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.
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.