Question

Analyzing Segment Revenue Disclosures from Quarterly Data
Beyond Meat disclosed the following in its Form 10‑Q for the first quarter ended March 30, 2019. The company had its initial public offering (IPO) in May 2019.
The Company’s net revenues by platform and channel are included in the tables below:

For Three Months Ended (in thousands)	March 30, 2019	March 31, 2018
Net revenues
Fresh platform	$38,806	$9,596
Frozen platform	4,512	4,748
Less: discounts	(3,112)	(1,568)
Net revenues	$40,206	$12,776

For Three Months Ended (in thousands)	March 30, 2019	March 31, 2018
Net revenues
Retail	$19,579	$9,288
Restaurant and Food Service	20,627	3,488
Net revenues	$40,206	$12,776

Two distributors each accounted for approximately 21% of the Company’s gross revenues in the three months ended March 30, 2019; and three distributors accounted for approximately 34%, 14% and 11%, respectively, of the Company’s gross revenues in the three months ended March 31, 2018.

a. Calculate the average discount given to customers for the two quarters presented.
Note: Round percentage (your final answer) to one decimal place (for example, enter 6.7% for 6.6555%).

Average discount for quarter ended March 30, 2019: Answer %

Average discount for quarter ended March 31, 2018: Answer %

b. What do we observe about the level of the discounts across the two quarters?
The level of discounts has (increased/decreased/remained) from 2018 to 2019.

c. Beyond Meat’s revenue grew tremendously between March 2018 and March 2019. Determine growth rates for each of the platforms and channels disclosed (Fresh, Frozen, Retail, and Restaurant).
Note: Round percentage (your final answer) to the nearest whole percentage point.

	Same Quarter Growth
Fresh Platform	Answer %
Frozen Platform	Answer %
Retail	Answer %
Restaurant and Food Service	Answer %

Answer 1

a) Average discount for the quarter ended March 30, 2019 is 7.2%

explanation: 1) the Gross revenue of 2019 is $43,318. (Fresh Platform- $ 38,806 + Frozen Platform- $ 4512 = $43,318) (2) Discount given to customers is $ 3,112. Average discount is calculated as = Discount given/Gross revenue*100= 3,112/43,318*100=7.184 (rounded off to 7.2)

Average discount for the quarter ended March 30, 2018 is 10.9%

explanation: 1) the Gross revenue of 2018 is $14,344. (Fresh Platform- $ 9,596 + Frozen Platform- $ 4,748 = $ 14,344) (2) Discount given to customers is $ 1,568. Average discount is calculated as = Discount given/Gross revenue*100= 1,568/14,344*100= 10.931 (rounded off to 10.9)

b) Observe the level of discount between two quarters

Ans:-

Eventhough the revenue growth has increased in 2019 to $ 29,210 in fresh platform ($38,806-$9,596), it is reduced to -236 in frozen paltform ($4,512-$4,748). However if we look at discount pattern, it has reduced to 7.2% in 2019 from 10.9% of 2018. It shows that more discount given in frozen platform i than the fresh platform.

c) Growth Rates:

Particulars	March 30 2019	March 30 2018	Difference in Revenue	% of Increase of Growth	Rounded off to nearest 2 decimals
	$ (in Thousands)	$ (in Thousands)	$ (in Thousands)
	A	B	(A-B)=C	C/A*100
Fresh Platflom	38,806.00	9,596.00	29,210.00	75.2718652	75
Frozen Platform	4,512.00	4,748.00	(236.00)	-5.23049645	-5
Retail	19,579.00	9,288.00	10,291.00	52.5614178	53
Restuarent & Food Service	20,627.00	3,488.00	17,139.00	83.0901246	83