{"id":106776,"date":"2020-11-07T01:25:00","date_gmt":"2020-11-06T22:25:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/beyond-meat-earnings-preview-competition-and-pricing-could-take-a-toll-on-margins\/"},"modified":"2020-11-07T01:25:00","modified_gmt":"2020-11-06T22:25:00","slug":"beyond-meat-earnings-preview-competition-and-pricing-could-take-a-toll-on-margins","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/beyond-meat-earnings-preview-competition-and-pricing-could-take-a-toll-on-margins\/","title":{"rendered":"#\n  Beyond Meat earnings preview: Competition and pricing could take a toll on margins"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a410edea7379\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a410edea7379\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/beyond-meat-earnings-preview-competition-and-pricing-could-take-a-toll-on-margins\/#Beyond_Meat_continues_to_launch_new_products_and_expand_distribution_but_faces_competition\" >Beyond Meat continues to launch new products and expand distribution, but faces competition.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/beyond-meat-earnings-preview-competition-and-pricing-could-take-a-toll-on-margins\/#Tonya_Garcia\" >Tonya Garcia<\/a><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong>#<br \/>\n  Beyond Meat earnings preview: Competition and pricing could take a toll on margins<br \/>\n<\/strong>&#8221;<\/p>\n<h2 class=\"article__subhead\" itemprop=\"alternativeHeadline\">\n<\/h2>\n<p><\/p>\n<div class=\"column column--full article__content\">\n<div id=\"js-article__body\" class=\"article__body article-wrap at16-col16 barrons-article-wrap\" itemprop=\"articleBody\" data-sbid=\"WP-MKTW-0000060757\">\n<div class=\"barrons-article-ad-wrapper\">\n<div data-track=\"barrons-article-ad-wrap\" class=\"barrons-article-ad sticky_item\">\n<div class=\"barrons-main-article-ad-target sticky_target body_ad\" aria-hidden=\"true\"><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<div data-layout=\"inline\n              \" data-layout-mobile=\"\" class=\"\n        media-object\n        type-InsetMediaIllustration\n          inline\n  article__inset\n        article__inset--type-InsetMediaIllustration\n          article__inset--inline\n  \"><\/p>\n<figure class=\"\n        media-object-image\n        enlarge-image\n        renoImageFormat-\n        img-inline\n        article__inset__image\n      \" itemscope itemtype=\"http:\/\/schema.org\/ImageObject\"><\/p>\n<div style=\"padding-bottom:64.765625%;\" data-mobile-ratio=\"64.765625%\" data-layout-ratio=\"64.765625%\" data-subtype=\"\" class=\"image-container  responsive-media article__inset__image__image\">\n        <img decoding=\"async\" srcset=\"https:\/\/images.mktw.net\/im-256626?width=140&amp;size=1.5440289505428226 140w,\nhttps:\/\/images.mktw.net\/im-256626?width=540&amp;size=1.5440289505428226 540w,\nhttps:\/\/images.mktw.net\/im-256626?width=620&amp;size=1.5440289505428226 620w,\nhttps:\/\/images.mktw.net\/im-256626?width=700&amp;size=1.5440289505428226 700w,\nhttps:\/\/images.mktw.net\/im-256626?width=860&amp;size=1.5440289505428226 860w,\nhttps:\/\/images.mktw.net\/im-256626?width=1260&amp;size=1.5440289505428226 1260w\" sizes=\"(max-width: 140px) 100px,\n(max-width: 540px) 500px,\n(max-width: 620px) 580px,\n(max-width: 700px) 660px,\n(max-width: 860px) 820px,\n1260px\" src=\"https:\/\/images.mktw.net\/im-256626?width=620&amp;size=1.5440289505428226\" data-enlarge=\"https:\/\/images.mktw.net\/im-256626?width=1260&amp;size=1.5440289505428226\" alt=\"\" title=\"Beyond Meat continues to launch new products and expand distribution, but faces competition.\"><\/div><figcaption class=\"wsj-article-caption article__inset__image__caption\" itemprop=\"caption\">\n<h4 class=\"wsj-article-caption-content\"><span class=\"ez-toc-section\" id=\"Beyond_Meat_continues_to_launch_new_products_and_expand_distribution_but_faces_competition\"><\/span>Beyond Meat continues to launch new products and expand distribution, but faces competition.<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p>      <span class=\"wsj-article-credit article__inset__image__caption__credit\" itemprop=\"creator\"><br \/>\n            Beyond Meat<br \/>\n          <\/span><br \/>\n  <\/figcaption><\/figure>\n<\/div>\n<p>       Beyond Meat Inc.<br \/>\n        BYND,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/211617595\/composite\" class=\"negative\">-0.11%<\/bg-quote><br \/>\n       is scheduled to report third-quarter earnings on Monday amid a competitive landscape that seems to grow more crowded by the day.<\/p>\n<div class=\"paywall\">\n       Over the past couple of months, Beyond Meat has announced a flurry of <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">news<\/a> including a partnership for plant-based Jamaican patties to be sold at Golden Krust; the launch of Beyond Breakfast Sausage Links at grocery stores across the country; and increased grocery distribution of Beyond Breakfast Sausage Patties at retailers like Kroger Co.<br \/>\n        KR,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/206215053\/composite\" class=\"positive\">+1.37%<\/bg-quote><span>,<\/span><br \/>\n       Walmart Inc.<br \/>\n        WMT,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/207374728\/composite\" class=\"positive\">+1.60%<\/bg-quote><br \/>\n       and Publix.<\/p>\n<p> Beyond Meat\u2019s biggest competitor, Impossible Foods, has made news as well with expanded distribution, additional funding and more. <\/p>\n<p><strong>Read:<\/strong>  Papa John\u2019s CEO says the company has added more than 8 million new customers this year <\/p>\n<p>And other plant-based protein and meat alternative companies are making a ton of their own announcements. Planterra Foods\u2019 plant-based brand Ozo launched with help from Jesse Tyler Ferguson, one of the stars of the TV show \u201cModern Family.\u201d<\/p>\n<div data-layout=\"inline\n              \" data-layout-mobile=\"\" class=\"\n        media-object\n        type-InsetTweet\n          inline\n    scope-web|mobileapps\n  article__inset\n        article__inset--type-InsetTweet\n          article__inset--inline\n  \"><\/p>\n<div class=\"dynamic-inset-container article__inset__dynamic\">\n<style>\n            iframe.twitter-tweet {\n                width: 100% !important;\n            }\n        <\/style>\n<blockquote class=\"twitter-tweet\" lang=\"en\"><p>\n            <a rel=\"nofollow noopener noreferrer\" target=\"_blank\" href=\"https:\/\/twitter.com\/OzoFoods\/status\/1320791493561389056\"><\/a>\n            <\/p><\/blockquote>\n<p>        <script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/div>\n<\/p><\/div>\n<p>       Plant-based egg makers Just Egg expanded in Asia, a region where<br \/>\nboth Beyond Meat and Impossible Foods have been making inroads.<\/p>\n<p>And Prime Roots, which makes plant-based meat and seafood, is now available at retailers including Amazon.com Inc.\u2019s<br \/>\n        AMZN,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/210331248\/composite\" class=\"negative\">-0.32%<\/bg-quote><br \/>\n       Whole Foods Market.<\/p>\n<p>UBS analysts highlight Nielsen data shows that Beyond Meat sales were up 58% for the 13 weeks ending Sept. 28. However, food service is under pressure due to the coronavirus. And Beyond Meat has been bringing the price of its products down in order to compete with traditional animal protein.<\/p>\n<p>\u201cManagement has consistently messaged that it would use<br \/>\ngross margin upside to invest in price,\u201d UBS analysts led by Erika Jackson<br \/>\nwrote in a Friday note. \u201cThe debate is whether this seemingly aggressive<br \/>\npricing was all strategic, or whether there was (or will be) a marketplace<br \/>\ncomponent given increased competition in Beyond Meat\u2019s key categories.\u201d<\/p>\n<div id=\"cx-membership-tile\"><\/div>\n<p>UBS rates Beyond Meat stock sell with a $110 price target.<\/p>\n<p>In an earlier UBS note focused on some of the risks Beyond Meat faces.<\/p>\n<p><strong>See: <\/strong> Coronavirus is driving a new generation of home cooks to Kraft Heinz products <\/p>\n<p>\u201cWe believe increased competition from branded peers and<br \/>\nprivate label (especially in a recession) pose a threat to Beyond Meat, and as<br \/>\nplant-based meat trial and retention growth slow, it may be difficult for<br \/>\nBeyond Meat to grow its valuation.\u201d<\/p>\n<p>CFRA also expressed its own margin concerns.<\/p>\n<p>\u201cBeyond Meat has been focused on lowering its products\u2019<br \/>\nprice point to eventually reach price parity with conventional animal meat,<br \/>\nwhich we believe will eat into margins this quarter,\u201d wrote Arun Sundaram.<\/p>\n<p>CFRA says Beyond Meat\u2019s U.S. food-service sales in the second quarter were down dramatically, more than 70%. Though there has been some recovery, CFRA says that could plateau as cold weather sets in and coronavirus cases surge.<\/p>\n<p>\u201cLarger, quick-service restaurants historically represented one-third of Beyond Meat\u2019s food-service sales, while the remaining two-thirds consisted of smaller restaurants, including independent restaurants and mom-and-pop shops,\u201d CFRA said. <\/p>\n<p>\u201cIt could take a very long time before independent<br \/>\nrestaurants and mom-and-pop shops fully recover from Covid-19. This puts more<br \/>\npressure on Beyond Meat to gain new customers.\u201d<\/p>\n<p>Beyond Meat has an average hold rating and average target<br \/>\nprice of $129.21, according to 22 analysts polled by FactSet.<\/p>\n<p><strong>Here\u2019s what else to watch for when Beyond Meat reports:<\/strong><\/p>\n<p><strong>Earnings: <\/strong>Analysts polled by FactSet are expecting earnings per share of 5 cents, down from 6 cents last year.<\/p>\n<p>Estimize, which crowdsources estimates from sell-side and<br \/>\nbuy-side analysts, hedge-fund managers, executives, academics and others,<br \/>\nexpects EPS of 7 cents.<\/p>\n<p><strong>Revenue: <\/strong>FactSet analysts expect revenue of $137.0 million, up from $92 million last year.<\/p>\n<p>Estimize forecasts revenue of $136.4 million.<\/p>\n<p><strong>Stock price:<\/strong> Beyond Meat shares have more than doubled, up 107.5% for the year to date. <\/p>\n<p>The benchmark S&amp;P 500 index<br \/>\n        SPX,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/210599714\/realtime\" class=\"negative\">-0.02%<\/bg-quote><br \/>\n       is up 8.6% for the period.<\/p>\n<p><strong>Also:<\/strong>  Noodles &amp; Co. CEO says there\u2019s an \u2018opportunity for growth\u2019 as pre-COVID trends accelerate <\/p>\n<p><strong>Other items:<\/strong><\/p>\n<p>-Large food companies like Kellogg Co.<br \/>\n        K,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/209631250\/composite\" class=\"positive\">+0.07%<\/bg-quote><br \/>\n       and Tyson Foods Inc.<br \/>\n        TSN,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/201117502\/composite\" class=\"negative\">-0.65%<\/bg-quote><br \/>\n       are also making a play for plant-based market share.<\/p>\n<p>\u201cWe keep a hold [stock rating] due to weakening trends in<br \/>\nsome key markets\/categories but are optimistic of Kellogg\u2019s long-term growth<br \/>\npotential, especially in nascent categories like plant-based meat where Kellogg\u2019s<br \/>\nIncogmeato brand was launched this quarter under the halo of the well-known<br \/>\nMorningstar Farms brand,\u201d wrote CFRA in a late October note.<\/p>\n<p>CFRA has a $68 price target on Kellogg shares.<\/p>\n<p>Kellogg reported third-quarter earnings last week.<\/p>\n<p><strong>Don\u2019t miss:<\/strong>  Starbucks holiday coffee flavors and cups heading to stores on Friday<\/p>\n<p>-Demand for plant-based foods is expanding to include not<br \/>\njust meat and fish, but plant-based cheese, yogurt, ice cream and butter,<br \/>\naccording to research from ADM, a company that specializing in food<br \/>\ningredients, animal and human nutrition, and other areas of food and farming.<\/p>\n<p>ADM says protein fermentation, 3D printing and other<br \/>\ntechnologies will also play a role in plant-based innovations. <\/p><\/div>\n<\/div><\/div>\n<p><\/p>\n<div class=\"byline article__byline\">\n<p>      <span>By<\/span><\/p>\n<div class=\"author  hasMenu\" data-scrim='{\"type\":\"author\",\"header\":\"Tonya Garcia\",\"subhead\":\"The Wall Street Journal\",\"list\":[]}' itemscope itemprop=\"author\" itemtype=\"http:\/\/schema.org\/Person\">\n<h4 itemprop=\"name\"><span class=\"ez-toc-section\" id=\"Tonya_Garcia\"><\/span>Tonya Garcia<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<\/p><\/div>\n<\/div>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener noreferrer\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more News articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/news\/\" target=\"_blank\" rel=\"noopener noreferrer\">News category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"http:\/\/www.marketwatch.com\/news\/story.asp?guid=%7B21004575-02D4-D4B5-4572-DED55EC7E752%7D&#038;siteid=rss&#038;rss=1\" target=\"_blank\" rel=\"noopener noreferrer\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;# Beyond Meat earnings preview: Competition and pricing could take a toll on margins &#8221; Beyond Meat continues to launch new products and expand distribution, but faces competition. Beyond Meat Beyond Meat Inc. BYND, -0.11% is scheduled to report third-quarter earnings on Monday amid a competitive landscape that seems to grow more crowded by the&#8230;<\/p>\n","protected":false},"author":1,"featured_media":106777,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[70897],"tags":[],"class_list":["post-106776","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/106776","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=106776"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/106776\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/106777"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=106776"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=106776"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=106776"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}