Beyond meat, is the plant burger business really worth $ 1.5 billion?

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Beyond the meat

Beyond meat raised its price range before its US IPO on Wednesday, valuing the plant-based meat maker to nearly $ 1.5 billion (£ 1.1 billion) .

The American company, which has the player and environmentalist Leonardo DiCaprio among its investors, will now offer its shares between 23 and 25 dollars.

The decision to increase the price compared to the initial range of $ 19 and $ 21 indicates a strong demand for equities.

But beyond the meat is deficient and does not know when he will report a profit.

According to its latest financial results for 2018, Beyond Meat said losses were $ 29.9 million, slightly lower than the previous year, but over $ 25.1 million in 2016.

Beyond Meat has reported record losses since its founding in 2009 due to its investment in "innovation and growth".

In its IPO document filed with the US Securities and Exchange Commission (SEC), it was stated: "We may not be able to achieve or maintain profitability.

"We have suffered net losses each year since our inception so we may not be able to achieve or maintain our profitability in the future."

Beyond delicious?

By Dearbail Jordan

First of all, a disclaimer: I have not eaten meat for 30 years, which makes me the worst person possible or the ideal candidate to try a meatless Beyond Burger.

I find one on the menu at TGI Fridays in Manhattan where, curiously, the waitress who takes my order ensures that I realize that the beef patty is plant-based and not meat-based.

His question contradicts the strategy of Beyond Meat – the hamburger company – who asks retailers to stock their products with real meat, which is considered an option for all consumers, not just vegetarians and vegetarians .

The number of calories is also striking.

A Beyond Burger with cheese in a bread with all the trimmings contains 890 calories, just below TGI Friday's traditional cheeseburger, which contains 1110 calories, which proves that not eating meat does not mean that you're not eating meat. He is virtuous.

The Beyond Burger itself looks like meat – it's slightly pink in the center and actually has carbon marks on the outside, as it's been burning on a grill.

It's also surprisingly tasty and hearty. The texture is good and it does not have that chewy consistency as other meatless substitutes.

After, however, I feel slightly bilious. It could be because the hamburger is so thin that it makes me feel weird. Still, that does not stop me from trying out his other products, including beef-like hash, to perhaps recreate my mother's legendary spaghetti bolognese.

But it remains to be seen if enough people are willing to try Beyond Meat's products to justify this stock market valuation of 1.5 billion dollars before its IPO on Wednesday.

Beyond meat is one of the many so-called "unicorns" – which are private companies worth $ 1 billion or more – that sell their shares to public investors this year.

Despite high valuations, the majority of unicorn businesses that have or intend to start their business have not yet made a profit.

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This week, We Company, owner of the WeWork shared office provider, filed documents with the SEC to allow it to float. It has a private valuation of about $ 47 billion but its most recent losses have doubled to $ 1.9 billion.

Uber, the car pooling and food delivery company, is currently on tour to visit potential investors and build support for its IPO in May. He has set the price range of his shares between $ 44 and $ 50 each, worth up to $ 90 billion, but he has not yet made a profit.

Beyond Meat, which makes hamburgers and ground meat products, relies on meat eaters, vegetarians and vegans to grow its business.

He estimates that the global meat industry is worth up to $ 1.4 trillion.

Sales climbed to $ 87.9 million last year from $ 32.6 million in the last 12 months and $ 16.2 million in 2016.

Beyond Mr. DiCaprio, Beyond Meat also counts among its donors the founder of Microsoft, Bill Gates. The company will sell its shares on the New York Stock Exchange.