![]() ![]() Ninety-three percent of its customers are flexitarian. But the company’s main customer base is mostly meat-eaters. The pea-protein-based “bleeding” burgers and “sizzling” sausages are vegan. It has partnerships with major restaurant and fast-food chains, including Subway, Tim Hortons, Del Taco, Carl’s Jr, and A&W Canada, with, quite likely, even more on the horizon. Los Angeles-based Beyond Meat is on a mission to change the future of protein. What is the Future for Beyond Meat? Vegan Beyond Burgers are at Tim Hortons. Its stock is priced in pesos and listed on the Mexico Stock Exchange as BYND. Through the BMV Global Market, Beyond Meat also recently became available to investors in Mexico. “We appreciate that the secondary offering spooked many investors however, founder/CEO Ethan Brown trimmed only a tiny portion of his holdings, and we cannot blame anyone involved pre-IPO for locking in some gains,” he continued. Morgan said in a statement to its customers, “with cash-on-hand likely to exceed $300MM by the end of 3Q, another guidance raise potentially ahead, and the stock 40% off its high, we think the stock is appealing once again.”Īnalyst Ken Goldman added, “We see three primary reasons for renewed optimism: the potential to acquire new food-service customers, continued strength in measured data, and valuation.” It also lifted its target price from $188 per share to $189.Įxplaining its decision, J.P. ![]() According to CNBC, this was “amid a surprise secondary stock offering, a bigger than expected second-quarter loss, and a broader market sell-off.”īut American multinational investment bank JP Morgan has now upgraded Beyond Meat’s rating from neutral to overweight. Before the month was up, shares in the company had risen to $100.Īfter its initial success, shares began to fall in mid-July. It was initially priced at $25 a share, but ended up closing its first day at $65. Until then, the short sellers and bottom fishers will drive volatility.Earlier this year, Beyond Meat became the first vegan meat brand to IPO - with huge success. At best, this stock has hit bottom and will consolidate within the new range until more proof is available. The resistance at $20.25 to $21.50 is potentially substantial, and the company still needs to prove it can succeed on its transition. The Technical Outlook: BYND Is Ready To Reverseīeyond Meat’s shares are ready to reverse, but they may not confirm this move soon. ![]() “We are making solid progress in our transition to a sustainable growth model, one that emphasizes the achievement of cash flow positive operations within the second half of 2023 … Our fourth quarter results clearly demonstrate delivery against our strategy and plan, including solid sequential progress on margin recovery and operating expense reduction, and continued inventory drawdown.” said Beyond Meat President and CEO Ethan Brown. Regarding earnings, the company's adjusted loss came in at $1.05 which is $0.22 better than last year and $0.15 ahead of the consensus and sequential improvement is expected throughout 2023. This is bad news for Q4 but good news for 2023 and offset by better-than-expected performance on both the top and bottom lines. One takeaway from the results is that the top and bottom lines are impacted by strategic cost reductions that are helping to reduce inventory. Retail sales fell less in the US than in food service sales, but the opposite is true in the International segment. Weakness was roughly equal in the US and International segments, but segment results differed in each region. The decline is driven by a 16% decline in pounds sold and a 4% decline in price per pound. The company brought in $79.94 million in revenue, down 20.6% YOY but 550 basis points better than expected. Beyond Meat Q4 Results Beyond Expectationsīeyond Meat had a decent quarter despite the lapping of last year’s test runs with McDonald’s and KFC. Assuming this trend continues, the bottom for Beyond Meat is in, and the rally may be about to begin. This is above the current price action and the consensus which implies about 5% of upside. This is the first activity since the last earnings release and is noteworthy because the price target nearly doubled from $11 to $20. The post-release activity is sparse so far has picked up a single commentary which is from Mizuho and includes a price target increase. The analysts have kept this stock at Hold albeit a weak Hold despite the downturn in share price. ![]()
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