The company reported a net loss of $29.9 million on revenue of $87.9 million for 2018.
Since its founding in 2009, Beyond Meat has become one of the fastest-growing food producers in the country on the back of a "brilliant concept," Cramer said. The company's sales just about tripled year-over-year in the first quarter, which followed 170% growth in 2018 and 101% in 2017, he noted. Revenue grew 200% in the first quarter from the year-ago period, powered by new deals with Carl's Jr., TGI Friday's, and A&W Canada chains, he added.
Beyond Meat has yet to turn a profit and likely will not have positive earnings in the near future, Cramer said. But gross margin tells a more promising story. The company posted 20% gross margin in 2018, up from a negative margin in 2017. For the first quarter of 2019, gross margin came in at 25.6%.
"Honestly, I really don't want Beyond Meat to be profitable at this early stage in their life cycle. They should be spending money like crazy to build out their production and distribution and innovation to fend off enemies," Cramer said. "However, because the company's sales keep growing, their margins are headed in the right direction."Competition could be a headwind for Beyond Meat.
If a 17 price/sales valuation was high, what does Cramer think of the current 43 times?
out at 52, way too high.
Just me or that sounds like investment advice? wallyr17
Waiting for the soy to settle!!! Buts it's on my list.
mr_jettlife tryna make up for effin up Lyft
jimcramer thx. so i guess its opening at $50
Unhealthy, processed fake meat, no thank you.
Short Uber IPO on May 8th, going down fast.
Folks, it’s just pea protein and allspice. 🤯
jimcramer didn't you learn anything from Lyft
Once the multi-trillion $$$ national debt kicks in, it will cost $25 for a meatless burger! Don't think to even ask 'where's the beef' because it's no longer affordable by average, American middle class taxpayers!!!
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Source: CNBC - 🏆 12. / 72 Read more »