Beyond Meat, the company that makes plant-based meat substitutes, announced it will be selling an additional 3.25 million shares of common stock in the face of growing demand for plant based proteins.
The news comes after the company shared its second quarter financial results, and lower than expected profits sent the stock diving by at least 10% at one point.
Net revenues were pegged at $67.3 million, an increase of roughly 287 per cent over 2nd quarter 2018 which were $17.4 million. For the full year the company is expecting revenue of $240 million according to the Street.com
“We are very pleased with our second quarter results which reflect continued strength across our business as evidenced by new foodservice partnerships, expanded distribution in domestic retail channels, and accelerating expansion in our international markets. We believe our positive momentum continues to demonstrate mainstream consumers’ growing desire for plant-based meat products both domestically and abroad,” says Ethan Brown, Beyond Meat’s president and CEO.
“Whether you believe its shrewd marketing or real substantial demand, Beyond Meat is creating awareness and real sales for the plant protein business,” says Shaun Haney of RealAgriculture.
Even with increased criticism of the highly processed nature of the product, the company is trading at a very high price.
The market was surprised by the announcement of more shares being issued with the IPO being so recent. Beyond Meat traded $12.77 (5.44%) lower by the close on Monday, July 29.
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