Beyond Meat may have some high profile customers including McDonald's, Denny's and Dunkin Donuts to name a few, but investors remain skeptical over a jump in spending even after the food maker reported better-than-expected results.
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The company's operating expenses jumped more than 123 percent to $29 million compared to $13 million in the year-ago period clouding what was an otherwise strong quarter.
Not only did the maker of plant-based meats turn a profit of $0.06 cents a share during the quarter, nearly double Refinitiv estimates, it also did the same for revenue pulling in $92 million vs. $82 million and the company boosted its full-year revenue forecasts to between $265 to $275 million.
Since going public earlier this year, Beyond Meat shares have traded as high as $239 per share and are now hovering around the $98 level as of late Monday.
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“We remain pleased with our continued strong sales growth trajectory and are equally pleased with our sequential improvement in profitability in the third quarter. Our 35.6 percent gross margin in the quarter is a validation of our team’s ongoing efforts to improve our operating efficiency and is a critical enabler of greater strategic flexibility in the future" said Chief Financial Officer and Treasurer Mark Nelson in the earnings release.
The space for plant-based products is exploding and becoming more competitive as the likes of rivals such as Impossible Foods chase the same growth options.
“We remain focused on expanding our distribution footprint, both domestically and abroad, building our brand, introducing new innovative products into the marketplace, and bolstering our infrastructure and internal capabilities to fuel our future growth" Ethan Brown, Beyond Meat’s president and chief executive officer, said in the earnings release.
Just last week, Impossible Foods confirmed to FOX Business it filed documentation to expand in some of the same markets Beyond Meat is chasing.
In a statement the company said:
"Impossible Foods confirms that it has filed paperwork with the Parma, Italy-based European Food Safety Authority, the agency of the European Union that provides independent scientific advice regarding the food chain. Impossible Foods' intention is to sell plant-based meat in every single region of the world. As always, the company will meet or exceed all food-safety regulations in every single region of the world, including Europe. The Redwood City, Calif.-based company does not have additional details at this time."