Tag Archives: Beyond Meat Inc

Netflix, Lululemon, DocuSign and more

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Check out the companies making the biggest moves midday:

Lululemon — Shares of Lululemon fell 12% after the athletic apparel company gave a weaker-than-expected fourth-quarter outlook. In the third quarter, the company beat Wall Street’s expectations on the top and bottom lines.

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Beyond Meat — Beyond Meat’s stock dropped more than 8% after being downgraded by Argus to sell from hold. The firm’s analyst cited falling demand amid weaker economic conditions.

Broadcom — Broadcom gained 3.1% after giving an upbeat revenue forecast and reporting better-than-expected quarterly results after the bell Thursday. The chipmaker also increased its dividend by 12.2% and said it would resume stock buybacks.

Tesla — Tesla’s stock was up more than 4%, paring some of the losses it suffered this week. Reuters reported on Friday the electric-vehicle maker will suspend Model Y assembly at its Shanghai plant between Dec. 25 and Jan. 1. Inventory levels at the plant had risen sharply over the summer.

Carvana — Shares of Carvana rose 2% after lenders told The Wall Street Journal that they don’t anticipate the online car seller will file for bankruptcy soon. These debtholders are joining together amid reports earlier this week that the company is looking to restructure its debt, the paper said. Carvana had seen success during the pandemic, but rising interest rates and weaker car demand have hurt its performance.

Netflix — Netflix gained 5% after being named a “best idea” for 2023 by Cowen and being upgraded by Wells Fargo to overweight from equal weight. Cowen said it sees free-cash flow ramping up next year, while Wells Fargo said content growth would lessen customer churn.

RH — RH, formerly known as Restoration Hardware, rose 4.5% after reporting third-quarter earnings-per-share and revenue that beat expectations. However, the retailer also said it expected business trends to deteriorate.

Coinbase — Shares of the crypto services firm fell 2.6% after Mizuho downgraded Coinbase and said its price could fall another 30%. Crypto equities such as Coinbase have been under pressure with cryptocurrency prices, as investors digest the macro picture and the latest developments on FTX.

DocuSign — Shares of DocuSign jumped 16% after the electronic signature company posted upbeat quarterly results. It also reported better-than-expected billings, subscription renewals and additional sales to existing customers.

Costco — The wholesaler gained 1.6% after Cowen named the stock a “best idea” heading into 2023, noting the company’s focus on value could be a winning strategy as consumers get more price conscious.

AmerisourceBergen — AmerisourceBergen fell 2.7% after Walgreens sold about $1 billion shares of the drug distributor. Walgreens remains its largest shareholder, with its stake now down to 17% from 20%.

Vale — The Brazil-based mining company gained 3.5% after Morgan Stanley upgraded the stock to overweight from equal weight, citing a “cocktail” of positive catalysts such as price momentum for iron ore and China exiting its Covid-zero policy.

Bath & Body Works — Shares of Bath & Body Works gained rose 2.1% after activist investor Dan Loeb boosted his stake in the retailer. Loeb said he might push for board charge to improve governance issues at the company.

— CNBC’s Carmen Reinicke, Alexander Harring, Tanaya Macheel and Christina Cheddar-Berk contributed reporting.

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Beyond Meat suspends operating chief Doug Ramsey after arrest for alleged nose biting

Douglas Ramsey

Source: Washington County, Arkansas

Beyond Meat said its operating chief Doug Ramsey has been suspended, effective immediately, after he was arrested Saturday evening for allegedly punching a man and biting his nose.

The company said in a statement on Tuesday afternoon that Jonathan Nelson, the company’s senior vice president of manufacturing operations, will oversee Beyond’s operations activities on an interim basis.

Ramsey, 53, was charged with terroristic threatening and third-degree battery and booked in the Washington County jail after allegedly assaulting a driver in a parking garage near Razorback Stadium.

Ramsey allegedly punched through the back windshield of a Subaru after it made contact with the front tire of Ramsey’s car, according to a preliminary police report obtained by CNBC. The Subaru owner then got out of his car, and Ramsey allegedly started punching him and bit his nose, “ripping the flesh on the tip of the nose,” according to the report. The victim and a witness also alleged that Ramsey told the Subaru owner he would kill him.

Ramsey has been Beyond Meat’s chief operating officer since December. The news of his arrest after a University of Arkansas football game brought more scrutiny to the vegan food company, which has been struggling with disappointing sales and investor skepticism over its long-term growth prospects. The stock has fallen 75% this year, dragging its market down to $1.02 billion. Just three years ago, the company was valued at $13.4 billion.

Prior to joining Beyond Meat, Ramsey spent three decades at Tyson Foods, overseeing its poultry and McDonald’s businesses. Beyond Meat was relying on his experience to help the company successfully pull off big launches, particularly with fast-food companies like Taco Bell owner Yum Brands and McDonald’s.

Ramsey did not respond to a request for comment from CNBC.

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Lululemon, Broadcom, Starbucks and more

Check out the companies making headlines before the bell:

Lululemon (LULU) – Lululemon rallied 9.5% in the premarket after reporting better-than-expected quarterly results and issuing an upbeat outlook. The athletic apparel and leisurewear maker said it continues to see strong sales momentum.

Broadcom (AVGO) – Broadcom rose 2% in premarket trading after quarterly earnings and revenue exceeded analyst forecasts. The chip maker also issued a stronger-than-expected revenue forecast for the current quarter. CEO Hock Tan said Broadcom expected strong demand across all its end markets to continue this quarter.

Starbucks (SBUX) – Starbucks named Laxman Narasimhan as its new chief executive officer. Narasimhan was most recently CEO of Lysol and Enfamil maker Reckitt Benckiser, and has served in executive positions at PepsiCo. Narasimhan will join Starbucks on October 1 as incoming CEO and take over for interim CEO Howard Schultz in April 2023.

Bed Bath & Beyond (BBBY) – The housewares retailer’s stock slid 5.5% in premarket trading, setting it up for a possible fourth straight negative session. Bed Bath & Beyond – popular among “meme stock” traders – unveiled a number of steps on Wednesday designed to shore up its finances.

PagerDuty (PD) – PagerDuty shares jumped 5.8% in premarket action following a better-than-expected quarterly report and strong guidance. The operations management software company saw a 7.1% increase in total paid customers compared with a year earlier and a 37.5% surge in the number of customers providing annual recurring revenue exceeding $100,000.

Shell (SHEL) – Shell CEO Ben van Beurden is preparing to step down next year, after nearly a decade in that job, according to two company sources who spoke to Reuters. The sources say the energy producer has identified four candidates to succeed van Beurden. Shell gained 1.4% in off-hours trading.

Beyond Meat (BYND) – Investment firm Baillie Gifford reported a 6.61% stake in the maker of plant-based meat alternatives as of August 31, compared with a 13.38% stake on December 31, 2021. Beyond Meat rose 1% in the premarket.

Rocket Lab USA (RKLB) – The space rocket company’s stock added 2.9% in premarket action after successfully test firing a reused Rutherford first stage engine for the first time. The Rutherford engine is a liquid propellant rocket engine designed and manufactured by Rocket Lab.

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Beyond Meat (BYND) Q2 2022 earnings

Vegetarian sausages from Beyond Meat Inc, the vegan burger maker, are shown for sale at a market in Encinitas, California, June 5, 2019.

Mike Blake | Reuters

Beyond Meat on Thursday lowered its revenue forecast for 2022 and announced it will trim its workforce by 4%, citing broader economic uncertainty.

The El Segundo, California-based company also reported a wider-than-expected loss and weak sales. Its shares fell 2% in extended trading.

Here’s what the company reported compared with what Wall Street was expecting, based on a survey of analysts by Refinitiv:

  • Loss per share: $1.53 vs. $1.18 expected
  • Revenue: $147 million vs. $149.2 million expected

Net sales dropped 1.6% to $147 million. The company attributed the decline to changes in foreign exchange rates, increased discounts and sales to liquidation channels.

“We recognize progress is taking longer than we expected,” CEO Ethan Brown said in a statement, referring to the company’s push into mass market consumption with plant-based products that mimic meat.

For 2022, Beyond now expects revenue of $470 million to $520 million, down from its prior forecast of $560 million to $620 million. The company said inflation, rising interest rates and growing concerns about a recession were among the factors that drove the revised outlook.

Beyond also said it will lay off about 4% of its global workforce, which is expected to save about $8 million on an annual basis. However, the company will also spend roughly $1 million in separation costs that will impact its third-quarter results.

Beyond Meat reported a second-quarter net loss of $97.1 million, or $1.53 per share, wider than the net loss of $19.7 million, or 31 cents per share, a year earlier. The company said it spent more on ingredients and manufacturing this quarter. Moreover, its meatless Beyond Jerky, made through a joint venture with PepsiCo, weighed on profit margins for the second consecutive quarter.

U.S. grocery sales rose 2.2% in the quarter, offsetting a 2.4% decline of its restaurant business. Prior to the pandemic, restaurants accounted for more than half of its sales, but the business has struggled to bounce back.

Outside the U.S., grocery sales fell 17%, while restaurant sales increased 7%. The two international divisions generally contribute roughly equal revenue for Beyond.

Read the full earnings report here.

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Plant-based food stocks Beyond Meat, Oatly face a reset

In this photo illustration Oatly oat milk is shown on May 20, 2021 in Chicago, Illinois.

Scott Olson | Getty Images

Wall Street appears to be souring on plant-based substitutes.

Shares of Beyond Meat and Oatly have shed more than half their value this year. The stocks are both high-profile and relative recent entrants to public markets, prone to big jumps and sharp declines in value, volatility that’s only been exacerbated by broader market swings and pressure from short sellers.

Beyond Meat trades 87% below its all-time high, and Oatly, which will mark its first anniversary as a public company on Friday, trades more than 80% below its debut price.

Industry experts say the declines may mark an inevitable shakeout as investor optimism meets reality.

After years of climbing sales, consumer interest in meat alternatives is waning. Retail sales of plant-based meat were roughly flat in the 52 weeks ended April 30 compared with the year-ago period, according to Nielsen data. Total volume of meat substitutes has fallen 5.8% over the last 52 weeks, market research firm IRI found.

“We’ve seen this in many categories in the past that take off. They have a shakeout period,” Kellogg CEO Steve Cahillane said in early May on the company’s earnings call.

Kellogg owns Morningstar Farms, a legacy player in the plant-based category with 47 years in grocery stores. Morningstar is the top seller of meat alternatives, with 27% of dollar share according to IRI data. Beyond trails in second place with 20% of dollar share, and Impossible Foods follows in third with 12%.

“The race for scale, the race for market share, the race for sales growth and consumer retention over time is going to happen,” Chris DuBois, senior vice president of IRI’s protein practice, said on a panel presented by Food Business News on Thursday.

Downward spiral

The early days of the pandemic drove soaring demand for plant-based substitutes as consumers cooking at home looked for new options. Many tried plant-based beef, chicken or sausage for the first time and kept buying it, even if they weren’t vegetarian or vegan. The category’s sales were already growing quickly before the crisis, but they accelerated at an even faster clip.

Companies and investors alike bet that consumers would keep eating meat alternatives and drinking milk substitutes, such as Oatly’s oat-based beverage, even as Covid fears eased and lockdowns lifted.

“If you look at about a year ago, there was a tremendous amount of effervescence and enthusiasm around plant-based, to the point that it attracted a lot of speculative dollars and investments. We saw the multiples and the valuations get very enthusiastic — that’s the politest way to say it,” said Michael Aucoin, CEO of Eat & Beyond Global, which invests in plant-based protein companies.

Oatly, for example, debuted on the U.S. public markets in May 2021 with an opening price of $22.12 a share, giving the company a valuation of $13.1 billion, despite being unprofitable. As of Friday’s close, shares of Oatly were trading for $3.71 per share, knocking its market cap down to about $2.2 billion.   

Beyond’s stock has had an even more dramatic ride. It debuted on the public markets in May 2019 at $46 per share and soared in the months after, hitting an all-time high of $234.90 on July 26 of that year, which gave it a market value of $13.4 billion. The stock closed Friday at $31.24 per share, with a market value of under $2 billion.

Investors’ enthusiasm made it relatively easy for plant-based companies to raise money in recent years, through either the public or private markets, Aucoin said. In 2021, the plant-based protein category saw $1.9 billion in invested capital, which represented nearly a third of dollars invested into the category since 2010, according to trade group Good Food Institute.

The companies then plowed much of those funds into marketing to push consumers into trying their plant-based products. The arena was also growing increasingly crowded as traditional food companies and new start-ups began chasing the same growth. Tyson Foods, a one-time investor in Beyond, launched its own plant-based line. So did fellow meat processing giants JBS and Cargill.

“You also saw irrational exuberance in the category and the entrance of many, many new players, which took a lot of shelf space, took a lot of trial, not always the highest-quality offerings, to be honest with you,” Cahillane told analysts on Kellogg’s earnings call.

Flatlining sales

The turning point came in November when Maple Leaf Foods sounded the alarm that growth of its plant-based products was slowing, according to Aucoin. The Canadian company bought plant-based brands Field Roast, Chao and Lightlife in 2017 as an entry point into the fast-growing category.

“In the past six months, unexpectedly, there has been a rapid deceleration in the category growth rates of plant-based protein. Of course, our performance has suffered in the middle of this. But the more concerning set of facts are rooted in category performance, which is basically flatlined,” Maple Leaf CEO Michael McCain told investors on the company’s third-quarter earnings call in November

Company executives said that Maple Leaf would review its plant-based portfolio and its strategy.

Less than a week after Maple Leaf’s warning, Beyond Meat disappointed investors with its own lackluster results, even after warning about weaker sales a month earlier. Beyond chalked it up to a range of factors, such as the surging delta variant of the Covid virus and distribution problems, but its business hasn’t recovered yet.

Beyond’s first-quarter results, released on Wednesday, marked the third consecutive reporting period that the company posted wider-than-expected losses and disappointing revenue.

Beyond Meat CEO Ethan Brown told analysts on Wednesday’s call that the company’s weak performance stemmed from four factors: softness in the overall plant-based category, a consumer shift from refrigerated meat alternatives to frozen ones, higher discounts and increased competition.

Competition has likewise put pressure on Oatly. The U.S. oat milk category keeps growing, but Oatly is losing market share as players with more scale release their own versions. Dairy company HP Hood’s Planet Oat recently overtook Oatly as the top oat milk maker in the U.S.

Opportunities ahead

The slowdown isn’t hitting every plant-based manufacturer. Impossible Foods said in March its fourth-quarter retail revenue soared 85%, boosted by its expansion into new grocery stores. The company is privately owned, so it doesn’t have to disclose its financial results publicly.

But the upheaval has weighed on Impossible in other ways. Reuters reported in April 2021 that Impossible was in talks to go public, aiming for a valuation of $10 billion, about $1.5 billion higher than Beyond’s market value at the time. But the company never filed a prospectus, instead raising $500 million from private investors in November at an undisclosed valuation.  

Josh Tetrick, CEO of JUST Egg, which accounts for about 95% of U.S. egg substitute sales, told CNBC he sees plenty of growth ahead.

Sales of egg substitutes are roughly flat over the 52 weeks ended April 30, according to Nielsen data, but Tetrick sees opportunity to boost consumer awareness and the number of restaurants with its egg substitute on their menus.

Aucoin is confident consumer interest in plant-based alternatives will grow and eventually bring back investor optimism in the category, although not to the same extent as its heyday.

“There will be a shakeout as the money isn’t as easily available, but I do think that we’ll see some true winners and strong companies emerge,” Aucoin said.

The industry could see brand consolidation soon as the meat alternatives category closes in on $1.4 billion in annual sales, RI’s DuBois said. Together, Morningstar Farms, Beyond and Impossible account for nearly 60% of the dollars spent on meat substitutes.

“I think over the next year of so, you’re going to see the real leaders or so emerge,” DuBois said.

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Foot Locker, Cinemark, Dell and others

Check out the companies making headlines before the bell:

Foot Locker (FL) – Foot Locker shares slumped 16.1% in the premarket after the athletic apparel and shoe retailer gave a weaker-than-expected full-year profit and comparable-store sales outlook. The company cited changes in its vendor mix as well as a decline in fiscal stimulus versus a year ago. Foot Locker reported better-than-expected results for its fiscal fourth quarter, including an unexpected rise in comp sales.

Cinemark (CNK) – Cinemark jumped 3.7% in the premarket after the movie theater operator reported an unexpected quarterly profit and revenue that beat Wall Street forecasts. Attendance jumped as Covid-19 restrictions loosened.

Dell Technologies (DELL) – Dell tumbled 9% in premarket action after saying it expected its order backlog to swell this quarter, with supply chain issues limiting its ability to fulfill strong order demand.

Block (SQ) – Block surged 16.5% in premarket trading after the payments company formerly known as Square reported better-than-expected profit and revenue for its latest quarter. Block also gave an upbeat forecast for the current quarter and the full year amid growing success for its Cash App.

LendingTree (TREE) – The financial services company’s stock added 2.6% in the premarket after reporting a narrower-than-expected loss and revenue that exceeded analyst forecasts. LendingTree saw strong performance in its consumer segment during the quarter.

Coinbase (COIN) – Coinbase reported quarterly earnings of $3.32 per share, well above the consensus estimate of $1.85, with the cryptocurrency company’s seeing revenue also topping Wall Street forecasts. However, Coinbase said volatility in the cryptocurrency market will result in lower transactions volume this quarter. Coinbase fell 2% in premarket trading.

Beyond Meat (BYND) – Beyond Meat slid 10.8% in the premarket after reporting a wider-than-expected quarterly loss and revenue that fell slightly short of Wall Street forecasts. The maker of plant-based meat substitutes also issued a weaker-than-expected forecast as it expects a temporary disruption of U.S. retail growth.

Etsy (ETSY) – Etsy shares surged 17.4% in premarket action after the online crafts marketplace beat quarterly estimates and issued a strong forecast. Etsy earned $1.11 per share for its latest quarter, compared with a consensus estimate of 79 cents, as it continues to see elevated demand that first developed during the pandemic.

Zscaler (ZS) – Zscaler took an 11.6% hit in the premarket despite beating quarterly estimates on the top and bottom lines. Investors are focusing on the cybersecurity company’s weaker-than-expected outlook, although it reported its strongest year-over-year revenue growth in three years.

Farfetch (FTCH) – Farfetch soared 30.5% in premarket action even though its adjusted quarterly loss of 3 cents per share merely matched estimates and revenue fell below the consensus estimate. The luxury fashion seller was profitable on an adjusted basis for 2021, encouraging investors after a recent tumble in the stock’s price.

KAR Auction Services (KAR) – Carvana (CVNA) is buying KAR Auction Services’ vehicle auction business in the U.S. for $2.2 billion, as the online used-car seller moves to boost its physical presence. KAR soared 66.2% while Carvana rose 0.8% in the premarket.

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Beyond Meat, Etsy & more

Beyond Meat “Beyond Burger” patties made from plant-based substitutes for meat products sit on a shelf for sale in New York City.

Angela Weiss | AFP | Getty Images

Check out the companies making headlines after the bell

Beyond Meat — Shares of the meat alternative producer tumbled more than 11% in extended trading after the company reported a wider-than-expected loss and shrinking revenue for its fourth quarter. Beyond Meat also released a weak forecast for its 2022 revenue.

Coinbase — Shares of the crypto trading platform dipped more than 5% in after-hours trading even after the company reported fourth-quarter earnings that beat analyst estimates. The company predicted that retail Monthly Transaction Users and total trading volume would be lower in Q1 2022 compared with Q4 2021.

Etsy — The online marketplace saw its stock pop a whopping 15% after the company beat analysts’ estimates for the fourth quarter. Etsy reported earnings of $1.11 per share for the December quarter, ahead of analysts’ consensus expectations of 79 cents, according to Refinitiv. Its quarterly revenue also came in above expectations.

KAR Auction Services — Shares of the used car company soared more than 60% in extended trading after it said it has agreed to be acquired by Carvana in a $2.2 billion all-cash deal. Carvana, which also reported a wider-than-expected loss for the fourth quarter, saw its stock fall more than 10% in after-hours trading.

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Tesla, Spotify, Netflix, Beyond Meat and more

The Spotify app on an iPhone.

Fabian Sommer | picture alliance | Getty Images

Stock picks and investing trends from CNBC Pro:

Intuitive Surgical – Shares of Intuitive Surgical rose 3.5% after Piper Sandler on Monday upgraded the medical stock to overweight from neutral. The firm said the “recent pullback offers investors an attractive entry point into a premier medtech name.”

Align Technology — Shares of the dental company popped more than 7% in midday trading after Morgan Stanley initiated coverage of Align Technology as overweight. “ALGN is well positioned in the fastest-growing segment of the Dental market with its leading position in clear aligners,” the firm said. The bank gave the stock a $575 per share price target.

Kellogg — Shares of the food company ticked 2.8% lower in midday trading after BMO downgraded Kellogg to market perform from outperform. The Wall Street firm said that it sees cereal “challenges” ahead.

Enphase Energy — Enphase Energy shares surged 10% after the company, which makes microinverters and backup energy storage for solar systems, announced an expansion of battery storage in Massachusetts.

Citrix Systems — Citrix shares fell 3.7% after reports that the cloud-computing company will be taken private in an all-cash deal worth $16.5 billion, including debt. Vista Equity Partners and an affiliate of Elliott Management are acquiring Citrix for $104 per share, according to The Wall Street Journal.

BlackBerry – BlackBerry shares added 4.7% after the communications software company announced a deal to sell its legacy patents for $600 million. The noncore patent assets include mobile devices, messaging and wireless networking. Catapult, a special purpose vehicle, was formed to acquire the BlackBerry patents.

Otis Worldwide – Shares of the elevator company rose more than 2% after Otis reported 72 cents in earnings per share for the fourth quarter, four cents ahead of estimates, according to Refinitiv. The company missed on revenue estimates but said it expected sales and operating margins to grow in 2022.

Walgreens – Walgreens shares dipped about 2% after Bloomberg reported the company has started the sales process for its Boots international drugstore unit. Additional buyout firms, such as Sycamore Partners, are reportedly considering bids.

— CNBC’s Yun Li, Tanaya Macheel, Margaret Fitzgerald and Jesse Pound contributed reporting

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Chewy, Lululemon, Beyond Meat, Peloton & more

Check out the companies making headlines before the bell:

Chewy (CHWY) – The online pet products retailer’s stock tumbled 10% in the premarket after it reported a wider-than-expected quarterly loss. Sales were in line with Street forecasts, but profit was impacted by higher costs for labor and supply chain issues.

Lululemon (LULU) – The athletic apparel maker reported adjusted quarterly profit of $1.62 per share, 21 cents above estimates, with revenue slightly above forecasts as well. However, Lululemon also warned that new Covid-19 variants could impact demand for “athleisure” clothing if virus concerns lead to temporary store closures and further supply chain issues. The stock slid 1.5% in premarket action.

Broadcom (AVGO) – The chip maker’s shares rallied nearly 7% in premarket trading after it beat Street forecasts on the top and bottom lines for its latest quarter. Broadcom earned an adjusted $7.81 per share, 7 cents above estimates, and also issued an upbeat forecast on continued high demand from its cloud computing customers.

Costco (COST) – The warehouse retailer earned $2.98 per share for its latest quarter, compared with a consensus estimate of $2.64, with revenue topping Street forecasts as well. The beat came despite higher costs and supply chain issues that Costco said it was able to largely mitigate. Costco rose 1.8% in the premarket.

Oracle (ORCL) – Oracle shares surged 12% in the premarket, after quarterly sales and revenue beat estimates and the business software company announced a $10 billion increase in its share repurchase program. Oracle earned an adjusted $1.21 per share, 10 cents above estimates, with particular strength for its cloud infrastructure business.

Beyond Meat (BYND) – Restaurant chain Taco Bell dropped plans to test Beyond Meat’s plant-based version of carne asada, according to a Bloomberg report. Taco Bell is said to have been dissatisfied with samples it received in October, although the companies continue to work together on new products. Beyond Meat slipped 1.6% in premarket trading.

C3Ai (AI) – The artificial intelligence software company’s stock soared 20% in the premarket after it won a $500 million contract from the U.S. Department of Defense for its suite of AI products.

American Outdoor Brands (AOUT) – The outdoor products maker reported adjusted quarterly profit of 58 cents per share, well below the 76 cent consensus estimate, with revenue also falling short of analyst forecasts. The company said sales slowed due to a shift in customer purchase timing into the prior quarter to lessen supply chain concerns. American Outdoor shares plummeted 19% in premarket action.

Vail Resorts (MTN) – The resort operator lost $3.44 per share for its latest quarter, smaller than the loss of $3.62 that analysts had anticipated, thanks to a jump in season pass sales. However, revenue was below estimates.

Peloton (PTON) – The fitness equipment maker’s shares lost 3.5% in the premarket after Credit Suisse downgraded the stock to “neutral” from “outperform”. The firm noted a number of headwinds for Peloton, including a return to out-of-home fitness and a shift in consumer spending.

AMC Entertainment (AMC) – The movie theater operator’s shares slid 1% in premarket trading, after SEC filings showed a sale of 312,500 shares by CEO Adam Aron and a sale of 18,000 shares by CFO Sean Goodman. Aron had indicated in November that he would soon begin selling shares as part of estate planning.

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Why the next fast-food chicken sandwich war may be a fake one

Vegan chicken quick-serve restaurants like San Antonio, Texas-based Project Pollo are aiming directly at Chick-fil-A and its fried chicken sandwich as the plant-based meat industry rises against one of fast-food’s recent best-selling menu items.

Bloomberg | Bloomberg | Getty Images

In an iconic scene from 1970’s film “Five Easy Pieces,” a young Jack Nicholson orders a chicken sandwich without the chicken.

The waitress is incredulous. “You want me to hold the chicken?” she retorts.

Half a century later, this nix-the-chicken request would hardly register an eye-roll. While the chicken sandwich war that kicked off back in summer 2018 between Popeye’s and Chick-fil-A has not reached an official cease-fire, and has spread to additional fast food giants, a new contender is poised to slay its competitors on the battlefield: a chicken sandwich that, well, holds the chicken.

Could a vegan chicken sandwich war be on the way? Beyond Meat and Impossible Foods have both recently added plant-based chicken options for restaurants and grocery stores — just this week, Impossible Foods debuted its first chicken nugget product; in July, Impossible Foods launched chicken tenders for restaurants after an earlier effort to sell frozen nuggets in grocery stores ended in failure.

Impossible Foods’ chicken substitute at Fuku

Source: Katelyn Perry

If the local vegan fast-food scene around the U.S. is any indication, the idea may yet makes its way up the national food chain.

‘The future of chicken’ vs. Chick-fil-A

During the past year, Texans who pull into a familiar fast-food drive-thru craving a fried chicken sandwich might instead encounter a Project Pollo, a new quick serve chain that serves soy-based fried “Chikn” sandwiches and other plant-based comfort foods such as mac and cheese, wings and burgers. Since launching as a food cart at a San Antonio brewery in September 2020, Project Pollo has expanded its fledging empire with phenomenal speed, launching a new location roughly every month. When the company recently announced on Instagram that it would be taking over defunct Whataburgers in Houston and Corpus Christi in the coming fall, a growing cult following with handles like @vegan_dad_bod_killer and @nosh.on.plants erupted in jubilant emojis.

Every shuttered traditional fast-food outlet that relaunches as a Project Pollo, from a Church’s Fried Chicken to a Jack in the Box, represents a single victory in CEO Lucas Bradbury’s grand strategy: 100 locations by 2024. In the quest for world, or at least national, domination, Bradbury — who grew up as a Kansas farm boy raising chickens and cattle and went on to work in many fast-food industry executive positions — plans to drive Chick-fil-A out of business entirely within the next two decades.

Bradbury, who drained his bank accounts and sold his house to finance the first Project Pollo — with a new baby, and in the middle of a pandemic, no less — admitted he was operating without a Plan B, only the mission of making vegan food available to everyone. His entrepreneurial lightbulb moment occurred in the first months of the pandemic, when he challenged his extended family — his wife is already vegan — to go vegan for 30 days. They didn’t meet the target, he admits, but not for lack of desire: it was simply too expensive to dine out while eating a plant-based diet.

The rising cost of a plant-based diet is a typical stumbling block for the average American, he tells CNBC. “The only way to challenge the system is for plant-based eating to be more approachable.”

He told National Restaurant News in July, “This isn’t a fried piece of tofu. This is the future of chicken.”

A Chick-fil-A spokesperson said in an emailed statement that the company didn’t “have anything to share right now on this topic,” but added it is always exploring new options for the menu and does already include vegetarian items such as salads.

The plant-based meat consumer

As vegan upstarts appear in former fast-food franchises, analysts say there is reason to expect the fast-food chicken war will have a zero-cluck wave?

Overall, consumption of plant-based alternatives is up over the past two years, according to Darren Seifer, an industry analyst who tracks food and beverage trends for the NPD Group. Shipments of plant-based proteins from foodservice distributors to commercial restaurants increased by over 60% in April 2021 year over year, a rise accentuated by pandemic restrictions a year ago. Shipments are up over 16% compared to April 2019, according to NPD. Its data shows that plant-based chicken, specifically, grew by over 82% in April compared to a year ago, and over 25% compared to April 2019. 

It isn’t about catering to a vegan demographic — 90% of consumers who experiment with plant-based meat alternatives also eat meat and dairy. “It’s about every once and awhile making a healthier decision,” Seifer said.

In comparison to the 30% of consumers who gravitate towards meat alternatives due to concerns over animal welfare, the No. 1 motivator for those who choose plant-based foods is doing something healthier, Seifer said. And given that most consumers who might occasionally eat a plant-based meat products don’t identify as vegan or vegetarian, he added that it’s no surprise that the term “vegan” is not always used in product marketing.

In addition to health concerns, sustainably minded younger customers are driving the meatless trend. “When we’re talking about things like meat alternatives, 40% of people say they are drawn to environmental and sustainability concerns,” he said. “And the younger you go, the greater the numbers.”

Consumers stand in line at an Atlanta-based KFC throughout the day to be among the first to try Beyond Fried Chicken, a plant-based chicken made in partnership with Beyond Meat, on Tuesday Aug. 27, 2019. (

John Amis | AP

Among the national fast-food chains, chicken still rules the roost: Yum Brands’ KFC posted recent sales growth that surpassed Taco Bell and Pizza Hut — its same-store sales increased 30% in the most recent quarter. After KFC and McDonald’s both released new chicken sandwiches in February, fast food CEOs suggested that these new sandwiches are driving strong numbers. In fact, KFC is on the rebound, opening 428 net new locations in 62 countries during the second quarter. In April, KFC said it sold more than twice the volume of its new chicken sandwich compared with past versions.

With more than 400 locations in Texas alone, Chick-fil-A remains the largest quick-serve chicken restaurant in the country, according to the QSR 50, an annual report that tracks the fast-food sector. Even with aggressive competition, the brand recently garnered 41% of all sales on chicken sandwiches through food delivery apps, according to a report by Edison Trends.

Chicken supply chain shortages

Still, as legacy fast-food brands vie for market share by rolling out increasing elaborate chicken sandwiches (brioche bun, herbed mayo, artisanal pickles) the retail chicken industry is experiencing growing pains. That means soaring demand hindered by supply shortages, according to Seifer.

Not only is chicken trickier to procure, but it is also getting more expensive. According to U.S. government data, the retail price for chicken breast rose 9% year over year between July 2020 and July 2021. Those pressures could make more plant-based chicken alternatives an attractive option.

Still, legacy fast-food brands have been slow to deliver meatless chicken sandwiches. That’s not for lack of R & D: in 2019, KFC began collaborating with veggie brands like Beyond Meat and Quorn, piloting the Zero Chicken sandwich in the U.K., the Netherlands and Singapore. Stateside, the brand has tested Beyond Fried Chicken in local markets in the south and California in 2019 and 2020, but a nationwide U.S. launch for plant-based chicken is yet to happen.

A KFC spokeswoman said in a statement that it is continuing to evaluate the results of those tests and discuss potential plans for a future national rollout of Beyond Fried Chicken, but it has never tested a plant-based chicken sandwich in the U.S.

Beyond Meat noted in an email to CNBC that its chicken tenders, based on the Faba bean, came out just as restaurants were experiencing shortages and price hikes on the supply side and consumer demand was skyrocketing. It added that a few restaurant companies, Dog Haus and plant-based chain Next Level Burger, already are offering the tenders within sandwich menu items.

As chicken prices rise and more Americans embrace a “flexitarian” eating style, meatless quick-serve restaurants that make their own proprietary plant-based chicken analogues may be poised to make big profits. For example, the soy-based “chickn” that Bradbury ships directly from Taiwan cuts costs, circumventing the need for suppliers like Beyond Meat or Impossible Foods, and keeps the price point reasonable.

His commitment to make vegan food available to the widest audience possible has been a core mission of Project Pollo since day one, when it launched the first menu item, the pay-what-you-can Project Pollo sandwich. The suggested price, $5.50, covers the cost of sandwiches for two other customers in a pay-it-forward gesture of community goodwill. Astoundingly, 90% of customers not only pay the suggested price, “but actually pay more,” Bradbury said. Every quarter, Project Pollo adds up the profits on these sandwiches to make a donation to one of the many animal charities it supports.

As the price of actual chicken has risen, and Project Pollo staffing and operations capacity increase to open more than twenty locations in the coming year, Bradbury remains committed to keeping his prices affordable. “If anything, our prices will come down,” he said. Average sandwich prices on Project Pollo’s menu are $7 to $8.

Local ‘lines down the block’ for fake chicken

Across the country, vegan quick-serve outlets are cutting out the middleman and keeping their carbon footprint low by making their own plant-based “chicken” in-house.

On a warm summer afternoon in Minneapolis, the smell of fried goodness wafted through the air as dozens of people lined up down a row of brick storefronts for the grand opening of Herbie V’s Fried Chicken. Launched by Kale and Aubry Walch — a brother-sister duo who opened the Herbivorous Butcher, the nation’s first vegan butcher shop in 2016. (The Walch siblings recently won a protracted legal battle with food giant Nestle over the trademark The Vegan Butcher.)

The all-vegan fast casual cafe features the kind of comfort foods normally eschewed by strict herbivores. Think fried chicken, fries, and malts in flavors like Strawberry Shortcake. (The apparent secret to the creamy, dairy-free malts: oat-milk ice cream.) Despite embracing the term “vegan” in their offerings, Kale Walch — like Beyond Meat and Impossible Foods’ executives, and Project Pollo’s Bradbury — hope “to bridge the gap between the plant-based and the omnivore communities” rather than cater to a specifically vegan demographic.

Minneapolis vegan comfort food restaurant Herbie V’s Fried Chicken was launched by Kale and Aubry Walch, the brother-sister duo who opened the Herbivorous Butcher, the nation’s first vegan butcher shop in 2016.

Sarah Chandler

Walch’s lack of formal culinary training didn’t deter him from embarking on “a crusade for a better chicken recipe” as he experimented in his butcher shop with “a hundred different things,” finally winding up with a soy-based product that harnesses the secret ingredients of vegan buttermilk, apple cider vinegar and a blend of herbs. “There was a lot of time for R & D because of the pandemic,” he said.

The new cache of local vegan influencers should not be underestimated. At the Slutty Vegan in Atlanta, you might spot athletes like Shaquille O’Neal and Colin Kaepernick, along with musical icons such as Common and Snoop Dogg, queueing up for a taste of the Chik’n Head sandwich, a plant-based chicken tossed in buffalo sauce, slathered with vegan ranch and coleslaw on a Hawaiian bun. Rounding out their menu is plant-based burgers and sandwiches with blush-inducing names like One Night Stand and Hollywood Hooker.

“Most of our consumers are meat eaters,” said Pinky Cole, CEO of The Slutty Vegan, by email. “My core audience is meat eaters. I’m intentional about that. We’re not here to pressure anyone to commit to a full vegan diet; we want to show them that eating plant-based doesn’t have to be boring or unappealing,” Cole insisted, “We make veganism cool.”

Ultimately, the line never lies. “All of our locations have a line down a block. That tells me that obviously we’re doing something right,” Cole said.

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