The Biggest Problem With Beyond Meat's Earnings
Beyond Meat (NASDAQ: BYND), known for its processed meat substitutes made from pea protein, reported some impressive growth in the fourth quarter. Total revenue more than tripled to $98.5 million from the prior-year period, with sales to both retailers and restaurants up big on a year-over-year basis.
That all sounds great. But hidden behind the headline numbers was a big crack in the growth story. Compared with the third quarter, sales to retail stores were down quite a bit. There's no reason to believe sales of meat analogues are seasonal, and overall demand for the category is growing. The most logical conclusion is that competition is starting to eat into Beyond Meat's sales in the grocery aisle.
Image source: Beyond Meat.
Source Fool.com
