USA, Los Angeles. For a year now, revenues have been stagnating at the manufacturer of vegan meat alternatives. New production facilities are intended to boost business.
Beyond Meat closed the fourth quarter of 2020 with a disappointing result. Compared to the same period last year, revenues rose just 3.5% to $109.9 mill. In the second quarter of 2020 (April to June), the manufacturer of vegan burger patties had managed to increase sales to more than $100 mill. for the first time. $113.3 mill. meant a year-on-year increase of 69%. For the fourth quarter of 2020, analysts had expected sales of $104.8 mill. The loss was higher than expected at $25.1 mill.
In the stock market, Beyond Meat was not punished for the weak balance sheet. Investors, on the other hand, were pleased with news that Beyond Meat had signed a multi-year supply agreement with McDonald's and Yum Brands, which the company also reported yesterday. Beyond shares initially rose 18% in after-hours trading, only to fall back later.
Beyond Meat, like many other food companies, is suffering from declining foodservice sales. Because of the Corona pandemic, foodservice operations worldwide are facing cutbacks. However, management made a successful effort to expand its reach. In the US, the meat-free burgers are now offered in almost all major supermarket chains. In addition, the company opened its own online store last fall.
International expansion was also pushed in 2020. This year, for example, a subsidiary in China is to start producing products for the domestic market. A factory is currently under construction in Enschede (Netherlands), from which the European market will be supplied.