Beyond Meat Tumbles On Big Miss, Then Surges On Strategic Partnerships With McDonald's, Yum!

After a painful day for everyone in the markets, Beyond Meat investors, both longs and shorts, suffered a rollercoaster ride after hours when first BYND tumbled after the company's latest disappointing results spooked bulls, only to see the stock reverse and spike when the company announced a strategic partnership with both McDonald's and Yum Brands.

First, here are the disappointing numbers the company reported for Q4:

  • Net revenue $101.9 million, missing the estimate of $103.6 million (of this U.S. net revenue was $77.4 million, and international revenue $24.5 million)
  • Adjusted loss per share 34c, missing the estimate loss/share 14c (range loss/share 28c to EPS 2.0c)
  • Adjusted Ebitda loss $9.5 million, missing the estimate profit $0.87 million
  • Gross margin 24.9%, missing estimate 31.0%
  • Cash and cash equivalents $159.1 million, missing the estimate $223.6 million

And then, the proverbial cherry on top, the company advised investors that "given that the ongoing evolution of consumer demand patterns across retail and foodservice channels has significantly increased the difficulty in forecasting the Company's customer demand levels, management will not be providing 2021 guidance until further notice."

The initial news of the company's ghastly earnings - and guidance pull - sent the stock plunging as much as $20, down to $127.5 after hours. However, the stock then promptly reversed when the company surprised bears with two new strategic partnerships moments after reporting earnings, one with McDonald's and another with Yum! Brands. Here are some more details on the McDonald's deal:

  • Beyond Meat today announced the establishment of a three-year global strategic agreement with McDonald’s Corporation. As part of the agreement, Beyond Meat® will be McDonald’s preferred supplier for the patty in the McPlant®, a new plant-based burger being tested in select McDonald’s markets globally. In addition, Beyond Meat and McDonald’s will explore co-developing other plant-based menu items – like plant-based options for chicken, pork and egg – as part of McDonald’s broader McPlant platform.
  • The agreement will bring together McDonald’s iconic global brand with Beyond Meat's leading expertise in plant-based protein development to create and market innovative new plant-based menu offerings. This announcement further solidifies the relationship between McDonald’s and Beyond Meat, which began in 2019 with the Canadian test of a sandwich made with Beyond Meat’s plant-based patty.
  • “Our new McPlant platform is all about giving customers more choices when they visit McDonald’s,” said Francesca DeBiase, McDonald’s Executive Vice President and Chief Supply Chain Officer. “We’re excited to work with Beyond Meat to drive innovation in this space, and entering into this strategic agreement is an important step on our journey to bring delicious, high quality, plant-based menu items to our customers.”
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