Market Overview

Beyond Meat VC Investor Sees Upside Ahead: 'It's Got A Remarkable Future'

Beyond Meat VC Investor Sees Upside Ahead: 'It's Got A Remarkable Future'

Plant-based and meat alternative food product maker Beyond Meat Inc (NASDAQ: BYND) could face a scenario in which it's unable to keep up with industry demand, according to CNBC. 

What Happened

Beyond Meat faces a "high-class problem," but the company is backed by a competent management team that has "taken all the right moves," Gregg Smith, an early venture capital investor in Beyond Meat, told CNBC in a Friday interview.

The company is actively planning for future expansion and they "know how to meet demand," he said. 

Beyond Meat is the market leader in a relatively new food space, and this should be further confirmed when restaurant chains tap the company to supply food products, Smith said.

Why It's Important

What's more important to watch than supply and demand indicators are Beyond Meat's gross margins, which were "quite remarkable" at around 27 percent in Thursday's earnings report, Smith said. Traditional meat companies report margins mostly in the high single-digit range, he said. 

When Beyond Meat achieves mass scale over the coming years, it should be able to improve margins to the mid-30s range, Smith said. Over the near-term, the company should be able to exceed the Street's expectations for full-year revenue of around $210 million, he said, adding that revenue could come in closer to $250 million.

Similarly, 2020's numbers could also surprise to the upside, Smith said. 

"It's a remarkable company and it's got a remarkable future." 

Related Links:

Beyond Meat Continues Surge After Q1 Earnings Beat

Burger King, McDonald's And KFC's Stance On Plant-Based Meat Products

Photo courtesy of Beyond Meat. 


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