In this file:
· Beyond Meat dives after lead underwriter JP Morgan downgrades: ‘Beyond our price target
· Beyond Meat short sellers lose more than $400 million as stock rockets higher
· Beyond Meat stock may be a gigantic bubble
· Beyond Meat introduces new, meatier burger patty
· Beyond Meat shares continue hot streak, jumping as much as 34% to all-time high
· Beyond Meat is launching a ‘meatier’ version of its plant-based burger
· Beyond Meat CEO: Bring On More Orders
Beyond Meat dives after lead underwriter JP Morgan downgrades: ‘Beyond our price target’
· “We believe the company’s growth opportunity, strong management, and near-term ability to post financials that exceed Street expectations are balanced by elevated valuation metrics,” J.P. Morgan said.
· “We remain highly favorable to the total addressable market for alternative meat and Beyond Meat’s role within it,” the firm said.
Michael Bloom, CNBC
June 11, 2019
J.P. Morgan downgraded Beyond Meat on Tuesday, after the company’s stock surged more than 600% from its initial public offering price of $25 through its high on Monday.
The firm, which was the lead underwriter for the red hot May IPO, downgraded the stock to “neutral” from “overweight” and kept its price target of $120. The alternative meat company reported stronger-than-expected earnings last week — its first report since going public.
The stock is “beyond our price target,” J.P. Morgan analyst Ken Goldman said in the note to clients. The share price has already exceeded the price target of every analyst on Wall Street and short sellers have lost more than $400 million betting against the plant-based burger maker’s stock since it went public, according to research firm S3 Partners.
“This downgrade is purely a valuation call,” Goldman said...
Beyond Meat short sellers lose more than $400 million as stock rockets higher
· Those betting against the stock have lost $398 million through Friday, according to S3 Partners.
· Beyond Meat surged 21% in heavy volume on Monday, finishing at $168.10. The stock is up almost 600% from its IPO price of $25 per share.
· Citron’s Andrew Left told CNBC he covered his short on the stock at $90 as it rallied.
Thomas Franck, CNBC
June 10, 2019
Short-sellers lost $398 million betting against Beyond Meat through Friday, according to research S3 Partners. And those losses got bigger on Monday as the stock surged yet again.
The shares jumped 21% on Monday, following a 39% surge on Friday. The stock is up almost 600% from its IPO price of $25 per share in early May.
Short sellers including Citron Research’s Andrew Left moved to cover bets against the alternative meat company. Covering a short entails buying the company’s stock to prevent further losses. When that happens en masse it can cause a phenomenon known on Wall Street as a short squeeze. Squeezes can be exacerbated when a the number of floating shares is small, which is the case with Beyond Meat
Left told CNBC on Monday that he covered his short on the stock at $90 as it rallied, protecting him from further loss. The stock was last trading at around $169.
Left had said on May 17 when the stock was trading between $85 and $90 that the hype around the plant-based meat substitute company had sent its stock too high.
Beyond Meat “has become Beyond Stupid,” Citron Research said on May 17, before he covered. “Most heavily traded retail stock on Robinhood, market cap now bigger than industry, and superior competitor coming to market soon.”
Though Left predicted that the stock would eventually fall to $65, Beyond topped analyst expectations last Thursday, when it reported its first financial results as a public company.
“I know a short set up when I see one,” Left said in an email to CNBC on Monday. It’s a good product but with a “ridiculous valuation considering it is the food business...
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Beyond Meat stock may be a gigantic bubble
Brian Sozzi, Yahoo Finance
June 10, 2019
The air is quickly filling into the balloon that has become Beyond Meat’s stock price. If investors aren’t careful with the stock right now, it could prove as unsettling as scoffing down a raw Beyond Meat plant-based burger.
What goes up must come down, cautioned TD Ameritrade Chief Markets Strategist JJ Kinahan on Yahoo Finance’s The First Trade. Kinahan said he gets worried anytime a stock goes up so fast in a straight line as Beyond Meat (BYND) has done since its May initial public offering.
Kinahan noted that Beyond Meat was one of the most popular stocks bought by TD Ameritrade’s retail clients in May. Indeed, investors continue to show little hesitation to eat up Beyond Meat’s stock this month. The faux meat maker’s stock exploded 28% on Monday on news a new “ground beef” product would be available for the first time at a Boulder, Colorado, location of Amazon-owned Whole Foods.
That insane reaction (it’s faux ground beef, people) by investors follows aggressive buying last week post better-than-expected first quarter earnings. Mr. Market came away impressed with Beyond Meat CEO Ethan Brown on his first earnings conference call with the Street. Moreover, Brown flat-out denied it would have trouble meeting consumer demand due to production bottlenecks.
Beyond Meat’s market cap now stands at an eye-popping $10.3 billion despite the company never turning a profit...
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Beyond Meat introduces new, meatier burger patty
By Danielle Wiener-Bronner, CNN Business
June 11, 2019
New York (CNN Business)Beyond Meat is upgrading its meatless burger patty.
The plant-based protein company said on Tuesday that the new version of its flagship product, which starts hitting grocery shelves this week, looks, tastes and cooks even more like beef.
The improved patty uses coconut oil and cocoa butter to create a marbling effect to make the patty's texture mimic real meat more closely. It also uses apple extract to help the the product brown like meat when it is cooked, and it uses a different mix of ingredients, including mung bean and rice protein, in addition to the original patty's protein from peas.
Beyond Meat (BYND) is striving to create products that are indistinguishable from beef, pork and poultry for consumers who like meat but want to eat more healthfully and reduce their impacts on the planet.
The new burger "is a stop along that way," Beyond CEO Ethan Brown told CNN Business. "It's certainly not the end game." Beyond's competitor, Impossible Foods, came out with an improved version of its own burger patty in January.
For Beyond, the strategy means occasionally pulling products. The company recently discontinued its frozen plant-based chicken strips as it improves the recipe. "It's part of our philosophy and our approach to innovation that we're going to be constantly iterating," Brown said, adding that the company is always working to make the flavor, aroma, appearance and texture of its meat alternatives more realistic.
Brown may be looking for improvements, but consumers have been happy with Beyond's products so far. Beyond's first-quarter sales, which totaled $40.2 million, spiked 215% from the same period a year before, the company reported last week. Impossible, which doesn't release exact sales figures, says its sales have spiked 50% since the launch of its new patty.
Investors and mainstream restaurant chains have taken notice of the trend.
Beyond had a wildly successful initial public offering last month. Since then...
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Beyond Meat shares continue hot streak, jumping as much as 34% to all-time high
· Shares of Beyond Meat jumped Monday morning, continuing the stock’s unusual surge after its successful public market debut.
· The stock has risen more than 520% since its IPO.
· The company reported its first-quarter results Thursday.
Amelia Lucas, CNBC
Jun 10 2019
Shares of Beyond Meat moved higher Monday morning as the stock continues to exceed expectations following one of the most successful public debuts so far this year.
Beyond shares jumped as much as 34%, hitting $186.43 per share — a fresh all-time high, and well above its initial public offering price of $25 per share.
Since it began trading publicly May 2, the stock has soared more than 560%. It now has a market value of about $10 billion. The name’s unusual surge has made it the target of short sellers.
Last Thursday, the company said demand for its products drove revenue up 215% to $40.2 million, but it posted a net loss of 14 cents per share on a pro forma basis. It is forecasting full-year revenue of more than $210 million, although analysts believe that the projection is conservative...
Beyond Meat is launching a ‘meatier’ version of its plant-based burger
· Beyond Meat is launching a “meatier” version of its plant-based Beyond Burger in stores this week.
· The new formula, which more closely mimics the texture of beef, comes as Tyson Foods and Nestle prepare to launch their own plant-based meat alternatives.
· Retail makes up roughly half of Beyond’s business.
Amelia Lucas, CNBC
June 11, 2019
Beyond Meat is launching a new, “meatier” version of its plant-based burger in stores this week.
Tuesday’s announcement comes as the $1.44 billion market for meat substitutes prepares for new entries from companies like Nestle and Tyson Foods.
The newest Beyond Burger formula includes a mix of proteins — pea, mung beans and rice — so that the vegan burger qualifies as a “complete protein” with all essential amino acids. The vegan burger will also have a slightly different texture as a result.
Cocoa butter and coconut oil are used to create a marbling and texture that more closely mimics real beef. The latest iteration of the patty also includes apple extract that changes the color of the plant-based meat substitute from red to brown when it’s cooked.
Retail makes up roughly half of Beyond’s business, accounting for $19.6 million in revenue during its first quarter. Retail sales have more than doubled in the last year. Beyond’s food service revenue has increased by 491% from a year ago, thanks to restaurant chains like Carl’s Jr. and Del Taco adding Beyond to their menus.
Investors have driven up Beyond Meat’s stock price, making it the most successful IPO of the year. As of Monday’s close, the stock has surged 572% since its debut last month, giving it a market value of $10.1 billion.
However, ahead of Tuesday’s announcement, shares of Beyond Meat were trading down nearly 12% before the market’s open after J.P. Morgan downgraded the stock. The firm, which had been the lead underwriter for the IPO, said Monday’s stock closing just shy of $170 was “beyond our price target” of $120. Tuesday’s sell-off put shares at around $150.
The company expects its new Beyond Burger will be available by the end of the month in all stores nationwide that carry Beyond Meat products. Product pricing wasn’t immediately available.
This isn’t the first time Beyond has tweaked its formula...
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Beyond Meat CEO: Bring On More Orders
By Pan Demetrakakes, Food Processing
Jun 10, 2019
Beyond Meat says it is in a position to meet any new restaurant orders while its chief rival in the analogue-burger market is struggling to catch up with current demand, CNBC reports.
CEO Ethan Brown made the statement to stock analysts at the first earnings conference of the plant-based meat company, which just had a wildly successful IPO. “I don’t see any material obstacle, and I don’t see any manufacturing obstacle to being able to, in the appropriate amount of time and the right structure, take on many of the largest QSRs [quick-service restaurants] out there,” Brown said, according to CNBC.
Impossible Foods, Beyond’s major independent rival, is scheduled to have its product on the menu of Burger Kings across the country by the end of the year. Impossible, which is still privately held, has added shifts and production personnel, and is planning an expansion of production facilities, in an effort to fill demand at Burger King, White Castle and other customers.
Brown’s remarks were possibly aimed at McDonald’s...