Beyond Meat, Inc (BYND) Stock Price, News, Quote & History
Since its inception, more than 10 years ago, Beyond Meat (BYND) has become a leader in plant-based meat alternatives. The vegan meat company product line is now available in 119,000 retail and food service outlets in more than 80 countries. Following its debut in May 2019, BYND shares surged 859% to record levels in less than three months. Since then, its commercial history has been very turbulent.
The news of a large distribution deal in January 2021 ensured a temporary increase in Beyond's stock. The vegan meat producer also briefly joined the meme stock rally in May. But can BYND shares be bought now? The key is first to analyze the fundamental and technical image of a vegan meat company.
Except for Miss's earnings decline
BYND shares fell around 11% after earnings dropped in the fourth quarter on February 24. Beyond Meat reported a loss of $ 1.27 per share on revenues of $ 100.7 million. Wall Street expected a loss of 71 cents a share on revenues of $ 101.4 million.
Larger-than-expected wage losses come as Beyond Meat sees a slowdown in growth. Sales were slightly negative compared to the previous year. This is partly due to declining grocery retail sales, which fell by 8% year-on-year.
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"The key question is whether this subdued growth rate is an aberration or a harbinger of what is to come," Brown said during the company's February 24 results announcement. "As our guidance for 2022 suggests, we believe that last year's growth rate is temporary and that growth will pick up to higher levels this year."
Losses in the retail segment were compensated by the catering division of BYND. Key fast food partnerships such as KFC and McDonald's increased sales by 26% from the previous year to a record $ 76.5 million.
BYND Stock jumps to the KFC premiere
Beyond Meat started the year with a strong impulse with a nationwide debut in KFC restaurants. The vegan meat producer announced on January 5 that the long-awaited vegetable chicken nuggets will be on the menu by the middle of the month. BYND shares initially jumped over 14%, ending the month with a 3.8% increase.
The introduction of chicken nuggets to the market is the culmination of many years of cooperation with KFC Yum Brands (YUM). The fried chicken chain was the first U.S. fast food restaurant to introduce plant-based chicken to consumers as part of a limited test in August 2019. Beyond Meat and KFC extended this partnership to several more cities in 2020.
And KFC is not the only partnership in Beyond Meat's portfolio. Last year, a plant meat producer struck a deal with fast food giant McDonald's (MCD) and PepsiCo (PEP) to produce healthy, protein-filled snacks. The Pepsi deal was Beyond Meat's most far-reaching partnership to date, giving the company access to new distribution channels.
These partnerships have given BYND stocks short-term gains in the market but have not produced any long-term gains for investors.
Beyond Meat expands to China
In addition, Beyond Meat announced in September 2020 that it is building production facilities near Shanghai, China. This makes Beyond the first overseas vegan meat company to start operating in this country.
Beyond Meat announced the grand opening of its first manufacturing facility in China on April 7th.
The Shanghai plant is key to increasing Beyond Meat's presence in the Chinese market. BYND's campaigns perceive the region as an important element of the company's long-term development strategy.
The opening of the production facility in China follows the launch of a new e-commerce site for Beyond Meat. The platform allows consumers to purchase vegan meat products directly from the company.
"In Asia, our goal of establishing a production footprint by the end of 2020 remains on track," said Brown. "We believe the enormity of the opportunities in Asia deserves significant investment, and we will continue to act with a sense of urgency appropriate to both the challenge and the opportunity."