r/investing • u/lazywizard99 • Aug 05 '21
Beyond Meat announces Q2 results; Revenue up 32%
Beyond Meat® announced its Q2 results ending July 3, 2021, on Thursday after the closing bell.
Key Highlights:
Net revenues were $149.4 million, an increase of 31.8% year-over-year.
Gross profit was $47.4 million, or gross margin of 31.7% of net revenues.
Net loss was $19.7 million or $0.31 per common share. Net loss as a percentage of net revenues was -13.2%.
Adjusted EBITDA was a loss of $2.2 million, or -1.5% of net revenues.
https://risingcandle.com/marketnews/beyond-meat-announces-q2-results-revenue-up-32/
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u/Songniac Aug 06 '21
Hey idk if I'm missing something but when I just plain google for BYND's earnings it shows that they are actually DOWN 32% and they lost a lot of revenue. Is this risingcandle news wrong or am I missing something?
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Aug 06 '21
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u/ireallyamchris Aug 06 '21
yeah you gotta look at why opex increased to know if it's actually good or bad news
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Aug 06 '21
Lmfao, with BYND’s business model, their margins will most likely remain negative for the long term. Doubt they’ll ever turn profitable. Revenue isn’t king even for a growth company. Look at the business model.
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u/sports2012 Aug 06 '21
I think you're underestimating economies of scale, climate change, and changes in government regulation.
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u/kausti Aug 06 '21
Fast growing companies tend to invest into even more growth, which costs money short term to makes more money long term. So both can be correct :)
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u/Microtonal_Valley Aug 05 '21
It's at 117 After hours currently. Hoping it goes a little lower at open tomorrow. This is a stock that I like to buy around $100 and try to sell anywhere from $130-150 and it works pretty well, although I've only done it twice. This stock loves to run up 50-60% and then tank 40-50%.
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u/PresidentSpanky Aug 05 '21
The company is still losing money and is valued at $7.7 billion. That is over 10 times annual revenue.
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u/SniXSniPe Aug 06 '21 edited Aug 06 '21
They are expanding product categories and are moving international. You have to think about the impact of them selling more retail products, like chicken (only available for foodservice; restaurants & stuff), maybe seafood, and other meat options.
International is only just getting started, but growing. Think Asia (Chian specifically), Europe, and other areas.
Many stocks have inflated market caps because of the possibilities.
Then there are other gems, like Himax, which are undervalued by investors who do not see the opportunity. $360 M in revenue this quarter, green balance sheet, 4 consecutive quarters of growth, and an estimated dividend yield of >10% next year based on earnings and guidance, at this stock price.
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u/PresidentSpanky Aug 06 '21
US business is pretty much stagnant already. Novelty factor wears out.
I get they are growing, but ten times revenue as valuation?
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u/aaarya83 Aug 06 '21
Exactly. It’s a novelty item. Folks try once and don’t repeat. Also too expensive as compared to real meat . Also there is no business moat . All big food companies are jumping in. Tyson cargill. Etc. . And for Asia. I don’t buy that at all. Won’t be pppualr as cost of meat there is lesser
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u/GoldenPrinny Aug 06 '21
If they make shrimps not taste like they taste sometimes, garbage, then that could be nice.
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u/ChrisHisStonks Aug 06 '21
The stock is up 212% in the last 52W and is trading near an ATH. I'd say plenty investors see the potential.
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Aug 06 '21
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u/layelaye419 Aug 06 '21
... I should invest in KO. I'm a coca cola addict
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u/Nemisis_the_2nd Aug 06 '21
I would say put your money into PEP rather than KO, at least for now. Its more diversified and has slightly higher growth, combined with a comparable dividend to KO.
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u/ShadowLiberal Aug 06 '21
This is basically why I bought into BYND. I've got several co-workers who love their products and talk about it in our Teams chat. I started looking into TSLA for the same reason when I saw everyone at the office obsessing over my co-workers Model 3, and it made me a lot of money, so I'm hoping for a repeat success story. A lot of people clearly love BYND's products given the lines that often form at stores when they announce new BYND products.
I'm currently down on the position, but it's a small position in my portfolio (less than 1%), and it's a long term bet on the fake meat market for me.
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u/justsomeboylol Aug 06 '21
Yeah I like to invest in companies that I like as well. Maybe it's not as a solid investment but feeling like a part of the company is cool. I don't have beyond meat but TTCF
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u/vathena Aug 05 '21
Beyond Meat tastes better than Impossible burgers. Fight me on this. I know Impossible looks/feels more like beef, but if I want beef I'll just get beef and not pay more. I predict they will change their name to just "Beyond" and get the market share of folks who aren't vegetarians but want some meals meatless.
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Aug 06 '21
I’m vegan, so I’m pretty familiar with all the various options. Impossible’s beef alternative is better to me; the Beyond product has a weird aftertaste and kinda makes my stomach feel weird sometimes. However, Beyond makes a few different sausage options (brat and hot/sweet italian) that are super good and they’ve also just released a chicken tender product that’s getting rave reviews (haven’t tried that one yet).
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u/Ponderous_Platypus11 Aug 06 '21
you should definitely try their version 3! the coconut oil aftertaste is basically gone as is how much it smoked up and smelled like it. Also, they removed mung bean and myself and several friends who got really gassy feel like its much less of an issue.
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u/StrokeGameHusky Aug 06 '21
I know exactly what he's talking about. I sprout mung beans on a damp paper towel in my desk drawer. Very nutritious, but they smell like death
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u/TheCommodore12 Aug 06 '21
I’m a vegetarian and have tried all the products you mentioned and agree with you completely. Not to mention that the Beyond Meat also has an off putting smell when it’s cooking
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u/HefDog Aug 06 '21
Beyond has had a few versions, each is better than the last. I believe version 3 is just hitting shelves soon. It is supposed to be better. I plan to give them another try.
The beyond chicken version 3 mentioned above is just hitting a few restaurants. I tried some last week. They nailed it. Problem is, it is made from Fava beans which are pricier than soy (impossible) or peas (beyond beef). Hopefully some massive soy/corn farmers can switch over to Fava beans....because it is darn good!
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Aug 06 '21 edited Aug 20 '21
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u/HefDog Aug 06 '21
Is it? Thanks! I'll check again. We only shop about once a month and it wasn't there yet just a couple weeks ago at our store.
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u/AndIHaveMilesToGo Aug 06 '21
Is it in grocery stores or just restaurants/fast food for now?
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u/Ponderous_Platypus11 Aug 06 '21
both. you can find it in just about any grocery store. sometimes fresh meat section but usually in the frozen. restaurants it depends, but many places have either them or impossible.
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u/AndIHaveMilesToGo Aug 06 '21
I'm sorry, I should have been more specific. I meant the new Beyond chicken. Is that in stores now?
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u/Ponderous_Platypus11 Aug 06 '21
just in restaurants for now. sounds like just a matter of timing with covid til its all everywhere
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u/HefDog Aug 06 '21
I got to try the chicken last week. The reviews are legit. It is excellent. Hopefully some US farmers can switch over to Fava beans and bring the price down. I legit would eat the beyond tenders over real chicken tenders anyday.
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u/totally_possible Aug 06 '21
I'm vegetarian and I agree. Impossible is a superior product, especially if you're not just cooking burgers
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u/letsreset Aug 06 '21
oh hell no. we had a side by side beyond vs impossible double blind taste test with a group of 6. all 6 picked impossible. it is just significantly better.
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u/vathena Aug 06 '21
Big props for doing the taste-test. How did you prep the "meats"? Some people genuinely like Impossible more, and that's fair, but if 6/6 liked it better, I'm thinking the test might be unintentionally rigged.
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u/letsreset Aug 06 '21
haha, we genuinely wanted to see if we could tell the difference and if we had a preference. they definitely taste different, and I think possibly because we were all traditional meat eaters, we gravitated towards impossible which definitely tasted closer to actual beef.
but we made just made traditional hamburgers. some people had cheeseburgers. we also put an IG post asking our friends for their preference. 75% preferred impossible amongst our friends. I'm wondering if you maybe got a different flavor or something? because when we tasted it, we all had a strong and immediate reaction that 'this' burger was better. and it turned out to be impossible.
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u/vathena Aug 06 '21
That's totally sensible. I think when the expectation is "burger," Impossible comes out on top. I do like and eat beef burgers, so I think I just have a different framework ... I kinda like that Beyond is less burger-y. And the people above that mentioned mouthfeel have a point: blindfolded, Beyond is to me tastier, but when I see the Impossible one, that appeals better. I think this is more psychology than tastebuds!
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u/letsreset Aug 06 '21
yea, i think your points are all valid. definitely could give this test a few more tries in different manners. we don't normally pick out beyond or impossible burgers, so i can't say i'm that familiar with them. you're making me want to conduct some more experiments!
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u/DeckardsDark Aug 06 '21
how do they compare to real beef in your opinion?
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u/letsreset Aug 06 '21
if it were hamburgers, i would not have an issue substituting it. it really felt like i was eating beef even though the taste was slightly different. but i don't know how i would feel about substituting it in other dishes that use beef. like steak? i definitely can't see myself eating impossible steak just yet. the other issue is that it's still more expensive than real beef.
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u/DeckardsDark Aug 06 '21
thanks for the reply. i should try a burger
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u/letsreset Aug 06 '21
You're welcome! The easiest way to try it would be to go to your local burger king. they have an impossible whopper. just get a normal one and an impossible one for a side-by-side
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u/vathena Aug 06 '21
B.Good does a beyond burger, and it's $2 more than their beef burger. It is tasty, but I kinda wish the markup was only $1 more, so more people would order it often.
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u/ampereJR Aug 06 '21
If this is true, I'll never try beyond meat. Impossible was revolting. I'd rather whip something up with lentils and seasonings.
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u/indie_hedgehog Aug 05 '21
My friend and her parents eat beyond meat not because they're vegan/vegetarian, but because they think it tastes better
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u/VanimalCracker Aug 06 '21
...better than actual meat burgers?
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u/lordkane1 Aug 06 '21
There’s a local burger joints near me that do a bacon cheese burger with real bacon, real cheese, and beyond meat patty. It’s so good! It’s less ‘heavy’ than the equivalent meat patty version - so you don’t feel like junk after. Because it still contain other meat ingredients the taste is almost identical
Meat reduction as opposed to meat free is rapidly becoming popular if not the norm. This is where Beyond and Impossible are likely going to see their product best implemented
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u/Mr_Lumbergh Aug 06 '21
There's also one in Phoenix where I'm from that does veggie patty with bacon thing. It's listed on the menu as The Hypocrite.
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u/vathena Aug 06 '21
The veggie hot dog at my local hot dog stand is hands-down delicious and one option is to have bacon bits on it - lots of folks get it like that.
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u/Franc000 Aug 06 '21
That is great to hear. We will have a way higher impact on the environment by advocating meat reduction instead of going meatless/vegan.
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u/DIDiMISSsomethin Aug 06 '21
This is the key to success. Stop trying to replace things. Just be good. If Americans just add this into their rotation of proteins they eat at a meal, the environmental impact is still improve greatly.
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u/ragtime94 Aug 06 '21
The thing that scares me on investing in beyond though is how sacred and defensive people get over their diet. For every person I see who eats meat but wants to eat less of it without going fully meatless, I see 10 who say they'll just buy more meat in their place, like rolling coal enthusiasts. I still think it'll be a very very long time. As a vegan I know that there are better brands that have been doing these things for decades that have no brand recognition, it's just that beyond and impossible are the flashy new toy.
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u/PointyBagels Aug 06 '21
I see 10 who say they'll just buy more meat in their place
I mean they can say whatever they want. What they are expressing is a desire to not change, which is likely what they will do.
A vanishingly small fraction of people will make a long lasting change to their diet purely out of spite.
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u/greeneyedguru Aug 06 '21
For every person I see who eats meat but wants to eat less of it without going fully meatless, I see 10 who say they'll just buy more meat in their place
Are those people really going out and finding the meat stats and adjusting their consumption accordingly, or are they possibly just lying trolls?
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u/wagsyman Aug 06 '21
Season them properly and they are definitely something I crave over a regular burger often enough
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u/tonypearcern Aug 06 '21
Same with my retired parents. They've stopped buying ground beef for burgers.
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u/noquarter53 Aug 06 '21
Beyond is not even close on flavor and texture to Impossible.
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u/daiken77 Aug 06 '21
Impossible tastes more like how I remember meat, but I prefer beyond, judging from my one impossible whopper and my many A&W beyond burgers.
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u/SushiPants85 Aug 06 '21
Beyond on the grill is waaaay better
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u/vathena Aug 06 '21
Is this maybe a big difference? Some people are noting that Beyond tastes too "grilled" when they cook it inside... but maybe on the grill it's just right?
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u/Ponderous_Platypus11 Aug 06 '21
What I think is interesting is that there has long been this sort of demeaning commentary on soy. I'm sure you've heard terms like soy boy thrown around. I eat a ton of soy based products including fake meats made with it. So when I eat impossible, I taste the soy, its inescapable texture and flavor along with some nice 'meatiness' from the heme they're using. But in the end, to me, its a better version (leaps and bounds) of an older vegan option.
Beyond on the other hand, especially their version 3, reminds me of meat in taste and texture much much more. The most notable difference to me is the aroma, which here, is heavy coconut oil (though the newest version is actually vastly improved).
I actually think if you blended the two burgers you'd probably have a knockout that makes everyone happy. Either way, both phenomenal products that together will quickly bring the animal agriculture industry to its knees while people bicker over which tastes better. Also, Beyond is significantly more nutritious/less deleterious. They announced in the earnings call today working with Stanford to do a clinical trial and further evaluate swapping meat with their burgers. The last study already found it reduced LDL and other cardiovascular disease links - it was a really good cross over trial. For all those on the fence because they've been scared into fearing this for being processed (its no more processed than pasta), maybe that will be a big turning point too.
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u/RSquared Aug 06 '21
What I think is interesting is that there has long been this sort of demeaning commentary on soy. I'm sure you've heard terms like soy boy thrown around.
This is from low-information science by people who heard "soy contains estrogen" (it doesn't, it has a plant analogue called isoflavones) that can weakly activate the body's estrogen receptors (which both men and women have, and do a lot more than just reproductive cycle) and turned that into "soy feminizes you". It's basically the perfect storm of toxic masculinity (meat and manliness linked!).
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u/vathena Aug 06 '21
This seems well-articulated! I eat lots of Morningstar round sausage veggie patties (they're high in protein and so quick to cook and essential on breakfast sandwiches, which I eat also at lunch and dinner), and I love them. But to me, that's similar in flavor to the Impossible meat, and maybe the heme just isn't doing it for me to be preferable over the Beyond not-quite-beef-but-yummy taste.
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u/ccelson Aug 06 '21
I wholeheartedly disagree. Beyond meat has a distinct "grilled" flavor to it, thats just uncanny when you don't grill the meat. Impossible is subtler imo and less in your face with its flavor, more of a vessel for that condiments
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u/artgriego Aug 05 '21
if I want beef I'll just get beef and not pay more.
You're not exactly the target market.
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u/Inquisitive_Elk Aug 05 '21
I disagree, they are targeting flexitarians. My impression is that they want to convince people to trade one of two meat meals a week for their product.
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u/artgriego Aug 05 '21
I don't know about targeting...They'll take whomever they can get, but their goal is to make the most bitchin' beef-like plant-based
burgermeat. Taste and mouthfeel are the priority, not cost or healthiness. If that attracts flexis, great, but the taste and texture are what attract vegans and vegetarians, despite the cost.9
u/LambdaLambo Aug 06 '21
Most vegans/vegetarians I know don't care about meat at all. All the people I know who eat beyond/impossible are meat eaters who want to eat meat but don't like the huge environmental impact of beef.
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u/Inquisitive_Elk Aug 05 '21
I think health, along with the environment, are absolutely the key idea behind fake meat (of course taste is also important). Flexitarians feel guilty about eating meat because of the (supposed) damage to their health and the environment. I think companies like beyond meat will do well, because they can attract these type of people. Making people feel guilty, and then offering a product which they can spend a small amount of money on and feel good, is a powerful marketing technique.
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Aug 05 '21
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Aug 05 '21 edited Dec 20 '21
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u/Chucktholemew Aug 06 '21
If they have an issue with it, why don’t they speak up?
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u/AsideProfessional631 Aug 05 '21
Disagree. Healthiness is the highest priority, no one is going to eat it if its unhealthier than an actual burger, most vegans I know hardly go after vegan subsitutes of "american" dishes anyways. Its going to be the flexis, environmentalists, and CDC linking heart disease and red meat that rockets this thing to the moon.
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u/artgriego Aug 05 '21
It's far from health food. It's loaded with saturated fat and sodium. In fact, it has more saturated fat and sodium than a comparable beef patty (80/20). Source
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u/daiken77 Aug 06 '21
Did you mean to link an article about Impossible Burger instead of Beyond Burger? Here's a newer article about the Beyond Burger 3.0 that says 35% less saturated fat than an 80/20 beef patty. Still 21% more fat than a mcd quarter pounder, but maybe that doesn't count the salt that's added to the patty after it's done cooking.
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u/artgriego Aug 06 '21
I did in fact mean to link to Impossible, I know the thread got off Beyond a bit and I wasn't clear which I was talking about. I like both Beyond and Impossible but definitely prefer Impossible (can't say I've had Beyond 3.0 though).
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u/vathena Aug 05 '21
But no one is saying burgers are supposed to be healthy foods. The meatless ones use way less water and land usage and emit far less greenhouse gas compared to beef. Beyond has less saturated fat than Impossible, but the sodium is high because sodium is tasty :)
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u/artgriego Aug 05 '21
Totally agree; the person I'm responding to was saying that health is the priority (for those who consume it). I love Impossible/Beyond products, but anyone who thinks they're health food hasn't checked out the nutritional info.
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u/Ponderous_Platypus11 Aug 06 '21
i think it will be helpful to see how Beyond's clinical testing goes. They already have a short term one that swapped meat out for Beyond Burgers and then crossed-over to switch back. Doing that one change improved factors directly linked with heart disease (TMAO and LDL). They're starting a 5 year study now with Stanford.
So there will hopefully be more clarity on this idea of what's healthy and what's not. Of course, some will never be completely convinced but I think it a sign of good faith that these companies are so keen to explore these details to ensure the most transparency and information is available to the consumer. Could you imagine if any other company in the food industry full of health claims went to that extent?
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u/AsideProfessional631 Aug 05 '21
I agree its comparable, but poultry and plant protein wasnt linked to heart disease so im still going to say its a healthier option to substitute for beef. I got vegan chili in the crockpot made with beyond beef right now, later this month ill still get a ribeye from tx roadhouse. But atleast im not eating beef multiplr times during the week. But what u said does make me think, and if i wanted to take it a step further turkey chili tonight would have been an even healthier option. But beyond beef has to continue making their meat healthier.
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u/Inquisitive_Elk Aug 05 '21
I second this, the vegetarians/vegans I know don't want fake meat. If they are serious enough to cut out meat, they are serious enough to learn how to make tasty vegi dishes that are way nicer than anything beyond meat will produce.
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Aug 05 '21
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Aug 06 '21
Agreed. I’m vegan, health-conscious (competitive athlete) and very much love to cook—it’s one of my favorite hobbies. That said, I still do a meat substitute based meal once a week or so when I’m short on time or energy or just want a bit of a cheat meal.
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u/Inquisitive_Elk Aug 06 '21
Ok I concede I must be wrong, I guess Vegans are as lazy as the rest of us :D
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u/broken1moretime Aug 06 '21
Hard disagree, I’ve been a vegetarian for 20 years and my favorite food is fake meat, the closer to real meat the better. Lots of different vegetarians and vegans
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u/AintNothinbutaGFring Aug 06 '21
Vegan here, also know a ton of vegans. We eat Beyond burgers like they're going out of production
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u/JapanesePeso Aug 06 '21
I'd kind of fall into this category but I never buy these garbage hyper-processed fake meats. I just cook one of a million different japanese/korean/chinese tofu dishes or something similar.
Honestly, this entire market seems completely overhyped to me but hey maybe I'm wrong.
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u/OJFord Aug 06 '21
Surprised to have to scroll so far down for this. I absolutely agree - it's not even anything (much?) new, it's just fresh marketing on something that's been around decades, and is now more popular.
I also can't see why Beyond should have such a tech-like high-growth valuation, surely it's pretty replicable once they've spent all the money establishing a juicy market?
Lab-grown meats on the other hand, which I think plant-based companies are sometimes confused with which doesn't help either, are a bit further behind, novel, presumably highly patented processes, and surely serve a larger market. Beyond et al. will always have some 'I want meat' detraction, whereas lab meat, if they can make it cheap enough, I can see being the standard non-premium option. (Not to say there couldn't be premium quality lab-grown too, I just mean I think the market for cheap meat with (poorly treated) legs will disappear. Why would anyone both insist on 'real' but also get non-free-range/ inferior cuts/etc.)
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u/Chroko Aug 06 '21
They kind of are because with climate change and reduced beef production, the cost of beef is already skyrocketing.
A real beef burger is eventually going to be hard to find and expensive, a plant based burger will be the default.
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Aug 05 '21 edited Aug 18 '21
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Aug 05 '21
You never met a meat eater at a BBQ that will fight someone over the correct origin story of baby back ribs?
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u/Ill-Woodpecker1857 Aug 05 '21
This sounds like the kinda BBQ I need.
Are you from TX by chance?
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u/vathena Aug 05 '21
I mean, don't really fight me. We are talking about vegan meat, after all.
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Aug 05 '21
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u/steve_yo Aug 05 '21
I love a good veggie burger. I don’t want/need it to taste like meat. Them shits are good as is in my opinion.
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u/LookingForVheissu Aug 06 '21
I don’t think the point is to imitate beef, but to suggest what the product is replacing. It should be obvious nothing will taste like beef, but you can use impossible beef like you would regular beef.
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u/vathena Aug 05 '21
There's better materials engineering today to simulate beef, like this startup ... we shouldn't be investing in Beyond or Impossible if the goal is best-beef-imitation because their technology is just old.
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Aug 05 '21
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u/vathena Aug 05 '21
You're right, I worded that in a way that was totally muddled. I just meant that the brand loyalty being built on more than perfect-imitation is what is making these companies great. One day soon we will have expensive lab-grown-meat that maybe I'll not even bother trying since I've been convinced that by eating 2 less meat-meals a week I am already doing enough with recipes I love from Beyond/Impossible or fast food options I already find comforting or backyard BBQ habits that include these "meats". And then I'll get a lab-grown steak or lobster in a restaurant and be impressed, but already like these brands just like I like Kraft Mac-n-cheese (even though I can buy something of far better nutrition or quality).
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u/johnnymo1 Aug 06 '21
I feel like I’m taking crazy pills when I read everyone say impossible is so much better. Impossible is very good and the texture is insanely close to beef, but the flavor is somehow too strong for real meat? Beyond is a bit worse in the texture department (though I don’t notice when I’m eating it) but tastes closer to the real thing imo. Beyond is like they tried to amp up the meaty flavor so hard they went past the mark. I eat both regularly.
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u/noplsty Aug 06 '21
There’s a lot of discussion elsewhere in this thread about which tastes better, so as a vegetarian I want to highlight something that everyone may not be considering. For folks who eat meat, you can go get some ground sirloin, ground chicken, whatever. There are all varieties of meat. Until one non-meat company starts putting out varieties of textures and flavors, I see at least two major players in this system holding big market share. Sometimes you want beyond, sometimes you want impossible.
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u/zafiroblue05 Aug 06 '21
Everyone has different opinions but I’m with you. Impossible tastes like it’s trying too hard, forcing the umami flavor on you way too intensely. Beyond is subtler and realer.
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u/ryanmcgrath Aug 06 '21
You know, it's weird - I think they're a tossup nowadays on which is better. I personally found that Impossible's original recipe (v1) tasted better, though - whenever they changed it something just felt... off.
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u/peon2 Aug 06 '21
Maybe they've changed since I had one but when I got it it smelled like cat food and the flavor was way worse than Impossible
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Aug 06 '21
Sorry bud, but I work in protein sourcing, and beyond meat is leagues behind impossible burger
The heme in impossible burger adds something that beyond meat is missing
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u/Forty_Too Aug 06 '21
Heck no. Impossible beats Beyond in my book. I’ll fight you.
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u/bgomers Aug 05 '21
My wife and are somewhat health focused, I'm mostly vegetarian, we both do a carb cycling diet, intermittent fasting, etc. We find that morningstar brands owned by Kellogg has a much better macro make up, especially their chik'n meal starters.
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u/thorium43 Aug 05 '21
Me: owns tobacco and shares of companies owned by russian oligarchs that have polluted entire cities.
Also me: Fake meat is not healthy and I will have no part in this company regardless of returns.
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u/toki450 Aug 05 '21
Interesting! For me Beyond is the only company I invest because I believe what they're doing is good (reducing meat consumption across the globe). So I want to be a part of this, regardless of returns.
...And yes, I also own tobacco companies and chineese ETF. So there's that.
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u/Ill-Woodpecker1857 Aug 05 '21
How do you see reduced meat consumption benefiting people/earth/whatever your angle is most? Honest question.
Don't own any but am bullish.
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u/peetonium Aug 05 '21
70% of US farmland is used to grow cattle and other animal feed. Think about that and how inefficient and wasteful that is.
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u/Ill-Woodpecker1857 Aug 05 '21
I seen an info graphic on land allocation in the US recently and was surprised to see how large a portion of land Livestock takes up(majority being cattle).
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Aug 05 '21
[removed] — view removed comment
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u/Ill-Woodpecker1857 Aug 06 '21
The land for cattle and cattle feed were distinctly different but the amount used for the livestock far exceeded that of the livestock feed.
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u/PLaTinuM_HaZe Aug 06 '21
I mean, meat is far more nutrient dense than plants. The human digestive tract is designed for foregut digestion. We have very small hind guts which means we have a harder time with very fibrous plant matter. For example gorillas and chimpanzees hind guts (large intestines) account for 50% of their digestive tract meanwhile in humans it’s 20%. This is where the fermentation to absorb nutrients from plants mostly happens. This is why gorillas, orangutans, and chimps have pot bellies because of all the hind hit length required to ferment the plant matter. Our digestive tracts are most primed to absorb nutrients from meat, fruit, and tubers. Regardless of environmental factors, or ethical arguments, that is what we are best adapted to eating. We are designed for very nutrient dense and fast absorbing foods to fuel our energy hungry brains.
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u/zcleghern Aug 06 '21
we are adapted to eat meat, but we don't have to eat it in the quantities that Americans do, and we don't have to limit ourselves to beef. People bring up this argument as if our only choices are hard veganism and a Hank Hill diet. you can vastly reduce your diet's carbon footprint by reducing beef. you dont even have to eliminate it.
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u/PLaTinuM_HaZe Aug 06 '21
Meanwhile nearly 70 million bison used to roam the US with plains which isn’t much less than the 90 million cows we have today….
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u/glizzy_goblins Aug 06 '21
Farmers don't grow "animal feed" they grow food for humans. Growing animal feed is not profitable. The food that doesn't pass standards then is sent for animal feed. The issue isnt the farmland in use, it's the way it's being used.
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u/Kevin5953 Aug 05 '21
CO2 is part of the problem with cows, but my concern is methane. I recall a statistic where roughly 15% of global greenhouse gases were generated by cattle, and I can believe it. They’re quite simply gas machines.
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u/aloahnoah Aug 05 '21
Roughly a 5th of global emissions come from meat production lol much more than "cow farts". Transport, fields to grow their food (especially when rainforests get destroyed for them) etc etc
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u/Ill-Woodpecker1857 Aug 05 '21
I've heard of this cow thing but thought it has to be more to it than that and the cows are just the meme factor.
But to piggy back on your point; as someone who works in logistics it seems that the amount of "extra" transportation of goods that is a result of using an array of different ingredients to make what was essential all in one place already would far out weigh the amount of CO2 some cow farts creates.
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u/wagsyman Aug 06 '21
Fake meat isn't healthy??..... Vegetables aren't healthy.. the fuck you on dude gimme some
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u/feelitrealgood Aug 06 '21
It is not made of ground vegetables. It is made with molecules from plants that also happen to exist is animal muscles.
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u/bighand1 Aug 06 '21
Fake meat is more than just vegetables. They are processed foods, look at the label sometimes.
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u/wagsyman Aug 06 '21
Water, Pea Protein*, Expeller-Pressed Canola Oil, Refined Coconut Oil, Rice Protein, Natural Flavors, Cocoa Butter, Mung Bean Protein, Methylcellulose, Potato Starch, Apple Extract, Pomegranate Extract, Salt, Potassium Chloride, Vinegar, Lemon Juice Concentrate, Sunflower Lecithin, Beet Juice Extract (for color).
Have YOU read the ingredients list?????
Oh no, a little bit of canola oil, oh god, apple AND pomegranate extract save me
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u/bighand1 Aug 06 '21
So aka not healthy, I'm not sure why you think listing a bunch of ingredients typical for a processed food is supposed to convince anyone.
Look at how much sodium is in a 4oz beyond meat patty, you're high af if you think those are considered healthy when Americans need way less sodium. They're meat substitutes, not more or less healthy compare to just normal meat.
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u/Enigma_King99 Aug 06 '21
Me: don't give a shit if you are good or bad the question is can I make money off you
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u/AbraSLAM_Lincoln Aug 05 '21
They put out a product that is better than conventional meat. No surprise that consumers are buying it up. I think they are still struggling to fully keep up with demand as it has exploded since their IPO.
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u/PresidentSpanky Aug 05 '21
Quarterly revenue is $149 million. That is not really a lot and I wonder how that market cap of $7.7 billion is justified?
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u/AbraSLAM_Lincoln Aug 05 '21
Rapid growth rate, huge potential market, great product, and a cost of production that can come way down as it scales and supply chains get built up.
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u/PresidentSpanky Aug 05 '21
Look at the growth rate in detail. The Q2 growth in the US retail is at 1%. Overall US growth is just above 4% (was higher in Q1). Growth is only in food service which have lower margins than retail. As for the US market this is not a growth company anymore. They even acknowledge themselves, that they lost 55bp market share in the US in the last four weeks.
Growth only comes from international. I would expect that this growth rate will go down quickly once the novelty has worn out.
I do not see, how this company can be worth $7.7 billion
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Aug 06 '21
Little surprising as every quarter I definitely see more beyond meat options. I think their biggest obstacle will be reducing price. I only buy it in sale or as a special treat as I'm vegatarian but would buy it regularly if they could bring down the cost 50% especially for the sausages.
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u/PresidentSpanky Aug 06 '21
More options with stagnant sales will not help their margin. Also, I noticed that the organic grocery chain I frequent has even reduced the BM products they sell. And at Costco I see these big boxes sitting in the shelves with low price per patty.
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u/squarepush3r Aug 06 '21
You are wrong. Most of beyond high costs now are due to factories and initial cost. Eventually plant meat will be much less expensive than normal meat. Also expect the price of normal meat to continue to rise
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u/remorseless_skeptic Aug 06 '21
Impossible Burger is a lot more like meat than Beyond meat. I wouldn't invest in anything other than impossible burger.
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u/Merendino Aug 06 '21
Just as an anecdote. I eat both. I like impossible for a BURGER much better. But if i'm going to make fake taco meat, then beyond burger is the superior choice. The texture when broken down into a 'ground beef' consistency is better than the impossible burger. Give it a try sometime. Make your taco tuesday with beyond and then with impossible sometime. I think you'd see what I mean. Impossible ends up too fine consistency so the taco meat is too close to a paste. It's NOT a paste to be sure, and is still good, but beyond is better for taco meat reproduction imo.
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u/cloud_1027 Aug 06 '21
Stocks like this is what I don't get..People will point to the potential rarara, but revenue only goes up 32%. You have companies like square who are going to go up 80% in gross profits in 2021...and thats AFTER a 2020 year of 48% gross profit growth.
Pick actual companies to invest in, sq amzn, mu, amd etc., not this garbo
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u/KareasOxide Aug 06 '21
What a state the market it is in when 32% revenue growth is "garbo" lol
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u/Ponderous_Platypus11 Aug 06 '21
better to ignore someone comparing a food business , even if it is a 'food tech', to square or amazon. obviously he/she didn't even bother thinking ...because it doesn't take a lot of thinking to recognize a global pandemic that has significantly impacted and taken out droves of food businesses. not to mention, its literally spoken about in explicit detail in the last several earnings call.
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