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Why is Beyond Meat so Cheap?

Don’t confuse poor retail sales with waning consumer interest.

Andrew Willis 18 March, 2022 | 4:28AM
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Andrew Willis: After a rough fourth quarter, we lowered our fair value estimate for Beyond Meat (BYND) – but that’s because we’re lengthening the timelines for new product launches at McDonald’s and restaurants held by Yum Brands, which include KFC, Pizza Hut and Taco Bell.

There’s good potential for Beyond Meat on the fast-food front, and investors selling on retail figures might be missing out when we return to restaurants post-pandemic.  Equity analyst Rebecca Scheuneman says this shift is supported by rising U.S. food-service sales growth of 26% last year- despite ongoing Covid restrictions at that time, while international sales were up 77%.

And before writing off retail sales, maybe wait until the company’s first significant marketing campaign – or at least until sampling returns.

For Morningstar, I’m Andrew Willis.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar Rating
Beyond Meat Inc14.42 USD-0.05Rating

About Author

Andrew Willis

Andrew Willis  is Senior Editor at Morningstar.ca. Follow him on Twitter @AndrewWillisCDN.

 

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