Buy Burger Maker Plant-Based Beyond Meat After Stock BYND Flames After Gains Q1?

[ad_1]

Beyond meat, BYND shares rose more than 36% Friday morning after the company published its first quarterly financial results as a public company after the close on Thursday. The plant-based meat stock is up more than 200% since its IPO and investors seem to be fed up with Beyond meat and its growth opportunities.

Let's look at the quarterly results, the outlook and the whole of society to see if it's time to buy Beyond Meat shares.

The fast pitch

Founded in 2009, Beyond Meat sells what it calls herbal meat. The company's portfolio includes burger patties, sausages (bites and spicy Italian) and beef crumbs for pasta and tacos. The pancakes are composed of four main ingredients: water, pea protein isolate, canola oil and refined coconut oil. Unlike some veggie burgers, Beyond Meat aims to mimic the taste, consistency and cooking profile of animal meat. And the reason is pretty simple: BYND sees its customers as meat eaters, not necessarily vegetarians or vegans.

The company's ability to attract meat consumers to its herbal offerings will be vital, as only 5% of Americans say they are vegetarians, with vegans accounting for 3%, according to a Gallup poll of 2018 – virtually unchanged from 2012 Beyond Meat hopes to attract consumers to what he calls "the future of protein", which is based on broader and more humanitarian goals. The California company's goal in El Segundo, California, is to create a "better way to feed the planet," according to its mission statement.

"By moving from meat of animal origin to meat of vegetable origin, we create a tasty solution that solves four growing problems attributed to animal production: human health, climate change, the constraints on natural resources and animal welfare. "

Q1 Overview and Perspective

Beyond the meat lost about $ 30 million in 2018 for a turnover of $ 87.9 million. With this in mind, the company's revenues for the first quarter of fiscal 2019 soared 215% to $ 40.2 million. This exceeded our Zacks consensus estimate of $ 38.66 million.

At the same time, the company reported an adjusted loss of $ 0.14 per share in the first quarter, which is in line with our estimates, but is slightly lower than the loss of $ 0.13 per share for the same period. the previous year. Overall, the Company reported a loss of $ 6.6 million in the first quarter, higher than the loss of $ 5.7 million in the corresponding period of 2018.

Management expects Beyond Meat's revenues to exceed $ 210 million. This would represent an expansion of at least 140% over the 2018 fiscal year and exceeds the $ 205.5 million estimates announced prior to publication. The company has not provided any guidance on its results for 2019, but plans to achieve a breakeven EBITDA.

And after?

As we mentioned earlier, BYND shares skyrocketed on Friday morning after a surge after hours on Thursday. Beyond meat jumped nearly 40% to $ 137.10 per share, thanks to a much larger volume of transactions than average.

Going back a bit, the BYND share opened its first trading day on May 2nd at US $ 46. This represents an increase of 84% over the current price of the initial public offering, indicating immediately that the demand for Beyond Meat is high. The stock jumped 163% from the first day to close at $ 65.75 per share, which allowed BYND to stand out as one of the biggest hits of the first day for a company that collected more $ 200 million since the peak of the Internet bubble.

Shares have now increased more than 200% and the company has a market capitalization of $ 7.67 billion. The company's early success in the public markets makes it stand out from Uber Uber and Lyft LYFT. But can this continue for a company operating in a market that has not been proven yet?

Market

Beyond the meat is currently sold in around 30,000 grocery stores, restaurants and food establishments. The list includes Safeway, Publix, Kroger KR, as well as restaurants such as Carl's Jr. and Del Taco. The number of meatless burgers continues to grow as more and more restaurants and fast-food chains try to capitalize on what appears to be at least an increased consumer curiosity.

Society will probably have to continue to convince people of its wider humanitarian and sustainable development mission, because the products themselves are not really "healthier" than their traditional meat counterparts. There is a growing population of what are known as flexitarians or semi-vegetarians. That said, fake vegetable meats currently account for just over 1% of the overall meat market, according to the Associated Press. Some analysts suggest that this figure could reach 10%. Of course, this is only an enlightened assumption, and even if the market explodes, it will not be just Beyond Meat that will benefit.

Competition

In 2018, Beyond Meat captured about 2% of the alternative meat market, according to research firm Euromonitor. MorningStar Farms, owned by Kellogg, captured the largest market share, with 17%, with KFC's KHC Boca brand with about 4%. BYND's main rival, Impossible Foods, which should be released soon, has made its way into Burger King and many other restaurants. In addition to this, traditional meat industry giants such as Hormel Foods HRL, Tyson TSN Foods, Cargill and others are expected to roll out their own offer of herbal meat sooner rather than later .

The race could be launched to enter the meatless market. And it's not hard to imagine Starbucks SBUX, YUM Brands YUM and McDonald's MCD, selling a number of plant-based options to try to capture some of this early interest. However, the increased demand may be hard to meet for companies like Beyond Meat, which could be a problem.

Bottom line

Beyond the meat is currently a rank 3 of Zacks (pending) which has already seen its course soar. This is clearly a company on which many Wall Street have bet early, but this crazy race probably will not last forever without at least some hindsight. Nevertheless, investors might consider taking at least a small bite of the BYND title at the moment.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "More action news: it's bigger than the iPhone!

He could become the mother of all technological revolutions. Apple has sold just 1 billion iPhones in 10 years, but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $ 1.7 trillion market.

Zacks has just released a special report that highlights this booming phenomenon and six tickers to take advantage of it. If you do not buy now, you can get started in 2020.

Click here for the 6 trades & gt; & gt;"data-reactid =" 42 ">More action news: it's bigger than the iPhone!

Zacks has just released a special report that highlights this booming phenomenon and six tickers to take advantage of it. If you do not buy now, you can get started in 2020.

Click here for the 6 trades >>