Beyond Meat’s ‘day is not done’ with transforming US fast food

Beyond Meat (BYND) CEO Ethan Brown joins Yahoo Finance Executive Editor Brian Sozzi to discuss his vision for the future of the company as it focuses on capturing market share and delivering quality products at a reasonable price.

Brown explains that his vision for Beyond Meat is for it to be a “global protein company that rivals, some day, in size JBS (JBSAY) or Tyson (TSN) or these large animal protein.” He emphasizes that the company is focused on social, health, and environmental factors, and adds, “our best days are ahead of us.”

Beyond Meat has capitalized on the move away from animal meat in both the US and Europe, garnering praise and endorsements from the health and nutrition communities. Brown specifically highlights how the brand’s nuggets and burgers are being offered in McDonald’s (MCD) locations across Germany.

While Brown sees more traction in Europe when it comes to fast food, he believes that “our day is not done here in the US.” He tells Yahoo Finance, “One of the things that did happen after we went public is a lot of companies came into the category, and they were less choiceful about the ingredients, less choiceful about the health benefits of their products. So as those companies go away and Beyond Meat continues to lead, we’re bringing, I think, consumers back.”

He expects to see a consolidation in the industry as a lot of Beyond Meat’s competitors start to run low on money. Moving forward, Brown says the company is focused on the most important thing — fundamentals. As the company focuses on lowering its spending, Brown says its debt “is not something that keeps me up.” He continues, “What I’m focused on is continuing to grow the fundamentals of the business. I’ve become a lean convert. I’m very interested in lean management and lean principles, and that’s helping us to strip cost out of our structure.”

“The promise that we made when we went into the markets is the promise we’re going to fulfill, which is there’ll be a day when you can have Beyond Meat at a price that is under that of animal protein. Today, the task we have is to make sure consumers understand how healthy this is, how great it tastes. But over time, you’ll see us also be able to address pricing globally,” he adds.

Story continues

For more expert insight and the latest market action, click here to watch this full episode of Wealth!

This post was written by Melanie Riehl

Video Transcript

I remember when the IP O happened.

There was this talk of coming out with fish and and all these other, uh, not strange product, but all plant based.

I mean, where do you want to be?

Where is this company?

A couple of years from now, Is it a portfolio of different products or you’re just squarely focused on beef.

Yeah, So I think my vision for the company remains absolutely the same.

And that is to be a global protein company that rivals someday in size J, BS or Tyson or these large animal protein.

And I think the difference between us and some of the companies you saw around the same time we went public is the social, the health, the environmental factors that propelled beyond meat to where it was when we went public are only getting stronger by the day.

And so my view is that our best days are ahead of us.

We’re able to capitalise not only here in the US on some of the benefits we’re getting from the health community and nutrition community, the endorsements we’re getting from them, but also in Europe, where climate is a much bigger issue.

So we have a big operation in Europe.

We’re selling to McDonald’s there.

We’ve got both nuggets in, uh, McDonald’s in Germany as well as our burger.

So tremendous opportunity, not only here in the US but also in Europe has the fast food opportunity in the US changed for a BM meat.

I think in Europe we’re seeing much greater traction with fast food.

But I do think that our day is not done here in the US, uh, with with fast food as consumers begin to really understand the health benefits of eating beyond meat as a plant based meat.

One of things that did happen after we went public is a lot of companies came into the category and they were less choiceful about the ingredients less choiceful about the health benefits of their products.

So as those companies go away and beyond, meat continues to lead.

We’re bringing.

I think consumers are Are they going to go away?

I mean, I, I keep telling you this all the time.

I mean, I go into whole foods.

I mean, there’s 1015 brands I never heard of.

They’re at the bottom of the freezer section.

I mean, they may or may not be meat.

I have no clue.

But I mean, they’re they’re they’re right there next to you.

When do they disappear?

So I think what happened is a lot of companies raised money on our evaluation two or three years ago.

They’re starting to run out of money today, So I think you will see a consolidation, uh, in in which is good.

I think you’ll see a consolidation in the category and you’ll see it beyond me.

Continue to lead.

There’s lastly, before I let you go.

And maybe this is a two part one is when is the company cash flow positive?

And then two?

I mean, there’s a lot of focus on how much debt you have, and when it comes due, I think it’s 2027.

What’s the resolution?

What’s the end game for that?

Sure, So I can’t give specific comments.

But what I can say is that we continue to focus on the most important thing, which is the business fundamentals and whether it’s the restoration of margin, whether it’s continued to bring cash use down, continuing to bring operating expense down.

Those are the things that are going to the business in the future.

The debt.

As as you know, there’s there’s there’s, uh, you know, restrictions that I have, that I can’t talk about it, But it’s not something that keeps me up like that.

What what I’m focused on is continuing to to to grow the fundamentals of the business.

I’ve become a lien convert.

I’m very interested in in lien management and lean principles, and that’s helping us to strip cost out of our structure.

The promise that we made when we went into the markets is the promise we’re gonna fulfil, which is there’ll be a day when you can have beyond meat at a price that is under that of animal protein.

Today, the task we have is to make sure consumers understand how healthy this is, how great it tastes.

But over time you’ll see us also be able to address pricing globally.

I’m talking in in a in a longer period of time where we’re not only making a health uh, uh, value proposition to consumer.

We’re making a taste value proposition, but we’re also able to out compete on a protein based on the long term fundamental economics of our business.

Good to see you.

I can’t believe it’s been five years since the IP O.

You still like the same guy and all the Associated Press photos.

It’s good.

It’s good to see you, Ethan Brown.

Good to see you.