Beyond Meat (BYND) Stock: Why It Surged 21.89%

By Amit Chowdhry ● Aug 7, 2022
  • The stock price of Beyond Meat (BYND) surged by 21.89% in the previous trading session. This is why.

Investors responded to the company’s second-quarter results and business update.

Beyond Meat reported a Q2 EPS of ($1.53), which was $0.29 lower than analyst estimates of ($1.24). And the revenue for the quarter was $147 million compared to the consensus estimate of $151.19 million. And Beyond Meat expects FY2022 revenue of between $470 and $520 million compared to a consensus of $559.93 million.

One of the reasons why the stock price likely rallied is due to management’s plan to focus on major cost-cutting initiatives (see quote below). The company also announced a reduction in force affecting approximately 4% of its global workforce. This reduction in force is expected to result in total annualized savings of approximately $8 million, excluding one-time separation costs of approximately $1 million, which the company expects to incur in the third quarter of 2022.

KEY QUOTE:
 “In Q2 2022, we recorded our second largest quarter ever in terms of net revenues even as consumers traded down among proteins in the context of inflationary pressures, and we made solid sequential progress on reducing operating and manufacturing conversion costs. Across the balance of the year, we are tightly focused on intensifying OpEx and manufacturing cost reductions, executing against a series of planned market activities for our global strategic partners, and strengthening our retail business through core support and the introduction of one of our best innovations to date. Through these and other measures, we are confident we will emerge from the current economic climate leaner and stronger, and well positioned for our next chapter of growth.”

— Beyond Meat President and CEO Ethan Brown