How Are Plant-Based Meat Stocks Doing This Year?
Trefis Team, Contributor, Forbes
Apr 5, 2021
Our theme of Plant-Based Meat Stocks, which includes companies that produce plant-based meat and related vegan ingredients, has returned about 8% this year, outperforming the S&P 500 which is up by about 6% over the same period. Investors have been rotating out of high-growth stocks to more value names and this has benefited most of the stocks in our theme considering that they are largely consumer staples names that trade at below market multiples.
Within our theme, Tyson Foods has been the strongest performer this year, rising by about 15% since the beginning of January. The company, which is one of the world’s largest processors and marketer of chicken, beef, and pork, entered the plant protein category in 2019, with its Raised & Rooted brand.
Beyond Meat, a pure-play plant protein company, has underperformed, rising by just about 4% year-to-date, given the company’s higher valuation multiple. However, there have been some positive developments from the company in recent weeks, as it announced strategic partnerships with McDonald’s and Yum! Brands’ KFC, Pizza Hut, and Taco Bell restaurants.
Cereal and convenience foods major Kellogg, also a key player in the plant-based protein space, has been the worst performer in our theme, with its stock up by about 2% year-to-date...
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