As meat shortages continue around the country due to COVID-19 lockdowns shutting down production, at least one company is benefiting: Beyond Meat. The plant-based meat startup’s stock has surged 162% since mid-March, reports CNBC, due partly to meat-production plant shutdowns.
Matter of fact, Beyond Meat posted better than expected quarterly earnings last night. In Q1 2020, Beyond Meat had net revenues of $97.1 million—up 141% year-over-year. Its net income was $1.8 million, which, while that may not sound like much, was considerably higher than the net loss of $6.6 million a year earlier.
However, while Beyond Meat is seeing a surge due to more people eating at home (and thus buying its products as other meat products become scarce), the company issued a warning that the “magnitude and duration of the [COVID-19] impact to the food service channel, in particular” could affect its future revenues.
The problem for Beyond Meat, in other words, is that while its products might be hot in the grocery store right now, much of their revenue comes from their retail partners, including Starbucks and Dunkin’ Donuts, who have had many of their stores shuttered for a while now. That’s precisely why despite the good Q1 the company reported, it also said it was suspending its previously reported 2020 outlook until further notice.