Beyond Meat (BYND) plans to report its second quarter earnings today after the markets close. For the quarter, analysts expect the company's revenue to increase more than 200%. However, analysts believe the company will incur a net loss during the quarter.
Beyond Meat's revenue growth
For the second quarter, analysts expect Beyond Meat to report revenues of $ 50.7 million, an increase of 203.5% of $ 17.4 million in the corresponding quarter of 2018. Growth is projected for both the retail and restaurant segments. Food services will boost the company's revenue. The increase in the number of retail distribution points and food services, the increase in demand from existing customers and the introduction of Beyond Burger in grocery stores in the US. UU. They could boost the company's revenues. However, the company suspended its frozen chicken strip product line in the first quarter of 2019. The company's decision to suspend the frozen chicken strip product line could offset part of BYND's revenue growth.
BYND will report a net loss
Analysts predict that Beyond Meat's net loss will decrease in the second quarter. For the quarter, the company's net loss is projected to be $ 4.5 million or a loss of $ 0.09 per share. In comparison, the company's net loss was $ 7.4 million in the corresponding quarter of 2018.
Since its IPO on May 2, Beyond Meat shares have been in a golden streak. The company had set its IPO at $ 25. As of July 26, the company was trading at $ 239.40, an increase of 839.6% of its IPO. The impressive performance of the first quarter, the healthy outlook, the development of new products and the new partnerships have led to an increase in the company's share price.
On July 24, Dunkin brands presented the Beyond Sausage breakfast sandwich with the Beyond Meat sausage pie made with 100% plant-based ingredients. Previously, on June 12, Tim Hortons of Restaurants Brand International (QSR) had presented Beyond Meat Breakfast Sandwiches at 4,000 of its restaurants in Canada. In addition, the company launched a new Beyond Beef product in the last week of June, which was designed to replicate traditional ground beef.
Multiple valuation and analyst recommendations
We have considered the multiple EV-to-sales for the analysis. As of July 26, the company was trading at a multiple of EV at sales of 48.9x. In comparison, their peers, Tyson Foods, Conagra Brands, General Mills and Mondelēz International, traded at an advanced PE multiple of 0.93x, 2.28x, 2.72x and 3.68x, respectively.
Beyond Meat is still in a growth phase and has considerable scope to expand. In May, Barclays analysts projected that the alternative meat market would reach $ 140 billion in the next decade. The scope of the expansion has allowed the company to operate at a multiple valuation value greater than its peers.
Before their second-quarter earnings, analysts prefer a "hold" rating for Beyond Meat. The eight analysts that follow the company have given it a "retention" rating. On average, the analyst target price for BYND is $ 115.67, a 50.8% drop from the current price of its shares.