It appears they are on track to hit 40% in the long run. Most meat companies - like Tyson (NYSE: TSN) - operate around 11% to 12% gross margins, with around a 5% operating expense rate, for operating profit margins in the 5% range.īeyond Meat’s gross margins are above 35%. On a trailing twelve month basis, gross margins are now at 36%, up more than 200 basis points from where they were just three months ago.Ī 35%-plus gross margin for Beyond Meat is a big number. Specifically, gross profit margins in the first quarter rose 12 points year-over-year and 5 points sequentially to nearly 39%. Improving MarginsĪrguably just as notable as Beyond Meat’s sustained robust demand trends in the first quarter were Beyond Meat’s soaring profit margins. ![]() So long as those two things remain true, BYND stock has a bright future. Beyond Meat continues to dominate that market. The plant-based meat growth narrative remains robust. Zooming out, the long-term bull thesis remains intact. retail rose 770 basis points in the quarter, with Beyond accounting for the top four best-selling SKUs in the whole plant-based meat category and the company outpacing its closest competitor in terms of sales growth by a factor of roughly six-times. Further, Beyond Meat’s market share in U.S. In other words, Beyond Meat sustained red-hot growth, even at a time when consumer spending fell off a cliff. More than that, Beyond Meat is the “Tesla of plant-based meat” in that the company is the undisputed leader and face of the market. Or, yes, plant-based meat and Beyond Meat.īy aligning itself with this massive consumption pivot, Beyond Meat has guaranteed itself rising demand for the foreseeable future. Or clean energy and Enphase Energy (NASDAQ: ENPH). Think electric cars and Tesla (NASDAQ: TSLA). In short, that long-term bull thesis is that an increasing number of socially and environmentally conscious consumers are increasingly choosing socially and environmentally positive products and services. ![]() Beyond Meat’s Strong Earningsīeyond Meat’s first quarter earnings report was strong, and broadly underscored the long-term bull thesis underpinning BYND stock. The fundamentals imply that BYND stock can and will run above $300 within the decade (and maybe even higher). Certain catalysts, such as aggressive expansion in China and a rebound in the foodservice channel, could spark supercharged growth in the second-half of 2020. Gross margins are improving rapidly and dramatically, paving the path for huge profit potential at scale. And my thoughts are backed by four big reasons:īeyond Meat’s strong earnings emphasize that the plant-based meat growth narrative is only gaining momentum, and that the company is extending its leadership position in the market. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Is it time to fade the rally? Or will Beyond Meat keep outperforming? To put that in perspective, the S&P 500 is down more than 10% in 2020. Year to date, the stock is now up nearly 60%. In sum, Beyond Meat’s earnings were good enough to send BYND stock up 20% to its highest levels since February. JPMorgan and the other big banks, of course, a lot of them are going to be reporting earnings this Friday.BYND Stock Will Reach $300 Sooner Than You Think JULIE HYMAN: Yeah, some individual stocks here include JPMorgan Chase, the big bank moving higher after an upgrade from Jefferies, the firm boosting JPMorgan's shares to a buy from a hold citing a stable earnings outlook, better revenue diversity, and insulation from capital burdens. Let's take a look at some of the top movers of the day. Tomorrow's consumer price index report is expected to drive markets for the rest of the week, perhaps. Stocks are pretty quiet today as investors await inflation data. And taking a look at some of the big movements that we're tracking here, the S&P 500 looking for direction this morning. We're about 30 minutes into the start of trading on the day. Video TranscriptīRAD SMITH: It's just after 10:00 AM in New York City, everyone. Yahoo Finance Live's Julie Hyman and Brad Smith check out several stocks trending after this morning's opening bell. Beyond Meat rolls out its latest plant-based product, Beyond Steak. Salesforce shares jump after announcing plans to raise prices of cloud products. JPMorgan stock rises on an upgrade from Jefferies analysts ahead of the bank's earnings report this week.
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