Beyond Meat Bounces Back from Sharp Decline with New Meatier Burger Patty

Is alternative meat the future of dining?

Is alternative meat the future of dining?

Still, Beyond Meat has never made an annual profit, losing US$30 million previous year.

US meat processor Tyson Foods Inc on Thursday launched its first vegetarian and mixed-protein products, including a beef and pea burger, as it seeks to compete with Beyond Meat and other companies catering to rising demand for plant-based alternatives to meat.

In other Beyond Meat news, insider Dariush Ajami purchased 2,000 shares of the company's stock in a transaction on Monday, May 6th.

Beyond Meat is striving to create products that are indistinguishable from beef, pork and poultry for consumers who like meat but want to eat more healthfully and reduce their impacts on the planet.

For Beyond, the strategy means occasionally pulling products.

California company Beyond Meat has announced its intention to launch a "meatier" version of its plant-based burger in stores throughout the United States.

Adding more complexity, some country regulations regarding ingredients (Brown named Canada, for one) may cause the company to tweak core recipes further, which could also lead to a "slightly lower fill rate". With retail sales accounting for $19.6 million in Q1 revenue (about half of Beyond's total business), the company is likely hoping that a more "lifelike" burger can boost that number with the number of players in the space soon to expand.

The company said that the new patties would be rolling out nationwide immediately. In my view, investors are using the company's stock as a proxy bet on a macro trend, i.e., a shift towards vegan and vegetarian diets, but are glossing over the other components that need to come into play for their investments to pay off.

Beyond had a wildly successful initial public offering last month. (BYND:NASDAQ), which saw its stock price rise 600% since it began trading in May. The company's products have enjoyed increasing visibility on restaurant menus.

And major food sellers Nestlé and Tyson are introducing their own plant-based alternatives to meat.

Goldman said in his report Tuesday that he still believes the company's fundamentals look solid, but he also now thinks the valuation is way ahead of itself. 'I have no distraction with an incumbent business, no concerns about upsetting my existing supply chain'.

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