To be honest, folks to held Beyond Meat (NASDAQ:BYND) shares over the past year haven’t seen any gains, and the fact that BYND stock doesn’t pay a dividend isn’t exactly helping the situation.
Thus, the shareholders’ patience is being tested in a big way. When will the big breakout moment finally arrive?
There’s no way to predict exactly when this will happen.
However, there are reasons to believe that BYND stock ought to move beyond its long-standing resistance level.
Among those reasons are the company’s impressive financial performance – and the vastly expanded presence of Beyond Meat’s plant-based products.
A Closer Look at BYND Stock
I suppose you could say that BYND stock has been a short-term trader’s paradise.
That’s because, during the past 12 months, it has popped and dropped multiple times, which presents opportunities for dip buyers.
The main resistance point is $195, as the share price approached that level in October 2020 and again in January. Both times, the stock rallied to that level and then retreated.
As of June 11, 2021, BYND stock was trading at $149.42. A push beyond $200 is probably inevitable, but investors will definitely want to watch the $195 level closely to see how the stock behaves.
One thing to be aware of is that Beyond Meat has trailing 12-month earnings per share of -$1.31.
This isn’t deeply negative for a $150-ish stock, but the shareholders will definitely want to see that number turn positive in the near future.
Here, There and Everywhere
You never know where Beyond Meat products might extend their presence next.
In late May, the company expanded its partnership with fast food restaurant chain KFC in China.
For a limited time in over 2,600 stores in 28 cities across China, KFC customers could try the Plant-Based Spicy Beef Wrap, which has no cholesterol and 12.8 grams of protein.
It’s a sign that the fake meat market is growing on a global level. Piper Sandler analyst Michael Lavery even suggested that the faux-meat category could be worth as much as $8 billion by 2025.
Moving over to North America, Beyond Meat recently announced the launch of a value six-pack of the company’s famous Beyond Burger in Canada.
These six-packs will be sold in the frozen meat aisle for a suggested retail price of 19.99 CAD (3.33 CAD per patty).
On top of all that, Beyond Meat revealed product introductions and/or expansions throughout Europe, including in the U.K., Germany, Australia, Switzerland and the Netherlands.
Plus, Beyond Meat reportedly “continues its retail expansion focus in additional countries such as France, Spain, Belgium, Italy and more at prominent retailers such as Casino Group, Carrefour, Esselunga and Delhaize.”
Now that we’ve taken a trip around the world, it’s time to return home and check on Beyond Meat’s recent fiscal performance.
The overall picture isn’t perfect, but it’s positive for the most part.
Here are the highlights of Beyond Meat’s first quarter of 2021:
- Net revenues totaled $108.2 million. That’s an increase of 11.4% on a year-over-year basis.
- The company posted a gross profit of $32.7 million. This translates to a gross margin of 30.2% of net revenues, so that’s a positive.
- On the less positive side, Beyond Meat reported a net loss of $27.3 million. Still, that’s only 43 cents per common share, which isn’t too bad.
- The adjusted EBITDA was a loss of $10.8 million. That equates to -10% of net revenues, so there’s room for improvement in this area.
There’s a mixed picture here, I’ll admit. Still, Beyond Meat President and CEO Ethan Brown chose to accentuate the positive data.
“We were pleased to see sequential improvement in our revenue growth and gross margin performance despite continued COVID-19 pressure on our foodservice business,” Brown commented.
The Bottom Line
For plant-based food market investors, Beyond Meat remains a world leader that’s growing its presence rapidly.
Moreover, it’s likely that BYND stock will have its major breakout moment in the near future. For patient traders, the profits should be delicious.
On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.