Beyond Meat’s Beyond Burger.
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Beyond Meat stock has been beaten down over the past year, but the alternative protein maker’s fourth-quarter numbers, out Thursday after the market closes, could provide a much-needed boost.
Shares of Beyond Meat (BYND) have tumbled more than 68% in the past 12 months, and are down 30% since the start of the year. Yet, 2022 has also ushered in good news: Yum Brands
! (YUM) introduced Beyond Fried Chicken at its KFC restaurants, and trials of the McPlant at McDonald’s (MCD) have proven positive.
In fact, a more upbeat outlook for Beyond Meat’s restaurant sales helped convert a bear to a bull last month.
That said, the number of bulls is still small, with just three of the 22 analysts tracked by FactSet rating Beyond Meat at Buy. And expectations aren’t terribly high, either—many of the analysts have steadily moved their estimates lower in the back half of 2021.
Beyond Meat has always been a rollercoaster of a stock, and is no stranger to big post-earnings moves; a third of its available shares are sold short, adding to volatility.
While the global appetite for faux meat is growing and Beyond Meat has expanded its roster of partners, bears argue that the stock is overvalued, especially given the lack of price parity with traditional meats and the need for ongoing investments in its business. The pandemic added another headwind, with supermarket sales unable to replace the loss of business at restaurants.
All of that is to say that if Beyond Meat can show stronger-than-expected retail sales and evidence that its food service component is recovering more rapidly than expected, shares could get a boost. By contrast, if ongoing shipping delays, labor shortages, and soft restaurant sales once again dominate, more pain could be ahead.
Write to Teresa Rivas at [email protected]
