Business Corpus: Beyond Meat Says It Can Handle A Huge Fast-Food Deal After Guiding Sales HighBeyond Meat said it can supply a big fast-food customer as more chains offer meat alternatives, after the recent IPO guided full-year revenue above consensus. The post Beyond Meat Says It Can Handle A Huge Fast-Food Deal After Guiding Sales High appeared first on Investor's Business Daily.

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Beyond Meat (BYND) said it can supply a big fast-food customer as more chains offer meat alternatives, after the recent IPO guided full-year revenue above consensus. Beyond Meat stock jumped.

Beyond Meat Earnings

Wall Street expected the company — which makes plant-based burgers and sausages that try to match the taste and texture of the real thing — to report a loss of 14 cents per share on revenue of $39 million, according to Zacks Investment Research.

The company reported a net loss of 14 cents a share, wider vs. a year-ago loss of 13 cents a share, as revenue shot up 215% to $40.2 million, led by Beyond Burger sales while frozen chicken strips were discontinued.

Retail revenue surged 111% to $19.6 million, while restaurant and foodservice revenue soared 491% to $20.6 million. Overall gross margin widen to 26.8% from 16.1% due to an increase in the amount of product sold, improved production efficiencies, and a greater share of revenues from fresh products.

Management sees full-year total revenue of more than $210 million, above consensus for $205 million.

During a conference call with analysts, CEO Ethan Brown called that guidance conservative. He also said Beyond Meat has the capacity to supply a fast-food chain, or quick-service restaurant (QSR).

"I don't see any material obstacle, and I don't see any manufacturing obstacle to being able to, in the appropriate amount of time and the right structure, take on many of the largest QSRs out there," he said.

The comment comes as McDonald's (MCD) has said it is keeping an eye on alternative meat. Meanwhile, Beyond Meat is already supplying Del Taco (TACO) with plant-based ground beef.

Beyond Meat Stock Above Buy Point

Beyond Meat stock priced at 25 ahead of its Nasdaq debut last month and has since quadrupled.

Shares jumped soared 28% to 127.39 in premarket trading on the stock market today, indicating a new high. By comparison, highly anticipated IPOs like Uber (UBER), Lyft (LYFT) and Pinterest (PINS) have seen shares stumble out of the gate.

Last week, Beyond Meat stock broke out of an IPO-base buy point of 96.88 and now looks to shoot beyond buy range. But with the market outlook in correction, investors should be extremely wary about buying and should instead focus on building watch lists for when the market recovers.

The recent rally in Beyond Meat stock has given the company a market value of nearly $6 billion. But the Composite Rating is a mediocre 76 out of a best-possible 99.

The company's bottom line is still in the red, as it tries to expand. The stock's EPS Rating, a gauge of a company's ability to grow profits, is a weak 12.

Fast-Food Deals To Boost Beyond Meat Earnings

The Beyond Meat earnings report arrives in the wake of a scorching run higher for the company after its IPO last month.

That ascent has been helped by some bullish calls from analysts, who say the company stands to gain as more wellness-minded customers seek alternatives to meat — at grocery stores and at fast-food chains alike.

Restaurant Brands International's (QSR) Burger King wants to sell plant-based Whopper patties from rival Impossible Foods nationwide. Tim Hortons, which Restaurant Brands also owns, said it would test Beyond Meat's plant-based sausages in breakfast sandwiches.

On Tuesday, the outlook for Beyond Meat stock and its rival improved as the Wall Street Journal reported that alternative meat providers are having trouble meeting rising demand. for plant-based burgers.

Analyst Ratings For Beyond Meat Stock

The company's stock-market ascent has been buoyed by optimism from some analysts.

Ahead of the Beyond Meat earnings report, JPMorgan analyst Ken Goldman last week called the growth opportunity for the company "extraordinary," as he gave Beyond Meat stock an overweight rating with a 97 price target.

Bernstein analyst Alexia Howard said Beyond Meat's sales could reach $2 billion in 2028 even if it grabs a mere 5% of the U.S.' plant-based meat industry. Howard began coverage of Beyond Meat stock with an outperform rating and an 81 price target.

Other analysts say that despite a solid business, the valuation of Beyond Meat stock already reflects years of gains.

"Beyond's R&D capabilities, purpose-driven branding, and early inroads with top restaurants and grocers give it a significant head start in this high-potential market," Credit Suisse analyst Robert Moskow said in a research note last week.

"However, we think the stock's valuation already factors in a best-case scenario for the company's growth rate over the next six years without taking into account typical near-term execution risk for early-stage startup companies," he continued.

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The post Beyond Meat Says It Can Handle A Huge Fast-Food Deal After Guiding Sales High appeared first on Investor's Business Daily.