-=Beyond Meat (BYND) reported earnings on Tue 4 May 20 (a/h)

Beyond Meat beats by $0.11, beats on revs, suspends 2020 outlook

Reports Q1 (Mar) earnings of $0.03 per share, $0.11 better than the S&P Capital IQ Consensus of ($0.08); revenues rose 141.5% year/year to $97.1 mln vs the $87.1 mln S&P Capital IQ Consensus.

Growth in net revenues was primarily due to an increase in volume sold, partially offset by lower net price per pound. Growth in volume sold was driven mainly by expansion in the number of distribution points both domestically and abroad, higher sales velocities at existing retail customers, and contribution from new products introduced subsequent to the first quarter of 2019.

Adjusted EBITDA was $12.7 million compared to an Adjusted EBITDA loss of $2.1 million in the year-ago period.

Suspends 2020 Outlook: The company continues to expect to benefit from food-at-home consumer demand in its retail channel, however, given the ongoing uncertainty related to the COVID-19 pandemic, including the magnitude and duration of the impact to the foodservice channel, in particular, the company is suspending its 2020 outlook previously provided on February 27, 2020 until further notice.

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Beyond Meat said it would launch an aggressive discounting onslaught over the summer, in an effort to boost sales while shortages drive prices of real meat higher. Beyond Meat stock jumped Wednesday.

CEO Ethan Brown announced the plans during the company's conference call to discuss first-quarter earnings, which beat expectations. But the company also said that a test of a sandwich patty at McDonald's (MCD) — a potentially huge customer — had ended.

As coronavirus outbreaks shutter large meat processing plants in the U.S., thinning out supply in the process, Beyond Meat said it would offer bigger package sizes in grocery stores, with 10 to 12 burgers at a time. And as the coronavirus pandemic constricts restaurant service, management said it was redirecting resources toward its retail business.

Beyond Meat said in March that "this is a time of hypergrowth," as it forges ahead with production plans in Asia despite worries about the coronavirus.

The company's products last month launched in China, via a collaboration with Starbucks (SBUX) that put Beyond Meat on the coffee chain's menus. Beyond Meat has made similar tie-ups with other restaurants.