Impact on the share: Beyond Meat deals with McDonald’s and Pepsi – new shine for Beyond Meat shares? | message
Shares in this article
• Opening of our own production facility in China
• Aggressive investments announced for 2021
• Paper failed to meet high expectations
The figures published on February 25, 2021 by the meat substitute product manufacturer Beyond Meat for the fourth quarter of the past fiscal year 2020 fell short of expectations. While analysts assumed a loss of 14 cents per share, Beyond Meat posted a loss of 34 cents per share. But partnerships with large corporations like McDonald’s, Pepsi or Yum! Brands raised hope among investors. An analysis of the information portal “Investor’s Business Daily” tries to clarify whether investors should now strike the BYND share.
Market growth for meat substitute products forecast
The market for meat substitutes is booming. According to a report by CNBC, according to estimates by the British bank Barclays, the market for meat substitutes will take up to 10 percent of the global meat market within the next decade and grow to over 140 billion US dollars – at the expense of the proportion of conventional meat. Not only since growth forecasts of this magnitude have more and more startups springing up, benefiting from the increasing interest in plant-based nutrition and substitute products. Large corporations are also jumping on the bandwagon and offering vegan or vegetarian products in addition to their existing products. And investors are also showing an interest in this trend, which can be seen, among other things, from the eventful IPO and the ongoing share development of Beyond Meat.
At the same time, Beyond Meat is pushing ahead in one of the largest hypermarkets in the world: On April 7, the company opened its first production facility outside the USA near Shanghai to meet the growing demand for meat substitute products in China. “The opening of our own plant-based meat factory in China represents an important milestone in order to be able to exist in one of the largest meat markets in the world,” said Ethan Brown, CEO and founder of Beyond Meat in an official statement.
The initial upswing is followed by disillusionment
In addition, the company is trying to follow up on Ethan Brown’s announcement when it releases its quarterly results. The latter reported that they wanted to invest aggressively in 2021 in order to get “from the niche market to the mainstream”. On January 26, 2021, Beyond Meat announced a strategic partnership with Pepsi to offer plant-based protein snacks and beverages. On this day alone, the BYND share listed on the NASDAQ posted an increase of 20 percent. In January as a whole, there was an increase in value of 42 percent. Two more press releases followed on February 25th, which were intended to underline Beyond Meats’ expansion plans.
A three-year partnership with fast-food giant McDonald’s, during which the burger patties for the future “McPlant”, a new plant-based burger at McDonald’s, will come from Beyond Meat. As well as a strategic partnership with the Yum! Brands, according to which plant-based Beyond Meat products will be included in the menus of the Yum! Brands KFC, Pizza Hut and Taco Bell. But the January euphoria evaporated, the increase set in and the level prevailing at the beginning of the year returned. The all-time high of $ 239 in July 2019 is still a long way off. The share is currently around 40 percent away from the 52-week high on January 27, 2021.
The damage is too great
The “Investor’s Business Daily” portal advises against buying the shares at the moment. The share is currently well below the 10-week and 40-week mark. With a price of around 40 percent below the 52-week high, the paper needs a certain amount of time to develop back into higher spheres and to form a new basis, according to the portal. While the increase in January looked for a short time that the value of the shares could consolidate again, the share quickly fell back again. All in all, the effect of this was weak, according to “Investor’s Business Daily”. Investors should keep an eye on the development of BYND paper, especially whether further deals can close the gap to earlier regions. But given the damage that the chart suffered, this should take a while, according to “Investor’s Business Daily”.
Philipp Beißwanger / editors Forex-news.com.net
This text is for informational purposes only and does not represent an investment recommendation. Finanzen.net GmbH excludes any right of recourse.
More news about McDonald’s Corp.
Image Sources: Sundry Photography / Shutterstock.com, Beyond Meat