Beyond Meat (BYND) 6 Aug 212021 Q2 Earnings call transcript

Welcome to the Beyond Meat, Inc. 2021 Second Quarter Conference Call. [Operator instructions] As a reminder, this conference is being recorded. I would now like to turn the call over to Lubi Kutua, Vice President of FP&A and Investor Relations. Please go ahead.

you. Thank welcome. and afternoon, Good

the me Meat's close. on Chief Officer Founder, and the section filed access Ethan Treasurer. release Relations earnings and Investor investor at documents today's Officer and are www.beyondmeat.com. are presentation to have Executive should Financial after now, Brown, second Phil quarter By press website market President, today everyone Joining Beyond company's These Hardin, and on of Chief available

differ information make please presented And of begin, federal statements. on Before risks materially management's described within note is securities in and of based of the the could today's that unaudited. on involve statements and we during beliefs this laws. are all current uncertainties call expectations call, to cause forward-looking meaning course from these These the those forward-looking and management the that may results statements actual

those measures. loss, which refer in and of net from filed the XX-K risks gross adjusted ended press non-GAAP report materially with adjusted that this of SEC to refer Form the statements any actual the on unfold. or report today, and discussion earnings on release to that actual financial the on company's ended the as XX-Q will EBITDA only Please profit as a issued with XXXX, differ detailed fiscal company's the XXXX, we note made that year today's Form SEC events call, forward-looking could on made to the be along today be updated for other implied annual filings are for today's with management results release, December Forward-looking comments X, will also statements not cause and quarterly in the July today. Please expressed adjusted XX, to are for the quarter call and

isolation provide not non-GAAP press substitute or financial to refer be we these investors, presented financial in to is information accordance information adjusted measures adjusted or measures. loss Please like considered comparable for investor that, intended presentation for reconciliation Ethan today's in of profits Brown. and call most to the to GAAP. adjusted GAAP turn useful this over for the to While as a now would the EBITDA, information believe I with the net the a presentation And release of with gross

you, everyone. Thank and good Lubi afternoon,

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toward previous with were In I U.S. the re-openings driven year-over-year, net by one terms for as net year-over-year. increase proliferated of our represented a the foodservice, guidance best ever the we sequentially, revenues quarter of within in revenues up orders, the sector. feature the which and and QX and was top record defining where COVID $XXX stockpiling, proud and XXXX stay-at-home of quarter generate sales, million, range XXX% induce of we excited globe. results, XX% in this For our am came result, XX% across

in internationally, while XXX%. we U.S., an saw XXX% Here increase foodservice of year-over-year, up net were the revenues

brand overall of Meat the the among among segments. according reflects with products track quarter XX% terms year-over-year NPD to operators, lodging small QSR category were the We same up bars, hold line restaurants, year-over-year one Beyond including for during signs and This continue venues, dollar XXXX. of in and QX position number data period. the regional in gains of share other channels in solid Sales pubs, recovery NPD increase, in to independent chains and

year pipeline expect term, at expect our within foodservice year-over-year moderate subside. the we in a growth albeit ago tougher business We to restocking near and to continue comp as laugh more rate

Sausage a as extremely expect COVID-XX near-term of distribution general a U.S. and Philz in in portion this of in a at throughout In several menu. related rates such rising infection demand. net Dunkin our growth in International increase solid continues their activity Pattie the mainly foodservice driven on COVID-XX rationalized addition, year-over-year economic dampening concerns and distribution other near-term, others. that broad barring Breakfast recurrence dynamics. Peet's in by among to innovation markets We our their reopening well In venues, around they was Western significant foodservice, remain our in as significant do of engaged XXX% business the Coffee revenue Brands and future Dunkin reduction have note around effect see could should stores. collaborations with also I We and did U.S. we

Finally, to it strategic relates we're looking activity excitement foodservice, QSRs. with with broadly large as to our forward

includes of X.X%. timing saw our will household at revenues increase Shifting should we XX basis request retail the the saw the household XX% metrics record on rates, increased According and of by could retail repeat we we other test remain X%. of which of QX supply brand a to a various key continued our and This cycled you robust. and in penetration, frequency before, pandemic. basis XXX points purchase these consumer of fueled notwithstanding retail, points considerations, basis at or the advancement buyer in a year-over-year launches XXXXs penetration, the sequentially, Consumer and XX to comparison decline shift revenues We moderate year-over-year note XXXX was repeat as based rates on partners, to X% week a As net buyer This IRI stockpiling onset which year-over-year year-ago to that a and were for on in revenues, as of basis, Panel increase ended June rate of up our U.S. frequency recall events. plan resurgence I increased COVID-XX, purchase and X% a versus SPINS XX%, to XX our rate increased period Data including XX%.

XX% and such remains Beyond XXXX July meat increased by brands all level to major data, the U.S., in In awareness plant Meat's a brand addition to survey among strong to highest brand the unaided metrics, highest these margin. level its based healthy according

distribution which position, towns of XX specialty and MULO category of velocity period. to the to hold top for and Links according exert in introduction XX SPINS near-term period Meat for consumer This well Beyond XXXX. MULO data including Total natural points our continue one solid per in does products XX% really the for XX, the takeaway of Beyond TDPs new the SPINS of bodes distribution, brand. continue natural stockpiling, basis sales strong growth were growth Overall or share across six the year-over-year, June and both total dollars sales Sausage from down the our X.X% Breakfast week long-term the for we broaden increased in during for period, momentum same well looking our investments, on products We and and the channels down In items for engagement. product specialty down will XX% outlets, progress with year-over-year continued outperforming and in similar brand a of accelerate data as as week that TDPs XXXX according growth as QX downward EU reflecting capacity which increased the U.S. to retail, the ended by products, industry the of the XX four brand net year-over-year. number a average Meatballs QX drive Beyond multi-outlet our category in TDP will increase pressure prospects and globally year-over-year, occurred same to the including however internationally revenues enable tune measured to and cycled XXXX's in scaling it of across stockpiling. the as backdrop we and footprint This year-over-year, consumer China outlet. operations point U.S. market the expansion, terms and slightly believe X% contributing optimization and of cycling omni to implement we We up per to international growth increase the with as was XXX% maintained our increased was cost driven

today. fourth with we time in major in quarter, retail for the product Europe the Beyond Meatballs launched and retailers first Switzerland, During offering available the Europe beginning in the Meat Netherlands Beyond marking

Woolworths, for our Meatballs expanding largest at all of launched offerings and first distribution as the secure also our to We retail breadth in as commitment one of Australia geographic Overall, a time, further our product retailers, the XX% increase of availability Austria sequentially stores, Australia's Australia, the well demonstrating our burger expansion of distribution Germany, strong our in U.K. Canada, footprint mainly of international or driven in saw across regions. key approximately and X,XXX growth by

recent provide on update me key highlights brief some initiatives. Let product a and now strategic

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for warm you, good the afternoon, Thank welcome everyone. Ethan and

the in Beyond this that I'm Let by saying excited to team company's moment the at Meat me join begin history.

of that changing work Beyond health, plenty to center benefiting way and its Although welfare. our us. to deliver there animal mission of Meat plate, is we positioned protein long-term global ahead fulfill I human consumer's hard of the uniquely believe is the climate of

global internally, of we meat-eaters this company to needs the structured view will our focus innovation fond our shareholders' prototypes, operational address analytical and that newest privilege and the our organization the convinced our that capital. around that way, innovation opportunity disciplined believing. marketing do our capital. stewards rigor each capture of embark a As an to globe. and discipline long-term With growing simultaneously of know I'm and financial tasting the after second excited this capabilities, I'm that, to along forward now and fiscally IT is helping our efforts, to of and let journey some Capitalizing in role my And getting me require the on the is infrastructure as investment results. opportunity appetites bringing production in teams sampling human to dive having into I you on the saying have way. of of team ensuring quarter I by we responsible better look of and being global

which retail international the The of second revenues quarter further primarily XXXX period. as foodservice the the captured offset Xrd, have increase up increased We in channel net primarily the in QX foodservice in ended an July was such was of XXth. demand volume XXXX, international calendar was quarter quarter retail per on a X% year in driven was sales easier year-over-year QX on $X.XX QX. all Taking holiday to year recovery later offset and across from consumer not to reminder, distribution Across sales flat customers, and total in due sales, levels retail growth prior compared from net year-over-year July customers, among a by of second in increased continued our QX XXXX. resulting U.S. comp quarter was of which of in approximately compared X% in our pounds sold volume total XXXX. by product behavior on channels, per million of which year-over-year the increased XXX% the been Total QX to these year basis. while COVID-XX, product U.S., volume increase more channels then which ago year-over-year channels. foodservice look of $XXX.X pound in year revenue to trade at closer a lower period, enough U.S. In of XXXX, sold XXXX, would X% The the by strong growth Growth increased in by reflecting economic As revenues in our activity, channel days per the previous significantly revenue days for across partially in to the distribution then lower representing the mix stockpiling is U.S. capacity the calendar and to high partially up XX.X%, certain ago. was total ago the sales net second Xth Net by second and XX% operating than reflecting international, net driven U.S. net In international. the in broad the a reopening and revenues later depressed XXX% revenue compared achieved reflects ended pound approximately retail restrictions year-over-year, of included to a later year-over-year. volume leading In primarily primarily U.S. foodservice, but June XXXX, shift. years, offset the of increased of loosening year-over-year, markets product discounts

we recent business. This growth QX. suspect in a QX, look we rate moderate foodservice some is was expectation attributable foodservice pipeline relative to to our loss expect volume a of refill, in tailwind QX distribution and to XXXX, in our comp channels tougher QX year-over-year As we of to in driven what by

certain some Delta signs believe prudent due cautionary sector. COVID-XX In return a variant, stance it's foodservice increases to stemming addition, out of of parts the infection a from to the call early seeing rates recent to we we're across that in more

driven XX.X% $XX.X of compared down XXXX revenues the million gross P&L or or such $X.X XX.X% million million $XX.X product no We as or is which of In activities the Gross COVID-XX profit adjusted revenues QX of net excludes associated Moving with $XX.X of by QX net of during XXXX. in to onset in XXXX. gross cost costs was to of net XX.X% profit. QX revenue. profits, XXXX repacking incurred QX million

decrease anticipated adjusted higher unit, which driven was adjusted are to higher by The basis gross So depreciation these are primarily and our reduced XXX points, of basis overhead QX increases points fixed gross margin XXX points and in XXXX same amortization XX.X%. basis are margin approximately expansion by per being at XXX growth. higher expenses, overhead and respectively. margin our and cost gross ahead depreciation With expense, our and and transportation the by initiatives future unexpected not fixed driven year-over-year for costs regard margin gross capacity

in partners these opportunity Although of with we on light the do that caliber term, seek and decisions scale foodservice in our we grow such maintain required. initiatives are to put we long-term pressure view near retail of margins as what strategic and considering our the and

which operations Turning revenues year the compared as approximately $X.XX expenses. in was marketing a second expenses, second to EBITDA was in in of OpEx. loss are negative increased revenues to XX.X% $X.X net per increase primarily of or in XX.X% in revenue head activity, loss and ago higher expansion overall $XX.X operating quarter as increased or included $XX million million were $X.XX expenses, of net quarter $XX.X adjusted our trial international XX.X% EBITDA well to the $XX.X operating million in selling or $XX.X the costs, QX compared our common level marketing X.X% of year-over-year to reflects Net XXXX, as the to share production growth The net XXXX. revenues million, and as expenses compared share. Total freight or million of capabilities, million net of count of second the common of period. support in Adjusted innovation, of quarter or net of XXXX, from per loss XXXX outbound

cash highlights. Turning balance sheet our flow to and

approximately as Our and was total cash July of was XXXX. billion XX, billion and cash $X $X.X equivalents approximately debt outstanding balance

to $XX.X July $XX.X capacity increase Xrd, the expansion the the in $XX.X to China in by totaled investments expenditures For continued ago U.S., for months XX, months related million, million to expenditures primarily capital was driven was in the year-ago XXXX, period. EU. XXXX, initiatives used cash in and the period, million operating production the equipment Capital compared facilities and to million six in year July six ended a compared $XXX.X net activities in

provide commentary about me near-term let outlook. our Finally, some

to to well infection Delta measures uncertainty, the continues alluded there I jurisdictions, demand impact levels. safety COVID-XX to As earlier, of and foodservice particularly and in potential on reimplementation channels certain the rates as be in related variant, customer as

see pace a XX%, the growth second to shipments infection factors second last anticipated in limited certain compared foodservice we our year-over-year to rates a had our net we moderate the XXXX. July in we a Embedded include days relative what affecting ahead in season. more $XXX QX the to increase particularly and for June, outlined saw million regions. shipping reasonable a year-over-year quarters. promotional third one for growing at than sequential first our of fewer is quarter, containment X that this Although Keeping the of five foodservice of in following seasonality These reinstituted reasons quarter are continued of in outlook pipeline earlier. in periods million, COVID-XX key during typical both to summer which generally be activity, of representing the in number XX% year, of guidance balance restocking assumes moderation year-ago, and of third guidance U.S. holiday, the expect international of the our are of business I some between third for This with quarter expect QX the obviously to revenues an more range of to in XXXX, $XXX we albeit

difficult in at with some uncertainty due And more it channels rates our operate increased major venues lastly Delta COVID-XX labor challenges. both finding and and the level to some more the signaling to customers of few added and recent fourth, we believe is a distribution near-term in to at our causing foodservice caution and that disposition. early full loss businesses a some are uptick measures warranted of in due Third, capacity, concern, international is given we have yet although foodservice also that, we've restrictive cautionary had seen not variant associated infection a signs U.S. reinstituting

invest new activities in robust our open investing in capabilities, preparation including future. growth in and up the marketing we're in long-term to capacity, to back Ethan to schedule operator product organizational hope profitability, In the and of your strategy, for a terms maintaining of for trial of includes spend continuing additional turn the we as which near to that, questions. over commercialize support in I'll talent call internationally, Thank we're you. stated, investing production in innovations, it investing With

from [Operator go And the of ahead. Robert Please Moskow with our Suisse. question first Instructions] line is Credit

Hi, be thanks for that question. and little they little know on clarity I to mean mean out Does could give dispositions pushing test in signaling the you want you cautionary customers that also what and cautionary more later? some measures. programs those a channel if delaying by the more a might QSR bit

the you, and Thank good Yes. Rob connect. to question for

that one is which of launches in, the postponed COVID, delta what the labor on we're impacted they requires phase think particularly comes least independent I year. was So think our and thought up if a we product some you what seeing be are is to confident of a of of there on little then this that shortage that there and out first like of conservatism, about that folks then outlook. And this was foodservice second, has operators their of on. sort the seeing bit side final at general and stock them variant part about less came until are two next things going the And one we is,

continued of labor So a then at moment. they the variant, about and of those two Delta I impact more a little what think, foodservice and the is in on bit creating seeing of orders the drag cloudiness the effects are being we're of conservative bit

simply our lack us, is and of for so the main guidance third And visibility. characteristic quarter the of

range. we And wanted so to that's be this new how offering

Yes.

would Is first because a than a sense. question, run it million $XX Okay how it to higher really lot don't part year, it International was like I than lot it quarter. was quarter, new a rate higher a per this at the at is be. looks makes And know it higher of Retail, it, last actually than lot forecast thought that it's I second my

And rate so real describe you segment? would how that run for the

mean I Retail. we really am mean I about was excited the saw personally International I Yes, growth strong.

I stores year-over-year, X,XXX etc. think Germany, Switzerland, we're added up XXX% Australia, in about

the of very I bit uncertainty that and a visibility the particularly on variant in and little of hold, that a sense thing and but like is sense obviously conservative think be about to promotions, demos the optimistic it Delta that's around Europe, again because things we lack that's in similar because pushed wanted than in of seeing as a I we're there view hopefully International that. out or just canceled Retail spoke one of temporary

suggest going to be I very do terms run us. overall the for case in So, of long-term, think in very, QX a but I rate, wouldn't that's promising

Okay.

So to that until you conducting or passes. Delta forward retailers have lot cautious activity XQ that might pulled of in maybe it's and fair? a we're Is these be little inventory going of some think possible more a

I think that yes. is probably caution right,

earlier about sure Yes. but are We behavior, caution. not the certainly the

Okay, all right, along. thanks, I'll pass

Yes, thank you.

Please line with Howard is your Bernstein. And next our from the proceed of question. Alexia question with

everyone. evening, Good

Alexia. Hi

Hi, there.

Nielsen my your is what Costco. business seeing noted have other Nielsen actually so, market as but and I you're And by versus somewhat deteriorated we first obviously data, or trends, they in the proportion what I of in IRI non-measured the about see channels SPINS US share is retail captured guess ask can like question because in we what all

from guys are what getting. and the are that drive share to much that point might would start Do competitor trends key And know we ramp-up summer. then, that? to a with a want stabilize the trends lacking we're any secondly, how deteriorating, anticipate obviously you about distribution you in big missing happened get just last at a sense So share we

Yes, then or second it the so good I'll the to turn over part of on answer Lubi that first question. and Phil.

let's you of from so kind step peak look stockpiling. a So, look second very and if are upward retail had have back we we at steady trends our in - consumers that on you a this then of And now, that. had share to at in November the trajectory begin of from, XXXX say as to take quarter activity

percent or XX.X% that I now. something think like So, are we

increase. of periods four-week And so eight consecutive

feel we're analysis competition on in where the the comments and quite So, household of in that actually maintained the do buyer a noted more pretty our majority the per rates, we they are We're buying on around we good terms doing share rates buyers are regard. finding I've has lot I and market of of brand brand well headed frequency a of our buyers that obviously impact in etc., about vast earlier as penetration the basis. household on and

the and of look some And competitors, you to so, occurring. you share those net we give more we're from are that up and on gaining then why a so see trends that's overall, strong but basis, competitors, balance obviously at, increase if

overall, the we if it's share. that at compare once So, normalize, market but trends, QX to that you look hard against XXXX to comp, continue gain

Lubi. is this Alexia Hi,

how your of second our So, in on data the terms much Scanner question, part of is of representative US sales. the retail

say up like or What that we is up IRI Nielsen. well, to as retail representative which be extent, US some and but subscribe certain that sales. much like are a into rolls roughly the probably DTC, or to club are representative there at of business. and pieces data, I The on lesser the it's retail XX% so stores in our certain there natural/specialty make large not stores lesser so a extent around subscribe probably for say retail either our is would of I SPINS can things then IRI our XX% that would XX% guys that obviously and direct-to-consumer, the I know things we US of So, or to, looking dataset are you captured street,

very thank it on. I'll Okay, pass much. you

and yet share we top is number increasing still have eight see, one hold this our share category where the is sheer week money four around consecutive being Alexia, hold retail. market amount spent I or market six our that is of actually activity if do marketing one found the that about the you we still this and in encouraging and four-week we still And the eight periods position things competitors. of of Yes, by products

we're So, marketing environment benefiting there's the market. of going a a overall, on, where more I of marketing bringing that impact consumers in from the a think in sense, competitive to lot it's

to in it from up, try consumers come repeat that keep obviously as brand. with our As long as we're our rates stick and more and benefit going going

what but doing space, a we're it's one well. competitive So, pretty

very you much. Thank

Yes.

Please Samuelson go next our Sachs. ahead. And question the is of with Goldman line Adam from

everyone. evening, Good Thanks. guys. Hi. Hi

be do So, of the environment a first about but if of production think inflationary seeing back cost logistics, and of on some just about lot the maybe you of in leverage, raw point might fixed environment I and us in moment, my production there packaging, in help into materials, thinking in the half out year? second those you hoping playing and at the can guess and the layering think fixed is new are both cost appreciating how your the and terms the in question Europe is just we side the quarter China the and cost of moving parts about how unit terms costs capacity freight,

Phil. take one. is I'll Hi, this that

amortization adjusted and in capacity margin really fixed driven overhead, we're factors. Transportation we are said and of remarks, as and remarks transportation. well pointed out, some are deterioration the depreciation the primary you really is margin we've in increases So, of we seeing said gross around as gross were we our so - two transportation by fixed and drivers our aware as piece, expecting, in, deterioration the

contributed. what are and of truck both is The cost the And how first raw the your is, second running network? of the those so is you

impact a didn't the side, major on the gross actually provide On materials our margin. ingredient

are in other prices quarter some gross but costs this the of were drive of are - they're total there factors kind margin that offsetting. and increases calculation We seeing so the

are on we where those. that's So

generate investing the leverage we're terms capacity. obviously fixed cost In to more of

and and bringing capacity start. We the of are Europe, in process both so in will we China on

some but very We incurring it to more the cost there about. more customers in we'll products as and equipment excited manufacture already online, countries, our to start create comes which local us are some to we're close ability the incurring gives also

those And internationally. those grow so new we're to markets and investments eager make

significant that on that framing it ties think how having regions Retail follow-up more you could foodservice and any the opportunities of into kind unlocks I just if on production And some Rob's and mean, in capacity, question both and do those local I earlier. to to is that potential just and quickly six over does of next a it going of is significant XX your a Or that be the sales bit sense the course what ramp? as I'm - having months? not - to of trying to

international us I this fully production incredibly for up important think it's to the market then and and get scaled. in

as being we that where instead to taking operation our level so full in EU get reason be so Jiaxing at both to had announcement supply another entire chains can production local and China to local we about the access there And just to and to actually now the palates. made much in doing the finished we're our begin the facility of we - and under process well that products to that is investing right local to now the tailor as goods

So, almost successful be while international having the in those not to were been having particular products we've pricing place tailored in markets without with able right markets. to that, good, and

chains the chain, and that Netherlands price build doing production to local the that Shanghai to a Jiaxing we're and will opportunity the supply as and products lines. in are the supply in as offer at we're I us much local competitive just taken one could So, more change access newer using not also local the it's efficiency work much higher to today to we've building consumer view allow a step tailored

those and essential. those benefits offer a that lower is us the absolutely then have two consumer pricing allow locations structure you'll to together lower So to coming cost in

look level, ultimately you our at too play of in as but it's is are, supply and protein, be in as animal able and access a as that on an products we protein the example important at where us I've way that for the expensive quality always said, to chain China piece in If China, of brand getting our our the as example strength menu goal it's underprice EU. well local allow really to to is to

a our it's on, probably that right call overall, when in because we'll now. give to So, much start yes, on benefit us pretty I on next it's more of be can big come motion to very color going in you to terms see that

it pass on. helpful. really I'll all Thanks. that's Okay,

Thank you.

comes our from ahead your go of the question And America. Please of line Bryan Spillane next with question. with Bank

Hi, afternoon, everyone. good

there. Hi,

Hi, Ethan I a - question. have questions. or response comment question is two your to to Alexia's to or Alexia's follow-up One just

stimulate that in marketing, competitor guess mentioned I the helping spending it's actually money category. in with the You the US,

more about of kind drink drive when in So leader, more soft it's the I category raises a spending the it they and it Is advertising? maybe guess, kind of marketing question. think category. you spends, Coke make As like

spend a the category have follow-up. you it were I to drive actually If more, would and

Did I to course think of product see and how with their my our when with - question. in can in product, then in taste the We marketing and messages. using we do Yes about those team they about that it's mean, you care have it the the get of It's a we and and our strong kind is see this so They to amplify need health think impact a a our I and incredibly impact. the hold do it market to it's marketing, in this they they that you? sense know of mean love start story - plaintiff I is important. people easy see so

to the other and at and that really but all ambassadors TV so And like that athletes national things haven't that yet stage, work start doing national and is with important, a and the doing when doing on the really time we ads we're taken step. is pieces right

distribution to quick to and with we've more very close got seen and It is and serve our as that tell see that billboards it. You've a limited you've COVID there do getting step-up gaining and of story some in another well you us TV going spend yes, can of take as there, we see out we're to restaurant marketing so completely things we're us. larger that. seen there of partners media, great behind some do has to and but buys, social out just you will a But go ton

just relates getting few to this Okay, product and of down And it great. the over the animal the the year sense. gotten as follow-up. - That course protein. or this price just to a We've the a question with of we've parity then cost makes times had

of in of then around and like the foodservice so, a that's mid-XXs where cost foodservice, on the point true assuming parity that Retail couple shelf of aspiration the and you've time. at period over as you does I just completed so when that. second questions what operators the still cost that you that the you've is it's consumer achieve the gross the a And over - is as part both of that And or I can One had guess, still retail. long down landed had is, just kind the get well for sort guess program be your to and ambition, of sees objectives just price margin

no, question. Yes, great

materialize chain well supply these here efficiency got to gains is So, on in or for well foodservice supply within throughput it think us negotiating in and but will folks general, reformulation, harder ton as I be least some early sure It well each so and fun less and to committed to but as able do think it's it's we're too on But program on some cetera. it's poultry probably working different maybe on that. in We've just is new as potentially much and to that, now to around first. protein now large And tell, will or let margin that has to the bit underprice the to our Lubi is first itself, we publicly platforms, three I way years things, some I through little and many probably is some messaging kind factors, harder, it be Retail local animal I at actually the and one what some one, space just Phil a see this and of later target, in for to in the so this both actually lines the this there's you'll marketing our answer but in one a is underway do as et And exciting. Retail, that because doing with category. it. a think, of year, going

unlock So, here give It's TAM that And the it's the type again years really in big here. out growth necessary the we one effort expect. gets in I is texture, think indistinguishable, aroma, and to to a three these the of get taste, of all us it's back get the so it's experience the entirety it the the right. get sensory or levers whether that appearance, flywheels that

consumer for Second, this make healthier sure is the understands them.

So think about, this it get to readdress it accomplish we're third that's those all three down, cost goals. consumer I better the and you than a work talked has doing after simply becomes that rare

All thank you. right,

you. Thank

And our Goldman from ahead. comes go Please next JPMorgan. question the from line of Ken

wanted the do I had but up this to date XQ to than to thanks. leading ago. up fewer the maybe And, just checked July that's how quick that days implication whole shipping clarification. leading quarter 'XX if five five that Hi, has the 'XX yet, I'm did misunderstanding or sales XQ year thing. shipping haven't If much on help I July retail in is days X. did more X, case, it that a the

Phil. Yes, I'll this that is take one.

first the timing when all, of more So the it's of quarter fell. about

overall, lead heavy days and pretty the to volume the number that of QX this different it's a just heavier into year so years. and up is period a not but fell fourth it's obviously prior So grilling promotional heavy versus

the would it number an not number that… days in be it's QX, actual option So of QX is of in in days difference

just… No, I

the way at of look it. rough size, terms to In very

been way would to at a this result that of rough just million kind last calendar the year in $X if timing. rough in about had the if looked very as year, very QX the of it shift same number we look be a at A is the period as QX Sorry.

early you're mid-summer So, of spring sort days trading days. a for off

us were that and mentioned you impact? And be? where little those give of my that's just I outside foodservice their But a a the get and would their clear. you, on then you U.S. Thank tell very size follow-up is, us distribution sense what can maybe bit the didn't losses sense

you I Ken, hope are it's hey Ethan. Yes, doing well.

quarter distribution you make losses space, from primarily from of international the operators COVID, about dropped the company, gained overall the over independent XXX,XXX. being process we were things those who of to So, In it the about out through sort didn't I think if distribution versus nature. menu to think or that XXX,XXX the due for during washed

So number it the from cost. was what understand big not we and that a was

Thanks Ethan.

Yes. Anything else?

That's it. Thanks.

some Ken, here. you usually right, you. zinger thank sort All have of

And go Jefferies. ahead. our from Please Rob next with of line the comes question Dickerson

Great, thanks so much.

I'm that. call QSR sorry, partnerships. a hosting got On within on but question. hopefully one little I had late Just the

you've previously more I go-forward towards this can maybe come a product some of end Ethan some partnerships, those through start to new some event. the maybe point a 'XX think probably in year recently of signed, that of you of see had said

on timing of just I'm kind if products? of speaking just McDonald's, you're of they've the kind of I'm take So how and in is kind if those curious assuming rollout And ramp an of for in year thinking kind broadly terms update of their any this that Internet? we example, there plant about of

Thanks Sure. No. for question. the

of global - cetera. I that we'll number change that working that this to and and if because are a do I of McDonald's you speak do And them think, them, et for COVID, step for from want unfair So plant of we're the to reasons talk in course look QSRs be different nature, then with at not universe to specifically. back large labor,

provided you're test like the very that coming out the general us change in in nature that's right will analysis don't innovation partners. will XXXX our big actually, or in you exciting, and new be that's uptick think and near that, like and that year seeing, rolling market from this is but of and I activity we're things term some something test or see what from plans to one things then

about I the the it's of partners in think sign but second don't the terms large of half QSR in So, contribute significant volume to excited seeing I'm year. the to in what those going I'm space, from

just one if quick Okay, I fair enough. And then one could squeeze maybe in.

see is rollout energy the that we or cetera? more starting is should et see be we In the terms acquisition that of new in to some retail, of of kind product, again, Chicken of kind that tightening something, done, that broader U.S.

week for really think that's launch us. in been then in within so with the in that we Canada. Tenders for almost with and I are was away, the And foodservice. a a The four-week A&W great we project Express, then think platform the in did out which plan. or good so I general broadly Yes, Panda right Nuggets launched, they poultry launched nationwide Chicken And sold a the just

on just that's that platform. beginning the so And

if see we're the to going now. number publicly, scaling going but we're don't more You're revenue from sign activity up platform number the to customers activity in it target that a year. our something to balance or poultry terms of of I and in is that of know

All much. Thank so right, you super.

Thank you.

And go question comes next from Rupesh Oppenheimer. of with Please Parikh our the ahead. line

and Good my thanks afternoon for question. taking

then of that your you the just distribution. provide color forward back more terms go to in wanted of going to of I loss loss I And you guess side? distribution. some have wondering of what drove Dunkin' QSR So a was some could any on if if I I guess learnings

were states so - relationship, still and I all, and part relationship. western think management and with review menu of they've the a that. of stores enjoying important a the to we're in right and all the western and and really There that do decided of Dunkin' was strong so Sure change the in there that first we the it's appropriately respect to note to changes make every

launches, to history time going at we QSR are, back to cycle our of menus. from look time you If off

same look, you issues a of pertained back foodservice. the really did case. And the if And is thing. I expect traction our in same years this example, think then, don't couple for so in And with any Hortons ago, Tim I

pork mentioned menu largest pace, added A&W distribution announcement the as recent most coming you'll referenced this crumble. just et sustained in beef COVID. item see Hut a and weeks, The so is to us we add permanent but continue Express think Again the and tie I've Panda of gets at healthy this few very QSRs example in cetera I and I provided sauce soon. QSR U.K. it with resurgence a to a for see don't Pizza back

three anticipated look more it is the launched launch talking of that on item which us product driving sales stores, consumers Z Peet's quote of number original and store in that when forecast the with lot the I product to going Sausage a from cheddar these outlets they doing since and across one and behind this hear customers Peet's what Gen in So want question and new back doing held when obviously a Caribou product product bacon we how on where reviewing two and those it. Caribou at and the this they're It's and came times I that very at and March. basically That's very the our from exactly business. you particular that's bringing steady Breakfast a in from partners Philz. the itself about, they is things lift product, the QSR data it's shared in Philz, from and to

that do expectation. sector. continue see in the That's off of things think Dunkin'. kind my part on to just us I the with So of occurs And cycling you'll and

question. And Great. just maybe follow-up then one

uncertainty the out there. give some Just COVID of it

guys are on the at potential of premium aggressive to there spending you back you we If R&D year, your Or should side? really remain how and spending the the cut SG&A that a in terms will look of still back you is expect in aggressive? half

part didn't hear I the of first sorry, question. I'm the

I the plan guys back year? SG&A in curious like the how you still aggressive so, to uncertainty do there. Yes half the out on just the with was of R&D side COVID be just and

in fundamentally for addressable So investment business anything doing. cetera. the total getting stronger is I believe that think in long-term or and gets trajectory we brand case fact And of what with back keeps et it the we're changed the the to, terms of do market

of OpEx a that areas in we've And at talent, are lot we a it OpEx new lot adding terms it costs innovation, going into of in the products. of lot want so look if had the which recently, in a of is increase you of people commercialization

the to so somewhat And an don't business. have transitory and health going are the think that, long-term we're because as impact again on we of throughout pandemic, these view doing issues keep we

So we'll investments. I continue to those think make

Okay, you. great. Thank

you. Yes, thank

Benjamin of And Theurer next from line our Please ahead. go the Barclays. question comes with

good Thanks, and evening.

two Just quick ones.

you all, lot where year. were the about of of lot last talked you're roughly rate doing first over at doubled in capital investments you've clearly So and a expenditure Asia, run a Europe, accelerated a we in over basically

the half in of shall deliver into XXXX we next have your you back program about think and CapEx should produced, ambition we if the product to and - the quarters. think further couple So locally about with how how we

little you're look Thank Just is like bit well, to you. understand as undergoing? going cash considering how currently the to flow investments a heavy

Hey. Sure, question. Ben, take that I'll this is Lubi.

sort over we've be generally to that, of that, terms growth you and we're we the right. it we're of in half in said said of see think And CapEx at year, to next at spend So, look type share - the - I a if you of the CapEx I like that capture that had this because the not going should the back pretty that, right we've first any of year. next looks couple our that we of us mentioned look capital-intensive half, year opportunity we've in expect of this is of - we're yes, try so through ahead roughly investing rate a fair guidance so similar you years, say around this far but business, what providing are in running would to double I what say

think you when of going so right. some we the about have things that on, And

right. of of sort sort that spending a always obviously expansion is capacity is we're there So against constant

that's up. LA our center coming going new that's We state-of-the-art house headquarters in have this innovation to new

we looking, I a close area. pilot at in currently facility think fully dedicated having are mentioned this previously production We somewhere this

So we towards And down the will be right. that. that this cost mentioned spending we've then - program

taking a wide very at options are potential all really looking We lens right. and

some we And initiatives additional require so, may capital a some from cost of perspective those down that at spending. looking are

chunk we we that capture we significant but that we couple XXXX guiding look of required be at we've this capital are you guys, intensive, next of for if us. expect on doing years an to pretty So XXXX. But generally clearly, are we'll to the to be opportunity a this wouldn't we said is for update the of didn't think see give when where be going ahead

Okay awareness distribution channels and then my question slide about second is brand your and the you're showing.

that as about talked So Could you Austria, those it in U.S. outlets a happening U.S. so we and is with that the as really little looks as fewer from, of bit also foodservice outlets sequential been international about in well understood, we domestic? Retail, International Australia, deceleration Retail But retail fewer I both saw exception what's in well was foodservice. saw piece that what's a Retail. elaborate like you U.S. the in U.K., as on the where that's going foodservice international Germany, segments? uptick in but the and coming clear there

Hey, one Ben. I'll take well. as that

right. look total growth at the if So you indoors, retail

is we in the decelerate, well see number today, doors from what U.S., to the right. because expect should a U.S. that think you we've growth of that we're total in said so are terms in distributed of the I rate that

retailers major here So we the are U.S. in in of much all pretty the

of distribution a continuing to offerings product U.S. the grow from increase the our number around store, per to as opportunity that real in continuing centers opposed doors, right. more perspective the So to

piece right. On the foodservice U.S.

right. continued Germany, retail talked seeing the international That So some in growth of Dunkin' Ethan for mentioned we Australia obviously about we The for markets part there. remarks, example. Switzerland, the driver that of his prepared was are in instance Austria,

pretty So there and in to international you'll saw I then right. continue robust growth think see foodservice what we

roughly a basis I quarter on this think lost right. a we total in doors sequential X,XXX

A lost of the them attractive. had we COVID - part were - think a we of some very right, of of art the primarily impact where looks COVID-XX in Canada rollout foodservice still is think, where is of of these reflective some we lot of that lingering long-term I still small of the just But operators. distribution that international distribution. look in independent

would we to there growth the over see long-term. So expect

adding into XX% but of points look at walk see when stores. obviously we not given I stores, a of being able just in the increase and And to did think to do distribution products that's point store. U.S., you aisle the new few number if the Beyond Meat total existing this just retail, introduce year-over-year Lubi's down see products you you any in

the poultry beef, that's pork to is retail total platforms, Meat innovate our focus and three distribution so and really Beyond side. and all significant opportunity for those And points dramatically across on the our increase of

Thank Ethan. you perfect. Okay, very much.

you. Thank

comes And the Please from Sandler. next question our go of Piper from Lavery line Michael ahead.

Good you. afternoon. Thank

Mike. Hey

level. not close the to XX% bridging you're near-term to that You but that in the gap in so magnitude also call volume the at used you you about that about from have run to some your manufacturing think way looking the sales but certainly capacity capacity basically? price the the facilitating on sales cuts rate increase anticipate, and Is would not of think range. XX% capacity, out that lift that right that How bump

it's good a No, question.

just throughput that these think on efficiencies form in the we're of programs layered what factors. should think those pursuing. I of of I about then to we're going through we're But have terms different So of a place the doing amount partnerships. that said driving it cost the And and all about is increased of combination preparing be down to for be top we U.S. other number in retail partnerships also to and

three implement that's in the cost to see a across you then the platforms and steady partners, And as you price, lower our then to we strategic those so how you offer this a structure that. innovation launches existing lines, on bridge new and and coming layer those improvement consumers at COGS program the the with down our on product ability

Okay, outlet. U.S. the follow-up helpful. And foodservice just a that's on

come. quarter trickle that calling and accurate this Dunkin at there already current some how is reflected specifically the there out maybe you're XX,XXX the update thinking to is all there got - guess or is You've is now. I just or

help - mind help can beyond? us for have XQ and in to trying Just you understand

our to to QSR I one partners, projects comment think the in additions large. the about, see balance other. we what on that's going saying But can't come from I or - on of something probably very anyway without think will of meaningful stores, way similar I terms in year was you're of activity of some earlier the

But in in guess already I or specifically what know that happened this you I is quarter has month just the last guess reflected XX,XXX? even

Yes. is. it Yes,

great, a lot. thanks Okay,

line our ahead. Research. Consumer go question last with Edge the Bell from comes of Ryan Please And

perspective we I to within everyone. Maybe meat in difficult for obviously question us competitors? for overall. can products alternative foodservice on of to relative track some just broad get your from a get to Hi, answer, reasonably of sense to but channel, you positioning stand give able foodservice would read your - you a to just a know within be U.S. competitive good as a us lot the share where harder share

terms the data, Yes, the business. which news good And distribution I NPD the We of and then the not and on the retail the our to broadline in side delivery. that's mean both position so on on side. the product foodservice one is of hold retail direct brand foodservice number and side

And And so seen the national global well not well the up then good of there, operators, growth both the there, and But down chains. the we've doing course chains larger and QSRs. and doing really we're regional independent or and it's business, there. street regional we're

KFC, partnerships Taco to the Pizza really the mean and to good look you you the Yum, in space. want assess. it's Lubi, I to have at even if So add that banners. Bell that. with way We're a if McDonald's, with well we positioned with partners Hut foodservice

entire sharing Ethan's I point that The space because an very it's to that Ryan that to to the picture thing add accurate only other difficult foodservice of would is right that, typically data get the part largest of for looking we're we're data, are referencing most your delivery customers. right. the Those QSRs which NPD and you type and with excludes direct at guys we're is the

our there of pursue to would with which and positioning and at is very distribution, really one feel which not the view, as data number which it's that hard the some share captured so we QSR growth continue in then the NPD there, good so the out be see, number. And to about to obviously, strategic least we said, data, the we're get that from large entire going do have we position primarily broadline but is market partners Ethan

Okay.

fair you in that you that to what you're that feel share. it's can from data say So that see gaining

we or number channels. We've so. share tracked certainly to hold And share gained continue within one the there NPD the

from far overall are you And the you're the you. a rate just frequency, comparison thank that in your is and to basis. picture one monthly of an terms gains When general relative how looking when penetration household question. purchase we're at I Great, and journey about seeing along you're like know of looking utilization. of penetration at the me one annual last household weekly sort repeat bigger the analogs, products that and meat broader thinking traditional

and where products of frames, I see provides that sort growth are would still different off strong You guys but quite for that assume there. time incremental it runway are from far in you traditional meat a

sure. Yes, take I This can that.

protein. and entire between look, still think gap based a wide pretty is category I the animal yes, there plant meat So,

right. And so to point, your

opportunity continue is means think a there to that us I what this that right, business. is to to grow significant

And are basis, versus last not a of the was up. at in quarters. weekly quarter it the pleased get household that but on saw looking in penetration tick quite this to increase updates, our we when a are continues see we we fact, sequential we So to certainly step-up that couple

that you with the right, business But when we're the there growth to overall animal the And market so trending. huge there really compare way in pleased is huge, still to is out protein. start a us

the So long-term. we over we to to capture want as can opportunity that much as of try obviously

you. Thank

Sure.

have no we the And in other this at questions time. queue

Great.

a few off remarks offer here. just we before sign I'll So

talking as everybody vaccinated. very foremost we're hopeful company the and we're with that will First about and get

revenue thing school ever, was margin. quite revenue us. a So significant the by a quarter, we our record so put This back last get We're and quarter to can and get to behind back certainly here way QX all business, at largest that in this company. encouraging

important commercializing the new So company, just these we're continuing our in that. maintain items to that of excited four and continue for mentioned retail milestones place to and in have exciting to And China I the in be about one that number infrastructure category the were and very service. then six Keep the to and really put products launches position. and of global the EU able partnerships in these advance in be top an

having where did we forward to offer market so more happening much exciting you conservative months, talking is so to hopefully there QX and more and again ambiguity clarity conditions things and guys look general broader these of we at because coming lot in in the this So, just economy a is. a few want many to look on and terms back

much. very So thanks

you. Thank

lines. today. That We participation that conclude for thank does a please your call Thank conference for you disconnect ask your and and your you you day. great have