Good:
· Big increase in operating margins, up to 17% compared to 5 to 8% previously. Highest ever.
· Was able to control operating expenses… efficiency and scalability are well under way.
· Rev growing at 28% yoy even if business in the fresh deli and hot bars still very much affected by Covid
· Gross margin only slightly down (30% vs 33%) because of higher beef price but was able to increase price
· Balance sheet continues to get stronger
Bad:
· No update about the up listing to Nasdaq. It does not seem to be imminent.
· No more sequential revenue growth QvQ. 10.4M rev this Q vs 11.1M rev last Q.
· Beyond Meat launching their own raw meatballs
· No update on Canada business
Conclusion:
· Still a good franchise growing defensive consumer business managed conservatively
· Lack of short-term catalysts
· Fair valuation at 18x EV/EBIT
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