They clearly prioritize innovation. We visited . Shares have fallen 10% since news onJune 25, 2020that McDonalds was discontinuing testing of a plant-based burger it dubbed the PLT made with a Beyond Meat patty in several Canadian markets. At its TTM FCF burn rate, the firm has enough cash to operate for just over 16 months before needing additional capital. However, one of the biggest deal breakers for potential. revenue grows at consensus rates in 2021, 2022, and 2023, and. Beyond Meat Inc stock (NASDAQ: BYND), a leading-edge food company that produces meat directly from plants an innovation that provides taste and texture of animal-based meat products along with nutritional benefits of plant-based products has seen its stock rise by over 160% from the lows seen in March 2020. Highlighted by Beyond Meat 's stunning public debutwhich recorded a jaw-dropping 163% gain in its first daythe vegetarian alternatives category of foodtech is blowing up. But at this stage of Beyond Meat's growth, converting new customers remains the utmost priority. Plant-based burgers have existed for decades before Beyond Meat. Over the past twelve months, insiders have purchased 700 thousand shares and sold 4 million shares for a net effect of 3.3 million shares sold. 2023 Latana GmbH. You can see all the adjustments made to Beyond Meats income statementhere. Figure 10 shows the implied values for BYND assuming Kraft Heinz wants to achieve an ROIC on the acquisition that equals its WACC of 4.4%. As of 2020, the Beyond Meat company sells: Cookout Classic (10 plant-based burgers). 2 1 Comment. The alternative meat producer is reportedly focusing its retail . From the Beyond Burger to Beyond Sausage, and their latest Beyond Meatballs this brand is really on a roll. revenue grows 24% a year from 2023-2027 (continuation of 2023 consensus), then. The company's second-quarter 2020. Things Are Only Getting Worse for Beyond Meat Stock.
Beyond Meat Announces New Executive Leadership Appointments to Part of Beyond Meats strategy is to redefine what the best source of protein is. Another key marketing vehicle for the company is its partnerships with big brands likeMcDonalds, KFCand Pizza Hut. Beyond Meat positioned its products as similar to animal meat as they could. More than simply providing a case study of a successful plant-based start-up, this analysis can provide your plant-based business with a complete understanding of the market. This created the need for healthy products. Sounds too good to be true, right? last yearwhere it will: develop, produce and market snacks and beverages made from plant-based protein bringing together Beyond Meats innovation expertise with PepsiCos marketing and commercial capabilities. PepsiCo is known for its marketing prowess and just working with PepsiCo will expand Beyond Meats reach. They exploit their established brand engagement to build more brand equity, at a low cost, because they dont pay a cent for restaurants to make this kind of indirect advertising for them. Instead, they persevered. Each implied price is based on a goal ROIC assuming different levels of revenue growth. Its worth noting that any deal that only achieves a 4.4% ROIC would not be accretive to shareholder value, as the return on the deal would equal Kraft Heinzs WACC. Focus Strategy- Beyond Meats strategy was to focus on creating meat that isnt actually meat, but tastes just like the real thing to replace meat in peoples diets.
Beyond Meat - Corporate Counsel - IP, Marketing & Brand Management This new knowledge of healthy vs. unhealthy created a new market drive for healthy products. Learn More. Heres a quick summary for noise traders when analyzing BYND: Executive Compensation Adds Additional Risk. So, what can you learn from Beyond Meat's marketing strategy? Economic earnings, which account for the unusual items on the income statement and changes to the balance sheet, are negative $6 million and declining over the TTM, even as adjusted EBITDA is positive and rising. This would make growth in Beyond Meats stock price a real possibility in the next two years, taking its stock price to $200. The first six months of 2020 have visibly transformed Beyond Meat 's ( BYND -0.58%) approach to marketing its plant-based, meat substitute products. Beyond Meat, a producer of plant-based meat substitutes, was founded in 2009 in Los Angeles, California. All rights reserved. This is rather than Beyond Meat actually creating a meat brand that is real meat. Plus, they created a new category by being one of the first to do it and do it right. Eating plants is the best thing you can do for your diet. Founder and Tech Inventor at Princess Technologies. And if youre looking to follow in this impressive brands footsteps, keep our above tips in mind and consider adding brand tracking software to your lineup because, without insight into how consumers feel about your brand, you wont know where to grow next. Furthermore, Beyond Meats current valuation implies it will generate sales equal to 29% of Tysons 2019 revenue a level that places it as thesixth largestmeat and poultry processor in the world in 2019. Entrepreneur, retail expert, strategy consultant and author. Big brands have started plant-based meats and substances that are more healthy in order to show that Beyond Meat is not the only plant-based guys in town and gain some market share. For reference, Beyond Meats invested capital has increased by an average of $84 million (28% of 2019 revenue) over the past two years. How Beyond Meat's Marketing Strategy Set it Apart . Some of the largest retailers in the world including Zara and H&M are in the fast fashion business which is not environmentally friendly. Competitors. Beyond Meats real breakthrough is not landing in the meat aisle or having celebrity endorsements but creating a plant based product people actually want to eat. Net revenues were $406.8 million, an increase of 36.6% year-over-year. Since going public, four of its six quarters have shown improvement from. Resourceful, strategic, and self-directed leader with a proven record of achievement in global account management, business development and sales strategy leadership. Figure 2: Beyond Meats Profitability vs. Nowadays, certain celebrities do more than advertise for the brand, some have become ambassadors for Beyond Meat, such as Byrie Irving, from the Boston Celtics. From the beginning Beyond Meat had a vision for its business that was much broader than any of its predecessors. Figure 1: Consensus Revenue Growth Estimates: 2020-2025, 2020-2025 revenue growth rates based on consensus estimates, Competition is Plentiful and Has Competitive Advantages. illustration, packages of Beyond Meat "The Beyond Burger" sit in a refrigerator, June 13, 2019 in the Brooklyn borough of New York City. For example, evaluating the conditions of the animals before death, the process in which the meat is processed, the drugs and antibiotics that the animals were treated with before getting slaughtered. Why did it work for them? Leverage partners with larger platforms to expand reach. The main difference is that Impossible Foods takes its proteins from soy whereas Beyond Meat extracts it from peas. More and more meat-eaters and flexitarians are looking to plant-based products to offset their carbon footprints and help them live a more sustainable lifestyle. It began trading at $25/share on the Nasdaq stock exchange and ended the day at $65.75. Beyond Meat Is Down 93% From Its High. Knowing that the meat is expired and poses a hazard to eat it. This pivot on management's part is undergirded by a continuing commitment to building out manufacturing and distribution capacity -- even in the middle of a pandemic, Beyond Meat more than tripled its capital expenditures in the second quarter against the prior year, to $26 million. In any case, I view recent moves as encouraging as Beyond makes moves to improve its footing to grow as a . Often the largest risk to any bear thesis is what I call stupid money risk, which means an acquirer comes in and buys Beyond Meat at the current, or higher, share price despite the stock being overvalued. This year also saw Beyond Meat break into the international market partnering with the likes of Tesco in the UK to A&W in Canada). Many people can not even tell the difference between real meat and Beyond Meat. Attracted by Beyond Meats impressive growth rates and soaring market value, multiple competitors are entering the alternative meat industry. Critical Details Found in Financial Filings by My Firms Robo-Analyst Technology. Figure 5: Beyond Meats Revenue & Core Earnings Since 2017.
Beyond Meat's Branding Helped Take Plant-Based Mainstream When I use myreverse discounted cash flow (DCF) modelto analyze the expectations implied by the stock price, BYND appears significantly overvalued.
Join the Team | Beyond Meat Careers | Beyond Meat Also, seeing that a lot of slaughter houses will absolutely not let anyone come see the inside conditions that animals are facing. Heres a high-quality portfolio to beat the market, with over 100% return since 2016, versus 55% for the S&P 500. Information Search- Consumers using this new information to do their own research on the history of slaughter houses and the conditions in which animals are being tortured and killed to create meat. However, by now its clear that plant-based meat alternatives are here to stay and theyre gaining traction every year. These days, fewer investors pay attention to fundamentals and the red flags buried in financial filings. Before joining Beyond Meat, Mr. Oghoghomeh served as Senior Vice President, Brand Marketing at Red Bull from 2021 to February 2023. We're here to help brands make better marketing decisions by delivering world-class, scalable insights. Our goal is to give you the key to understanding Beyond Meats rapid success, to show you the hidden reasons for their success. Though their first product received positive reviews from some celebrities and PETA named Beyond Meat their 2013 Company of the Year, journalists who actually tasted the chicken reported that the "likeness to real chicken was tolerable, at best". Given that most plant-based protein products are now aiming for the same goal imitating the taste and texture of meat it stands to reason that as the plant-based protein market matures, differentiation between products will diminish as all products begin to taste more and more like meat. Since its high-flying IPO at $46, this stock has soared to $135. Over the TTM period, FCF is -$164 million. Figure 3 shows Beyond Meat spends 37% of its revenue on operating expenses (SG&A, R&D, and restructuring costs), which is well above peers. The Impossible Foods start-up was founded in 2011 in California by Patrick O. This additional expense, one that is much lower for many competitors (as they already have profitable business lines to offset any marketing of new products), makes it even more difficult for Beyond Meat to improve its profitability in such a competitive market. These sales represent 5% of shares outstanding.
Beyond Meat Stock: A Competitive Analysis | Nasdaq Increased U.S. foodservice and international channel net revenues were more than offset by reduced U.S. retail channel net revenues, which decreased 19.5% compared to the year-ago period. Data by YCharts Kellogg ( K ) and Conagra ( CAG ) are already big established brands, that . Find out how 3 brands use customer data to find success! Placing its hamburgers and breakfast proteins in major quick-service restaurant chains was a logical approach to igniting brand awareness. Beyond Meat Narrows Its Losses. Additionally, Beyond Meat is introducing its plant-based meatballs in Coles, the second largest supermarket chain in Australia with over 2,500 stores. Conference: 2021 3rd International Conference on Economic Management and Cultural . However, this trend is expected to reverse in the short term and the company will once again get on its fast growth track and there are multiple trends that support this growth outlook.
4 Challenges That Could Hurt Beyond Meat Stock | The Motley Fool To illustrate, the company repackaged a portion of its slow-moving food service inventory for retail consumption.