Alternative Meat Satisfying Consumer Stock Investors Right Now
In wake of closures of major meat-packing plants amid the coronavirus outbreak, investors appear to be craving for meat substitute stocks. Beyond Meat (BYND Stock Report) sees a spike in demand for plant-based meat. Even if you are not convinced with the idea of meat substitutes, that doesn’t mean BYND stock is not worth the attention. Many meat plants are left idle for deep cleaning.
Others aren’t running at full capacity due to a shortage of workers. This came as many meat plant workers were tested positive for Covid-19, making them the new frontliners in this pandemic. With no end in sight to our current predicament, we see a major opportunity for Beyond Meat to step up and provide value in the current market.
Beyond Meat Stock Poised For Strong Growth Amid Coronavirus Pandemic
Research shows that plant-based diets are showing great health benefits. The awareness of such a diet is growing. Currently only about 6% of Americans are vegetarian. Studies show that almost 40% now make an effort to eat more plant-based foods. Beyond Meat stood out as one of the top plant based meat stocks to watch.
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The increasingly popular Beyond Meat had a further boost amid the pandemic. This came as a great time for Beyond Meat to further strengthen its brand image. Where the company is able to supplement the shortage of beef and pork substitutes, making the Beyond meat the best stocks to buy during coronavirus.
Prior to the pandemic, Beyond Meat was only serving as an alternative healthy source of diet. But now with the disruptions in the meat supply, people are rushing to stock in more plant-based diets. And that’s producing a significant demand that is not slowing down any time soon.
A 141% jump in first-quarter revenue and profit “exceeded our expectations despite an increasingly challenging operating environment due to the Covid-19 health crisis,” Beyond Meat Chief Executive Ethan Brown
US Meat Stocks Slump In Stark Contrast To Beyond Meat Stock
Tyson Foods Inc (TSN Stock Report) is the biggest U.S. meat company. On Monday, TSN stock was battered after reporting a 15% drop in earnings. The news came as there were major production disruptions and plant closures across the United States. According to the United Food and Commercial Workers International Union, more than 5,000 meat and food processing workers have been infected or exposed to Covid-19. While the demand for meat remains strong, investors are likely to be more concerned with the challenges faced by Tyson Foods.
“As the outbreak continues, we think meat processors will continue to be faced with the difficult task of balancing worker safety and ensuring the nation’s meat supply chain runs smoothly.”
Thematic Research analyst Arun Sundaram
The chairman of Tyson Foods said that millions of pounds of meat will disappear from supplies as plants close. With that in mind, the growing threat of a meat shortage is helping to lift BYND stock. Beyond Meat’s first quarter results, announced after the market’s close on Tuesday, sent the stock up more than 7% in after-hours trading.
New Partnership Signals New Opportunity For BYND Stock
Fast-food chains are planting the seeds of change for those who prefer meat-free diets. Many fast-food chains are conducting trials to serve plant-based food to their patrons. We could expect to see a major shift in eating habits across the globe, especially after the pandemic.
One company that has particularly stood out in committing to sustainability is Starbucks (SBUX Stock Report). In February, the world’s largest coffeehouse partnered with Beyond Meat to launch a breakfast sandwich in Canada. Beyond Meat has been featured in different menu items in China, where Starbucks has more than 4,000 chains, many of which have reopened since the pandemic.
Hence, we see how Beyond Meat could prove to be a high growth stock to watch in 2020. The company is not just focused on meat substitutes in the US, but also in the world’s second-largest economy.
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Apart from Starbucks, Beyond Meat also has partnership deals with major fast-food chains in the US. Their partners include McDonald’s Corp (MCD Stock Report), Del Taco Restaurants (TACO Stock Report), and Dunkin’s Brands Group Inc (DNKN Stock Report).
What To Expect From BYND Stock
The world is not expected to return to normal until a vaccine or treatment is found. We continue to expect high demand for plant-based food as the supply chain for meat has yet to be restored. We can’t say for sure if the trend of people stocking up Beyond Meat is sustainable. Nevertheless, we believe that some of them will stick to plant-based meat in the longer term. Investors could expect to see a huge jump in revenue in the following quarter. Coupled with market expansion exercises, BYND stock is definitely worth a look.
