Breakingviews – Beyond meat gets an extra fire to be rare

NEW YORK / LONDON (Reuters Breakingviews) – Beyond the meat is on fire. The maker of meatless burgers has announced that the first quarter figures were only better than what he had previously been estimated. Yet, the stock, which had already quadrupled since its IPO a month ago, jumped more than 15% Thursday after hours trading. valuation at a whopping $ 6.8 billion.

The new producer who offers herbal artificial meat options for restaurants such as TGI Fridays as well as supermarkets has gone through environmental waves and healthy lifestyles, thus offering a product that is less greedy in natural resources and easier for The arteries. Revenues increased 215% over the previous year to $ 40.2 million in the three months ended March, and the company forecast revenue growth of 140% for the year.

Even taking this estimated business figure of $ 210 million for 2019, the last market capitalization is greater than 30 times the sales. It's too hot. The company, led by CEO Ethan Brown, is faced with the typical challenges of a food company, including the supply of pea, coconut and canola oils used to make burgers and beans. sausages, as well as the placement of its products in grocery stores. counter, not the vegetarian section – and the regulations.

Most importantly, there is a potential for massive competition from start-up companies like Impossible Foods, a supplier of Burger King, as well as large traditional meat companies like Tyson Foods, which prepares its own meat products, after giving up its investment in Beyond. Me to.

Yet it's easy to understand why investors are eating it for the moment. Beyond the meat is growing rapidly. The newly-opened company said it would return its adjusted EBITDA this year, earlier than expected. As the only piece listed on its market, it is also rare. Rare actions can remain in high demand at least while it is the only product of its kind on the menu.