Beyond Meat, Inc. (NASDAQ:BYND) Q2 2023 Earnings Call Transcript

Peter Saleh : Thank you.

Operator: Our next question will come from Ben Theurer Barclays. Please go ahead.

Ben Theurer : Good afternoon, Ethan and Nubi thanks for call and so for clarification. I wanted to dig a little deeper into the food service in the U.S. And it kind of feels like it was like that area where we expect a lot of growth with some of these announcements back in the past. Yum!, McDonald’s and so on. But it kind of feels like it’s not taken off and sounds like a level of these mid-teens somewhere on a revenue basis. So it doesn’t really feel like it’s delivering. Well, on the other side, the international piece has done significantly better on food service. So maybe following on some of these questions around consumer trends. How do these food service channels, why is it so different that the performance of food service international versus food service U.S., that would be much appreciated.

Ethan Brown : Sure. I think it gets to the consumer again in each market. So I think if we look at the EU, I think the consumer receptivity and readiness is there. And I think that our studio partners recognize that, and so that’s where they’re emphasizing. But I don’t think it’s a binary issue, right? I think that it’s a timing issue. And my strong view is if you’re in the U.S., you’ll see a resumption of activity among QSRs. In fact, I think that’s something that we feel comfortable about. So it’s very much part of the larger trends we just discussed. There’s been a there was prolific growth and excitement around the category. You go through that and you go through the kind of trough of what they say trough dissolution and then you come back up on the slope of enlightenment.

And I think we’re kind of in that area where we’re coming back out of it. I wanted to get through this quarter. I’m very glad it’s over. I’m very glad to be in this quarter and for the balance of the year because I do think you’ll see some of that resumption of growth, not in any way what we had a few years ago. For the balance of the year, but modest growth, it shows we’re coming out of this, and that’s what I’m really looking forward to.

Ben Theurer : Okay. Thank you.

Operator: Our next question will come from Michael Lavery with Piper Sandler. Please go ahead.

Michael Lavery : Thank you. Good afternoon. I sort of want to ask almost the opposite of Ken Goldman’s question. I think that the health discussion is interesting and the study numbers are certainly interesting, but at least in the U.S., consumers overwhelmingly say that their primary consideration is taste. And even price and health benefits or health considerations are far behind. And so how can you continue to develop a better product? I think that’s in so many consumers’ minds, kind of the centerpiece the 9%, obviously, in fairness to his point is a lot, but is — can you give a sense of what may be ahead and how much more quickly product development could advance that might be the difference maker for at least a large percentage of U.S. consumers.

Ethan Brown : It’s a great question. And then Ken’s question is fair, and this is also — I think it’s the right balance you guys are trying to strike here and the 1 that we think about all time. So I would refer to that tasting table review of the dinner sausage, where we’ve always said our north star is — should be indistinguie. But I have heard this from others that the new sausage, what we call sausage 3, people enjoy that actually more than the animal protein equivalent. And our efforts will usually get into the part. So I think we are making strong progress there. I think if you look at the state product, and you hear that up, it’s absolutely delicious. You have such high levels of protein and I think less than a gram or gram or so saturated that so many benefits to it, but anyway.