Stock Analysis
Beyond Meat (NASDAQ: BYND)
January 15th, 2020
Updated: January 21st, 2020
Xavier Loor
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Company Overview
Beyond Meat is an American producer that specializes in plant-based meat substitutes. Founded in 2009, the company’s vegan products include synthetic chicken, pork, and beef, which became initially became available across the United States in 2012. Currently, Beyond Meat has product placements in over 35,000 locations including grocery stores, hotels, restaurants, and universities. Beyond Meat has also established partnerships with multiple restaurant brands such as Dunkin’, A&W, Tim Horton’s, and Subway. The company also has McDonald’s currently testing its product, “The Beyond Sandwich” in multiple locations across Ontario, Canada.
Beyond Meat’s stock was first made public through NASDAQ on May 3rd, 2019 at an IPO price of USD $25 and at an opening price of USD $66.75. It is currently one of the few plant-based meat production companies and vegan-focused companies overall to have their shares publicly traded in a U.S. stock exchange.
Industry Analysis
Although Beyond Meat is part of the food industry, it is more identifiable as being part of the vegan food subindustry and as such will be the main focus in the analysis.
The global vegan industry is estimated to be valued at approximately USD $13.37 billion in 2019 with forecasts predicting an annual growth rate of 9.1% over the next 7 years (USD $24.3 billion by 2026). The growth of the market has been attributed due to the following:
– Increased awareness of health benefits of plant-based products, and alternatives to meats and other animal byproducts such as milk;
– Growing negative reception of animal cruelty in meat production;
– Growing concerns towards greenhouse gasses produced by the meat industry that contribute negatively towards the global environment;
– Multiple celebrity endorsements towards the benefits of a vegan lifestyle. Examples of celebrities who identify themselves as vegan include talk show host Ellen DeGeneres, tennis athlete Serena Williams, musician Madonna, and former U.S, President Bill Clinton;
– Large food producers and restaurant chains such as McDonald’s and Burger King attempting to capture market share in this industry by adding vegan items to their menus.
Some of the key players in the industry include Beyond Meat, Impossible Foods, VBites, and Archer Daniels Midland Company.
Historical Stock Price
Between May and December of 2019, Beyond Meat’s stock price had endured aggressive fluctuations, once having reached an all-time high price (USD $234.9) only 3 months after its initial public offering. The stock has since fallen and currently moves between $75-$125 price range (See Figure 1 and Figure 2).
Figure 1: Beyond Meat’s Stock Graph (January 15th, 2020)
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