Beyond Meat Releases New High-Protein, Low-Fat Burger

Beyond Meat Inc. (BYND) has announced a new veggie burger which will be produced in Canada. Made with simple, plant-based ingredients without GMOs, the Beyond Burger is designed to meet, if not exceed, the nutritional profile of its animal protein equivalent- and boasts 35% less saturated fat.

The California-based vegan brand says that its newest burger offers 20g of protein derived from “simple, plant-based ingredients like peas, mung beans, and rice, and features marbling made from cocoa butter that is designed to melt and tenderize like beef.”

In a July 22 press release, Beyond Meat CEO Ethan Brown said, “We look forward to providing the Canadian consumer with our latest burger iteration and to furthering our commitment to this important market by investing in local production.” He added, “Our process of rapid and relentless innovation in service of the consumer, and making investments in the markets we serve, are key pillars in our company’s strategy to provide delicious and nutritious plant-based protein with a lower environmental footprint.”

Meanwhile, Beyond Meat has expanded its geographical footprint into China this past April, with its menu items being available at 4,200 Starbucks locations. Earlier this month, the company launched its food products- Beyond Beef, Beyond Burger, and Beyond Sausage in Brazil at 19 Sao Paulo locations through the retail chain, St. Marche.

“Our Brazil market entry marks an important step in furthering our mission of increasing accessibility to plant-based meat globally. As the third-largest market in the world in terms of animal meat consumption, Brazil offers significant opportunity for plant-based meat adoption,” said Brown, in a July 15 company news release.

Bernstein analyst Alexia Howard says that according to her estimates, BYND will record a sales increase of 52% for Q2 for about $102 million, which is well below the 141% year-over-year gain Beyond Meat reported in Q1. She noted, “This significant slowdown in sales growth could shock some retail investors, who tend to move the stock.

Howard added, “Beyond Meat’s strong sales velocities may provide a high barrier to entry for other brands into the refrigerated section of the store which could limit competition.” The analyst reiterated a Hold rating on the stock and raised her price target from $118 to $133, which implies 3% upside potential.

Also, Citigroup analyst Wendy Nicholson anticipates “near-term pressure as a result of its exposure to the foodservice segment,” in addition to “longer-term pressure as the [alternative meat] category becomes more competitive.” She assigned a Sell rating on the shares and set her price target at $123 (5% downside potential).

Beyond Meat’s stock is up 72% year-to-date. The Moderate Sell analyst consensus breaks down into 2 Buy ratings versus 5 Hold ratings and 6 Sell ratings. The $112.38 average price target suggests 13% downside potential for the shares in the coming 12 months. (See Beyond Meat’s stock analysis on TipRanks).

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