In this file:
· Beyond Meat shares soar anew to bring post-IPO gain to 240%
· Beyond Meat Poised to Be More Profitable Than Tyson
· The No. 1 reason to become a vegan — it’s not about your health
Beyond Meat shares soar anew to bring post-IPO gain to 240%
Speculation that the company may sign up some big restaurant names is helping fuel the rally, says analyst
By Ciara Linnane, MarketWatch
May 7, 2019
Shares of plant-based-meat manufacturer Beyond Meat Inc. soared another 13% Tuesday, bringing the stock’s post-IPO gain to a stunning 240%, after Bernstein initiated coverage with a bullish outperform rating.
The company, founded by vegan Ethan Brown in 2009, raised nearly a quarter of a billion dollars last week to grow its line of plant-based meats, with shares rocketing in their public debut. Excitement about the deal grew steadily after it first announced plans to go public late last year and hit new heights during its recent road show with investors, leading it to increase the size of the deal and raise its price range a day ahead of pricing.
“Beyond Meat served its own burgers at the road show, and then they ended up raising the price range,” said Kathleen Smith, principal at Renaissance Capital, a provider of institutional research and IPO exchange-traded funds. “The deal has been incredible. One reason is that it’s the only pure-play company doing this and because there’s an expectation they may sign up some big restaurants as clients.”
Speculation has been fueled by the presence of Don Thompson, chief executive and founder of venture firm Cleveland Avenue, on the Beyond Meat board, said Smith. Thompson is a former chief executive of fast-food giant McDonald’s Corp., which he helmed from 2012 until his resignation in 2015.
“Restaurant chains are finding that they can draw customers just because they have this meat alternative, so that’s another appeal [of the stock’s],” said Smith.
Oppenheimer analysts led by Alexia Howard signaled their confidence in the company in a note to clients Tuesday that set an $81 share-price target, more than triple the IPO pricing level of $25. That target is equal to 13 times Oppenheimer’s fiscal 2020 sales estimate, versus the 20 times 2019 sales the stock is currently trading at, said the note.
“If the alternative meat category develops along a similar path to plant-based beverages (from 5%-15% of the market around a decade after the almond milk innovation turbocharged the category), then the total addressable market could be [approximately] $40.5 billion in the U.S. within a decade,” Howard wrote in a note to clients.
If Beyond Meat could secure a 5% share of that market — it has a 2% stake today — it would imply sales of $2 billion in 2028, compared with about $207 million this year.
Plant-based foods are more complex to manufacture than plant-based drinks, so the company may retain its competitive “moat” for some time, said the note.
“That said, Beyond Meat is up against Impossible Foods, which is staking out its turf in the restaurant space before launching into retail later this year, and larger players like Tyson and Nestlé are also looking to enter the U.S. market later this year,” the research note read.
Bernstein is expecting more than one brand to emerge as a winner, “although clearly staying ahead of peers in terms of taste and texture will be key, and other factors like Beyond Meat’s non-GMO status (a claim which Impossible Foods cannot make) could also help.”
Impossible Foods, the privately owned company behind the Impossible Burger that Burger King is selling, is Beyond Meat’s biggest rival for now, although that’s unlikely to remain the case for long. Other smaller players in the space include Boca Foods, Field Roast Grain Meat Co., Gardein, Impossible Foods, Lightlife, Morningstar Farms and Tofurky.
But the company also views traditional meat companies as rivals, including such giants as Cargill, Hormel Foods Corp., JBS, Tyson Foods Inc. and Smithfield parent WH Group...
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Beyond Meat Poised to Be More Profitable Than Tyson
Beyond Meat, the maker of the vegan Beyond Burger, launched its IPO last week; its gross profit margins surpassed meat industry giant Tyson Foods.
Kat Smith, Live Kindly
May 7, 2019
It’s been less than a week since El Segundo, California-based vegan protein brand Beyond Meat became the first of its kind to go public. According to estimates, it may be more profitable than Tyson Foods, the largest meat producer in the nation.
Beyond Meat’s IPO launched last Thursday, listed on Nasdaq as “BYND.” Initially priced at $25 per share, it closed its first day at $65 — a 163 percent increase in value. Countless news sources reported that the maker of the “bleeding” Beyond Burger had the biggest first-day IPO in nearly two decades.
Surpassing the Nation’s Largest Meat Producer
“The good news for BYND is that, while the company is still relatively small, it’s already showing signs of achieving economies of scale,” Forbes reports. “Gross margins turned positive for the first time in 2018. More impressively, at 20%, its gross margins have already surpassed Tyson Foods (TSN), the largest meat producer in the U.S.”
Tyson Foods previously held a six percent stake in Beyond Meat, which it sold ahead of the IPO. The major poultry brand aims to test its own plant-based protein later this year.
Beyond Meat’s Realistic Plant-Based Meat ...
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The No. 1 reason to become a vegan — it’s not about your health
As Beyond Meat makes IPO history, Ikea unveils meatless meatballs and Burger King rolls out the Impossible Whopper nationwide, here’s a look at the increasingly compelling case for giving up meat and dairy forever
By Catey Hill, MarketWatch
May 7, 2019
There’s real meat behind this argument.
Plant-based foods are one of the hottest trends in the food industry right now. Indeed, within roughly a week, plant-based-meat maker Beyond Meat became “the best performing public offering by a major U.S. company in almost two decades,” fast-food chain Burger King said that it would roll out the plant-based Impossible Whopper nationwide and furniture giant Ikea announced that it would upgrade the meatless version of its popular Swedish meatballs.
All that may cause you to assume more Americans than ever are now vegan, or at least vegetarian, but you would be wrong. Indeed, a 2018 survey from Gallup shows that only about 5% of Americans say they are vegetarians, a number that is unchanged since 2012. Meanwhile 3% say they are vegans, which is up from 2% in 2012.
But there’s evidence to suggest that more people should consider these diets, particularly veganism — which shuns all animal products including meat, fish, shellfish, dairy, honey and gelatin — for one big reason: It helps the planet, a lot. According to a 2018 study of 40,000 farms in 119 countries published in the journal Science, cutting out your consumption of meat and dairy might be the single most effective step you can take to reduce your negative environmental impact on the Earth. One reason: We get just 18% of our calories and 37% of our protein from meat and dairy, but livestock suck up 83% of our farmland and generate 60% of the agricultural greenhouse gas.
“A vegan diet is probably the single biggest way to reduce your impact on planet Earth, not just greenhouse gases, but global acidification, eutrophication, land use and water use,” lead study researcher Joseph Poore of the University of Oxford told the Guardian. “It is far bigger than cutting down on your flights or buying an electric car.”
What’s more, a vegan or vegetarian diet — or at least a diet with far less meat — might improve your health...
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