dubbed the brand's juiciest plant-based patty yet, a four-pack will set one back $9.99.

Beyond Burger 3.0 (Courtesy: Beyond Meat)
Beyond Burger 3.0 (Courtesy: Beyond Meat)

The new recipe, which more resembles the flavor and texture of ground beef, is set to be introduced to restaurant partners beginning in June.

"As we get closer to that beef experience that we all love, or most of us, we bring consumers into the brand and then we obviously are able to accomplish more of our broader objectives," Beyond Meat CEO Ethan Brown previously told Yahoo Finance. 

And competition in the space continues to heat up. 

In recent months, plant-based competitor Impossible Foods has slashed prices in a bid to capture market share from Beyond Meat ahead of a potential IPO. 

Additionally, Tyson Foods (TSN) is set to launch plant-based hamburgers and sausages ahead of the summer grilling season. Beyond's stock initially dipped on that news. 

Shares of Beyond Meat have risen 21% over the last 12 months, giving the company a market value of just over $7.5 billion. 

Alexandra is a Producer & Entertainment Correspondent at Yahoo Finance. Follow her on Twitter @alliecanal8193

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