Beyond Meat Inc. (NASDAQ: BYND) topped revenue expectations for the fourth quarter of 2019 but earnings missed the mark, sending the stock tumbling over 6% in aftermarket hours on Thursday.
Net revenues jumped 212% year-over-year to $98.5 million, smashing forecasts of $79.5 million. Revenue growth was driven by higher sales volume in the Fresh platform products across Retail, and Restaurant and Foodservice channels.
Net loss was $0.5 million, or $0.01 per share, compared to a net loss of $7.5 million, or $1.10 per share in the year-ago period. Analysts had projected earnings of $0.01 per share.
During the quarter, sales volumes in the Fresh platform were fueled by an increase in international sales, an expansion in the number of points of distribution, and the contribution from new products launched in the year.
Gross profit rose to $33.5 million, or 34% of net revenues, helped by an increase in the volume of products sold, production efficiency improvements and favorable mix.
For full-year 2020, net revenues are expected to come in the range of $490 million to $510 million, up 64% to 71% from 2019.
Beyond Meat faces challenges due to tough competition in the plant-based food products category from rivals such as Impossible Foods and retailers like Kroger (NYSE: KR) and Tyson Foods (NYSE: TSN) who are exploring meat alternatives, as well as from a shortfall in production that affects its ability to meet the rapidly-increasing demand for its products.
The company’s efforts in innovation as well as its strategic partnerships with various retailers and restaurant chains will help drive growth going forward. On Wednesday, Beyond Meat announced that Starbucks (NYSE: SBUX) will launch breakfast sandwiches with Beyond Meat sausage patties at all its locations in Canada.
Earlier this month, Beyond Meat entered into a partnership with French retailer Casino Group to sell its products in 500 supermarkets across the country.
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