Beyond Meat Inc. (NASDAQ:BYND) appears to be taking off for the stratosphere – again – on word of through-the-roof sales.
The El Segundo, Calif.-based faux meat-maker’s shares had already quadrupled since its May 1 initial public offering before jumping as much as 26% in late trading Thursday, after its first quarterly report came out.
What captured investors’ attention was the forecast that sales would exceed $210 million U.S. this year, beating analysts’ estimate for about $205 million U.S.
Sales growth was driven by higher demand for the Beyond Burger and an increase in the number of retailers and restaurants that sell Beyond Meat's products, which include meatless sausage and beef crumbles.
To put that into perspective, revenue last year was all of $88 million U.S.
This kind of wild success out of the gate — reminiscent of the marijuana industry and some of its stratospheric valuations — illustrates Wall Street’s hunger for markets that aren’t yet completely mapped out.
The excitement here is about the clear increase in demand for foods that resemble meat but aren’t made out of it. The El Segundo, California-based company is benefiting from being one of the first producers on the scene.
And of course it now faces the challenge of backing up the optimistic projections, as the competition builds.
Sales are growing as people seek to cut down on meat for health and environmental reasons. The market for meat alternatives could reach approximately $140 billion U.S. and take 10% of the $1.4-trillion U.S. meat market, according to research from Barclays.
Shares zoomed $28.91, or 29.1%, to $128.41
Related Stories
