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Why Beyond Meat Stock Jumped on Friday

By Joe Tenebruso - Updated May 8, 2020 at 5:17PM

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The plant-based food provider's sales are growing rapidly during the coronavirus crisis.

What happened 

Shares of Beyond Meat (BYND 6.03%) climbed nearly 9% on Friday, continuing their sizzling gains since the plant-based meat substitute company released its earnings report on Tuesday.

So what

Despite the affects of the COVID-19 pandemic, which forced many restaurants to close, Beyond Meat's net revenue soared 141% year over year to $97.1 million in the first quarter. 

Beyond Meat also delivered an unexpected profit. Net income came in at $1.8 million, or $0.03 per share, versus a loss of $6.6 million, or $0.95 per share, in the prior-year period. Wall Street had expected a loss of $0.06 per share. 

Beyond Meat's Beyond Burger

The Beyond Burger. Image source: Beyond Meat.

Now what

Sales to grocery stores are helping Beyond Meat offset lost sales to restaurants. And now, as states begin to relax stay-at-home orders and reopen their economies, investors are hopeful that Beyond Meat's restaurant-based sales will begin to rebound.

Moreover, supply chain disruptions in the meat industry could lead more major food retailers to strike deals with Beyond Meat. The plant-based food producer announced a blockbuster deal with Starbucks in April that will bring its products to the coffee titan's stores in China. Analysts believe more deals could be on the horizon, including a potential partnership with McDonald's.

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Beyond Meat Stock Quote
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BYND
$29.03 (6.03%) $1.65

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