In this file:
· Beyond Meat Looks Rich
· Beyond Meat Enters Oversold Territory
· Beyond Meat’s Stock Drops 40% In A Month And 22% In A Day. Will It Rebound?
· No One’s Talking About the 174% Increase in Beyond Meat’s Legal Costs
Beyond Meat Looks Rich
The company's a pioneer in plant-based meat, but competition is set to intensify.
Rebecca Scheuneman, CFA, Morningstar
Nov 1, 2019
Mentioned: The Kraft Heinz Co (KHC) , Beyond Meat Inc (BYND) , Kellogg Co (K) , Hormel Foods Corp (HRL) , Conagra Brands Inc (CAG) , The Kroger Co (KR) , Tyson Foods Inc (TSN) , Nestle SA (NSRGY)
Beyond Meat (BYND) is a pioneer in the plant-based meat industry. It offered the first burger to look and taste like meat, targeted to omnivores and sold in the meat case. Beyond was soon followed by Impossible Foods and several others. Maple Leaf Foods’ Lightlife brand and Smithfield Foods’ Pure Farmland brand have already launched similar products, with many more expected in the next year: Kellogg’s (K) MorningStar Farms Incogmeato, Conagra’s (CAG) Gardein Ultimate Burger, Nestle’s (NSRGY) Sweet Earth Awesome Burger, Hormel’s (HRL) Happy Little Plants, Kroger’s (KR) Simple Truth, and Tyson’s (TSN) Raised & Rooted burger, which blends beef and plant-based protein. Given the rapidly changing marketplace, we think it is too early to tell if Beyond’s first-mover advantage will result in a sustained market leadership position or if the onslaught of competitive products will challenge Beyond’s position. Until we have better visibility on the strength and durability of Beyond’s brand, we assign the company a no-moat rating.
We are optimistic on the prospects for the meatlike plant-based meat market, which provides a great option for omnivores seeking to increase their consumption of vegetables. We expect the primary growth driver to be the 20% of consumers willing to adjust their daily habits in order to benefit the environment. We assume these consumers will shift one fourth of their meat consumption, converting 5 points of ground meat market share to plant-based meats. We also assume a modest amount of ground meat share shifts to plant-based meats for health reasons. While Beyond Burger (70% of 2018 sales) has the same amount of calories and saturated fat as an 85% lean beef burger (and 5 times more sodium), the health benefits of Beyond Sausage are more evident, with lower fat, calories, sodium, and cholesterol than the pork equivalent. We expect the global plant-based meat market to grow to $48 billion by 2028 from $5 billion in 2018. We model Beyond’s market share increasing from 1.9% in 2018 to 6.5% in 2028, as meatlike plant-based meats gain a larger share of the overall category, and as Beyond’s brand continues to win with consumers, given its strong performance in taste tests and ongoing research and development investments.
Current First-Mover Advantage ...
No Cost Advantage Yet ...
Future Demand Uncertain ...
Beyond Meat Enters Oversold Territory
Zacks Equity Research
via Yahoo Finance - November 1, 2019
Beyond Meat, Inc. BYND has been on a bit of a cold streak lately, but there might be light at the end of the tunnel for this overlooked stock. And for technical investors there is some hope when looking at BYND given that, according to its RSI reading of 25.10, it is now in oversold territory.
What is RSI?
RSI stands for ‘Relative Strength Index’ and it is a popular indicator used by technically focused investors. It compares the average of gains in days that closed up to the average of losses in days that closed down; readings above 70 suggest an asset is overbought, while an RSI below 30 suggests undervalued conditions are present.
Yet Beyond Meat’s low RSI value isn’t the only reason to have some optimism over a coming turnaround, as there has been plenty of positive earnings estimate revision activity as of late. This is especially true when investors take a deep dive into some of these estimate revision stats and recent changes to Beyond Meat’s earnings consensus.
Over the past two months, investors have seen 4 earnings estimate revision move higher, compared with none lower...
Beyond Meat’s Stock Drops 40% In A Month And 22% In A Day. Will It Rebound?
October 31st, 2019
Beyond Meat (NASDAQ: BYND), a producer of plant-based meat, saw its stock price tank by 40% in one month (October 2019). Of this, about 22% of the drop in the stock price was witnessed in a single day – 29th October 2019. Such a sharp drop in price in a short span for a company that had a stellar IPO earlier this year, was driven by multiple factors such as analysts downgrading their price estimates for Beyond Meat, expiry of the lockup period for early stage investors, and increasing competition. However, better than expected Q3 results, increasing tie-ups with established food chains (McDonald’s, Dunkin’, etc.), and an improved full-year outlook are a few of the factors that could see the stock price rebounding in the next one year, with Trefis estimating it to reach $128 per share.
To understand how the stock price has fluctuated and the factors driving it, you can refer to the Trefis interactive dashboard – What Drove A 40% Drop In Beyond Meat’s Stock In October 2019? Where Is The Stock Headed From Here? You can alter the key assumptions to arrive at your own estimate for the company’s stock price. In addition, here is more Consumer Staples data.
A] Why Stock Price Declined? ...
B] Valuation ...
C] Conclusion ...
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No One’s Talking About the 174% Increase in Beyond Meat’s Legal Costs
· Beyond Meat’s Q3 results showed a marked increase in legal costs.
· The firm’s upcoming lawsuit with Don Lee could have far-reaching financial consequences in the year ahead.
· These factors could place further downward pressure on the stock.
Laura Hoy, CCN
October 31, 2019
It has been a whirlwind year for Beyond Meat (NYSE:BYND) investors. BYND stock produced monumental returns following its May IPO; then despite turning in a 250% revenue increase in the third quarter, BYND stock lost 20% of its value when its lockup period expired.
With Beyond Meat stock trading at under $85 per share, many believe the worst is over for the plant-based burger maker. However, although the headlines regarding the firm’s Q3 results were mostly positive, long-term investors may want to have a closer look at BYND’s financials before deciding to ride out the turbulence.
Beyond Meat’s Expenses Skyrocket
According to BYND’s income statement, the firm’s ‘restructuring expenses’ have increased by 174% over the past three months. Beyond Meat set aside $2.3 million for restructuring expenses in Q3, bringing the total for the year up to $3.5 million. To put that into perspective, BYND’s ‘restructuring expenses’ in the third quarter totaled more than half of its net income. Right now, they make up about 8% of the firm’s overall operating expenses— that’s double the impact they had in the year-ago quarter.
What makes these ‘restructuring expenses’ so important is a footnote at the bottom of Beyond Meat’s quarterly results that defines them as “Primarily comprised of legal and other expenses associated with the dispute with a co-manufacturer with whom an exclusive supply agreement was terminated in May 2017.”
Beyond Meat’s Don Lee Dispute ...
Court Costs to Come ...
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