05

August, 2021

Beyond Meat (BYND) is Betting on “Chicken”

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Beyond Meat (BYND) is Betting on "Chicken"

Last quarter LikeFolio was the bearer of bad news for BYND meat. Consumer demand wasn’t rising at the rate investors expected.
 
The company posted misses on Revenue ($108.2 million vs. $113.18 million expected) and Earnings (-$0.42 vs. -$0.21 expected). Shares fell more than -10% after hours.
 
In the last 3 quarters, BYND’s retail channel has performed well (+27% YoY in Q1), but its food-service business has struggled (-26% YoY in the U.S. and -44% YoY Internationally), hindering total sales growth.
 
And data suggests the company hasn’t righted the ship yet…
Beyond Meat Mentions have dropped -45% YoY as the brand loses its new luster with consumers. 
 
This waning buzz is in line with the number of consumers talking about following a plant-based diet: -37% YoY.
 
Looking ahead, the company is hanging its hopes on “chicken”.
 
BYND launched its new plant-based Beyond Chicken Tenders (made from fava beans and peas) at 400 restaurants in the U.S. on July 8th, with hopes of capitalizing on increased demand for chicken.
 
High demand coupled with supply chain shortages is driving the price of real chicken higher. (Chicken wing prices have doubled in the past few months). This could be good timing for BYND’s recent release, but the product won’t begin contributing to revenue until 21Q3.
 
Looking ahead, it will be critical for Beyond to rejuvenate its foodservice business. Reopening will certainly help that, alongside new menu items — but our data suggests it may not be enough yet.
 
Beyond also faces rising competition: Impossible Foods products are now available on grocery store shelves, and have a sentiment rating 4 points higher vs. Beyond.
 
Landon talked about this in detail today on the TD Ameritrade Network.

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