Beyond Meat Inc. reported its first quarterly profit on Oct. 28, but Chief Executive Ethan Brown is thinking bigger.
Just six months after Brown’s 10-year-old company recorded one of 2019’s hottest initial public offerings, the Beyond Meat founder has been drawing comparisons between his business and a couple of other pioneers that upended markets — Tesla Inc. and Amazon.com Inc.
Brown even recently hired former Tesla and Amazon exec Sanjay Shah as the El Segundo-based company’s chief operating officer to help realize Brown’s global ambitions.
“Why did Tesla have the impact it’s had on the automotive industry when General Motors and Ford and everybody else could see it coming?” Brown asked investors rhetorically during Beyond Meat’s Oct. 28 earnings call. “There’s a playbook here, and we’re exploiting every angle that we can.”
The way Brown sees it, markets knew about the threat posed by companies like Tesla and Amazon, but competitors weren’t quick or focused enough to fend them off.
What differentiated those companies, he believes, was the risk they were willing to take and their level of innovation. By the time competitors swept in, both companies dominated their industries.
Brown contends that Beyond Meat, which is facing increasing competition from startups as well as established industry players, has the same DNA.
“If you’re an incumbent presence that wants to come in and maybe replicate what we’re doing,” Brown said, “you’ll be chasing a ghost because we are moving so quickly.”
For the third quarter, Beyond Meat revenue jumped 250% to $92 million, up from $26.3 million the in the same period a year earlier. About 45% of sales, or roughly $41.5 million, came from restaurants and food service establishments as Beyond Meat secured new deals with KFC Corp., McDonald’s Corp., Subway and Denny’s Corp. — all of which are testing Beyond Meat products.
The company’s solid earnings report is backed by a healthier balance sheet. It logged $4.1 million in income for the third quarter compared to a $9.3 million loss in the second quarter. The plant-based food-maker also raised year-end revenue projections to between $265 million and $275 million, up from a previously announced $240 million.
Despite the strong quarter, Beyond Meat shares plummeted more than 20% the day after the earnings report. Wall Street was expecting a sell-off from early investors whose lock-up period expired, setting free about three-quarters of the company’s shares.
But Brown, who is the company’s fifth- largest shareholder, told several media outlets he wouldn’t sell his position. The anticipated massive sell-off didn’t transpire.
For reprint and licensing requests for this article, CLICK HERE.
Stories You May Also Be Interested In
- Beyond Meat Turns a Profit, Raises Growth Forecast
- Investor Sell-Off Takes a Bite Out of Beyond Meat
- Beyond Meat Loses Sizzle
- Beyond Meat Q1 Performance Beats Analyst Expectations
- Investors Lose Taste for Beyond Meat
- Beyond Meat Shares Soar 163% on First Day of Trading
- Fake Beef Firm Plants Products
- Beyond Meat Seeks $100M in Initial Offering