Plant-based bae... It's Beyond Meat. And while the biggest new stock of 2019 was up 794% from its IPO price on Monday, shares dropped 14% after its 2nd ever earnings report was released after-hours. It made a lot bigger loss than investors expected. But Beyond was focused on the positives on its plate:
- Sales: They nearly quadrupled to $67M.
- Partnerships: Breakfast sammies with Dunkin', burgers with Tim Hortons, tacos with Del Taco, and meal kits with Blue Apron.
- Pipeline: Pea-based bacon and steak are in the works.
- Projections: It upped its sales forecasts for this year because grill season is happening.
1 problem... Beyond's giving away more Beyond. Shares plummeted as soon as execs announced they would issue more shares of the company. Like an Initial Public Offering, Beyond is raising new $$$ for the biz by selling new shares — it's just not "initial" anymore. This "secondary" offering dilutes the value of existing shareholders' stock, and they're not thrilled CEO Ethan Brown and other big shareholders are selling stock in this offering too.
Nice problem to have... Beyond is strategically issuing new shares while its stock price is high — short-term, it hurts the price, but Beyond thinks it'll create long-term value. It'll spend the new money on new factories so it can access the 98% of plant-based meat-eaters who also buy meat — "The Reducetarians."