I added a position into Beyond Meat recently and I thought I’d throw my two cents out there. Here’s my bullish case for the BYND.
Beyond Meat recently announced some pretty sweet partnerships for the next few years. A big win is with McDonald’s for the McPlant burger. They will be the supplier for the plant based menu item for the next three years. This could possibly open the opportunity for other plant based menu items there as well. BYND will also be teaming up with Yum! Brands. There will be plant based menu items offered at KFC, Pizza Hutt and Taco Bell. This is a great opportunity for Beyond Meat to reach more customers. Last year, they announced a unique partnership with Dunkin’ Donuts and Snoop Dogg for the Beyond D-O-Double G Sandwich.
Beyond Meat also announced recently that they’re going to be expanding their products within Walmart as well. They are currently in more than 2,000 different Wal-Mart locations already. Last year Beyond Meat announced partnerships with both BJ’s Wholesale and Sam’s Club. So, now not only do they have a strong presence in the fast food industry but they are now carving out a spot for themselves in the retail space as well. Beyond Meat is in about 25,000 retail stores across the US. This includes companies like Target, Whole Foods, Kroger, Publix & Sprouts
On top of all that, earlier this year Beyond Meat announced that they would be partnering with PepsiCo for plant based products offered by the company. There’s only speculation as to what this could be but it’s just another avenue for Beyond’s customers to get hands on their product.
Personally, I think we’re entering into the age where synthetic meat and meat alternative products are an everyday thing. They only get better over time and as the flavor increases so will the customer base. Beyond Meat has already established a trusted brand and they have many customers to show for it. With these partnerships listed above it creates an opportunity for a lot of growth in the coming years.
The market has been pulling back recently but BYND has stumbled since late January after announcing the Pepsi deal. It has brought the stock down and away from overbought levels. This tells me there is some room for growth in the price and that we may see more money flow coming in. This is definitely a longer play here. I plan on holding this for at least a year but will re-evaluate every four months just to make sure it’s still a right fit.
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