Correction to Beyond Meat's Protein Drinks Article on Jan. 16 — WSJ

Wrapping up Q3 earnings, we look at the numbers and key takeaways for the perishable food stocks, including Beyond Meat and its peers.

The perishable food industry is diverse, encompassing large-scale producers and distributors to specialty and artisanal brands. These companies sell produce, dairy products, meats, and baked goods and have become integral to serving modern American consumers who prioritize freshness, quality, and nutritional value. Investing in perishable food stocks presents both opportunities and challenges. While the perishable nature of products can introduce risks related to supply chain management and shelf life, it also creates a constant demand driven by the necessity for fresh food. Companies that can efficiently manage inventory, distribution, and quality control are well-positioned to thrive in this competitive market. Navigating the perishable food industry requires adherence to strict food safety standards, regulations, and labeling requirements.

The 12 perishable food stocks we track reported a satisfactory Q3. As a group, revenues along with next quarter’s revenue guidance were in line with analysts’ consensus estimates.

In light of this news, share prices of the companies have held steady as they are up 3.7% on average since the latest earnings results.

Beyond Meat

A pioneer at the forefront of the plant-based protein revolution, Beyond Meat is a food company specializing in alternatives to traditional meat products.

Beyond Meat reported revenues of $70.22 million, down 13.3% year on year. This print exceeded analysts’ expectations by 2.1%. Despite the top-line beat, it was still a softer quarter for the company with revenue guidance for next quarter missing analysts’ expectations and a significant miss of analysts’ EBITDA estimates.

Unsurprisingly, the stock is down 24.1% since reporting and currently trades at $1.03.

Read our full report on Beyond Meat here, it’s free.

Best Q3: Mission Produce

Founded in 1983 in California, Mission Produce grows, packages, and distributes avocados.

Mission Produce reported revenues of $319 million, down 10% year on year, outperforming analysts’ expectations by 8.5%. The business had an incredible quarter with a solid beat of analysts’ gross margin estimates and an impressive beat of analysts’ EBITDA estimates.

Mission Produce delivered the biggest analyst estimates beat among its peers. Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 6.5% since reporting. It currently trades at $12.27.

Slowest Q3: Calavo

A trailblazer in the avocado industry, Calavo Growers is a pioneering California-based provider of high-quality avocados and other fresh food products.

Calavo reported revenues of $124.7 million, down 26.6% year on year, falling short of analysts’ expectations by 15.7%. It was a disappointing quarter as it posted a significant miss of analysts’ revenue estimates and a significant miss of analysts’ EBITDA estimates.

Calavo delivered the weakest performance against analyst estimates and slowest revenue growth in the group. Interestingly, the stock is up 12.9% since the results and currently trades at $25.49.

Read our full analysis of Calavo’s results here.

Pilgrim's Pride

Offering everything from pre-marinated to frozen chicken, Pilgrim’s Pride produces, processes, and distributes chicken products to retailers and food service customers.

Pilgrim's Pride reported revenues of $4.76 billion, up 3.8% year on year. This number surpassed analysts’ expectations by 0.8%. Overall, it was a very strong quarter as it also produced a solid beat of analysts’ EBITDA estimates and an impressive beat of analysts’ gross margin estimates.

The stock is up 9.2% since reporting and currently trades at $41.64.

Read our full, actionable report on Pilgrim's Pride here, it’s free.

Vital Farms

With an emphasis on ethically produced products, Vital Farms specializes in pasture-raised eggs and butter.

Vital Farms reported revenues of $198.9 million, up 37.2% year on year. This result topped analysts’ expectations by 3.7%. It was a very strong quarter as it also put up an impressive beat of analysts’ EBITDA estimates and a solid beat of analysts’ adjusted operating income estimates.

Vital Farms delivered the fastest revenue growth and highest full-year guidance raise among its peers. The stock is down 8.4% since reporting and currently trades at $29.48.

Read our full, actionable report on Vital Farms here, it’s free.

What Happened?

Shares of plant-based protein company Beyond Meat jumped 8.8% in the afternoon session after the company launched a new plant-based protein beverage line, Beyond Immerse, marking its first entry into the beverage market. This move represented the first time the company introduced a non-meat product in its history. The new drink line combined pea protein with fiber, antioxidants, and electrolytes. It was released in three flavors and offered two different formulations with either 10 or 20 grams of protein. The expansion into functional beverages was viewed as an effort to capitalize on strong consumer demand for protein. The products were made available for a limited time on the company's direct-to-consumer platform, Beyond Test Kitchen.

What Is The Market Telling Us

Beyond Meat’s shares are extremely volatile and have had 74 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The previous big move we wrote about was 23 days ago when the stock dropped 6.5% on the news that the company amended its debt agreements to allow for the exchange of certain debt into common stock and lowered the strike price on warrants, signaling potential dilution for shareholders. The plant-based meat company changed its intercreditor agreement to permit exchanges of some second-lien debt for company stock, a move that could increase the number of shares outstanding. At the same time, Beyond Meat cut the warrant exercise price for a lender from $3.26 to $1.95 per share, making it more likely that new shares would be created.

Beyond Meat is up 17.4% since the beginning of the year, but at $1.04 per share, it is still trading 76.5% below its 52-week high of $4.40 from February 2025. Investors who bought $1,000 worth of Beyond Meat’s shares 5 years ago would now be looking at an investment worth $7.39.

What Happened?

Shares of plant-based protein company Beyond Meat fell 6.5% in the afternoon session after the company amended its debt agreements to allow for the exchange of certain debt into common stock and lowered the strike price on warrants, signaling potential dilution for shareholders. 

The plant-based meat company changed its intercreditor agreement to permit exchanges of some second-lien debt for company stock, a move that could increase the number of shares outstanding. At the same time, Beyond Meat cut the warrant exercise price for a lender from $3.26 to $1.95 per share, making it more likely that new shares would be created.

What Is The Market Telling Us

Beyond Meat’s shares are extremely volatile and have had 73 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The previous big move we wrote about was 14 days ago when the stock gained 4% on the news that a partial recovery followed a significant sell-off in previous trading sessions. 

The stock’s small gain came after a drop of more than 6.5% during the last trading day, which marked its fifth consecutive day of losses. The recent negative pressure on the shares stemmed from several developments. Multiple law firms were scrutinizing Beyond Meat for possible securities law violations after the company announced a substantial non-cash impairment charge. In addition, some financial firms lowered their price targets on the stock, citing challenges like increased U.S. demand for animal meat and tough competition from other plant-based brands, which dampened the company's growth prospects.

Beyond Meat is down 73.9% since the beginning of the year, and at $1.01 per share, it is trading 77.2% below its 52-week high of $4.40 from February 2025. Investors who bought $1,000 worth of Beyond Meat’s shares 5 years ago would now be looking at an investment worth $7.18.

What Happened?

Shares of plant-based protein company Beyond Meat fell 3.7% in the afternoon session after the stock reversed course following a massive, multi-day rally that appeared to be driven by a short squeeze rather than any positive company news. 

The stock had surged in previous sessions despite the company facing significant challenges. A short squeeze happened when a heavily shorted stock's price went up, forcing traders who bet against it to buy shares to cover their positions, which in turn pushed the price even higher. This rally occurred even as Beyond Meat reported falling revenue, widening net losses, and negative profit margins. The company's financial health was also a concern, with reports noting shrinking sales and a high cash burn rate. The downward move suggested the buying pressure from the short squeeze was fading.

The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Beyond Meat? Access our full analysis report here.

What Is The Market Telling Us

Beyond Meat’s shares are extremely volatile and have had 70 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The previous big move we wrote about was 19 days ago when the stock dropped 6.9% on the news that analysts at Mizuho and Barclays lowered their price targets on the stock following the company's weak third-quarter financial report and poor future guidance. The plant-based meat company's results showed falling demand, with U.S. retail volumes dropping 13% and foodservice volumes declining 27%. Beyond Meat missed earnings per share estimates and issued fourth-quarter revenue guidance that was below consensus expectations. The company also recorded a significant $77 million impairment charge, a write-down that signaled diminished expectations for its long-term performance. Mizuho cut its price target to $1.00 from $1.50, and Barclays also lowered its target to $1.00.

Beyond Meat is down 64.8% since the beginning of the year, and at $1.36 per share, it is trading 72.6% below its 52-week high of $4.96 from December 2024. Investors who bought $1,000 worth of Beyond Meat’s shares 5 years ago would now be looking at an investment worth $9.80.