(The Canadian Press)

Beyond Meat’s sales jump as more try plant-based burgers

KFC announced it is testing a Beyond Meat chicken nugget in the U.S.

More people are throwing plant-based burgers on the grill this summer.

Beyond Meat, which makes pea protein-based burgers and sausages, said Tuesday its second quarter revenue jumped 69% to $113 million as more households tried its products in the U.S. and elsewhere.

Sales far outpaced Wall Street’s forecast of $99 million, according to analysts polled by FactSet.

The El Segundo, California-based company reported a net loss of $10 million for the April-June period. Adjusted for one-time items, including coronavirus-related expenses, Beyond Meat lost 2 cents per share. That was in line with analysts’ expectations.

Normally, Beyond Meat sells half its output to restaurants and food service, Beyond Meat President and CEO Ethan Brown said. The company had to make a rapid pivot when those sales cratered this spring due to coronavirus-related closures.

Burgers and sausages that were packaged for food service were returned to factories and repackaged for consumers. In mid-June, for example, the company launched a 10-burger value pack for $15.99 at Walmart, Target and other groceries. Normally, two four-ounce patties cost $5.99.

As a result, Beyond Meat’s U.S. retail sales nearly doubled during the quarter, even as food service sales dropped 61%.

“It’s not a small exercise, when it’s physical goods, to make a change like that over a quarter,” Brown said. The company spent $5.9 million repackaging goods during the quarter.

Brown said that by June, 4.9% of U.S. households had tried Beyond Meat products, up from 3.5% in January. More important, half of those who bought Beyond products bought them again, up from 45% in January, Brown said.

International retail sales were up 167%. Brown said Beyond Meat is now sold in 84 countries, up from 51 a year ago. International food-service sales, however, dropped 56.5%.

Beyond Meat continued to invest in international expansion during the quarter. In June, it opened a manufacturing facility in the Netherlands with its Dutch partner, Zandbergen. Brown said Beyond Meat also plans to start production in China by the end of this year.

“We believe the magnitude of the opportunity in Asia merits significant investment,” Brown said.

In April, Beyond Meat debuted in at Starbucks, which sells the company’s imitation beef in lasagna, pasta and a spicy wrap. Brown said Beyond Meat products were also offered for a limited time at Pizza Hut, Taco Bell and KFC restaurants in China through a partnership with their parent company, Yum Brands.

KFC is also testing a Beyond Meat chicken nugget in the U.S.

Beyond Meat declined to give forward-looking financial guidance, citing the pandemic.

It shares rose 6% to close at $142.25 Tuesday. But they fell 7.5% in after-hours trading following the release of the earnings report.

Dee-Ann Durbin, The Associated Press

Like us on Facebook and follow us on Twitter.

Want to support local journalism? Make a donation here.

Vegan and Vegetarian

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Annual Thanksgiving Food Drive garnishes generous portions

Food donations will sustain the Prince Rupert Food Bank for three months.

Unofficial holidays: Here’s what people are celebrating for the week of Sept. 27 to Oct. 3

World Farm Animals Day, Drink Beer Day and Virus Appreciation Day are all coming up this week

Haida hereditary chief is BC Liberal Candidate for North Coast Region

Roy Jones Jr. is named BC Liberal MLA candidate for the North Coast

$3.4 million childcare centre to be built in Lax Kw’alaams

Lax Kw’alaams funding has been approved through the provincial New Spaces Fund

COVID-19 cases grow to 13 at B.C. First Nation near Fort St. James

“This is very serious,” says Nak’azdli Whut’en Chief

QUIZ: Do you know what’s on TV?

Fall is normally the time when new television shows are released

End of CERB means uncertainty for some, new system for others

As of a week ago, the CERB had paid out $79.3 billion to 8.8 million people

Horgan, Wilkinson trade barbs over MSP premiums, health care at campaign stops

Horgan called a snap election for Oct. 24 earlier this week

PHOTOS: 2nd calf in a month confirmed among Southern Resident killer whale pod

Center for Whale Research said they will eagerly await to observe the calf to evaluate its health

Join Black Press Media and Do Some Good

Pay it Forward program supports local businesses in their community giving

2 British Columbians arrested, 3 at large in massive Alberta drug bust

Eight people are facing 33 charges in what police have dubbed Project Incumbent

97 distressed horses, cats and dogs seized from farm in Princeton

RCMP assisted as BC SPCA executed search warrant

$250K reward offered as investigation continues into Sea to Sky Gondola vandalism

Police also asking for specific footage of Sea to Sky highway around time of incident

Most Read