Beyond Meat (BYND) Declines After Extraordinary Debut
Zacks Investment Research | Jun 11, 2019 03:38AM ET
On Tuesday, shares of Beyond Meat (NASDAQ:BYND) are plunging, down over 20% in afternoon trading after J.P. Morgan (NYSE:JPM) downgraded the stock to have both struggled to meet the demand for their meat alternative products. Due to their limited production means, both companies have had trouble keeping up with orders being placed by restaurants who are adding meatless options to their menus. Some of the restaurants that offer their products are TGI Friday’s, Del Taco (NASDAQ:TACO) , Red Robbin (NASDAQ:RRGB) , and Burger King (NYSE:QSR) have all added meatless options to their menus in an effort to attract a larger client base.
Beyond Meat was also able to surpass analysts’ expectations in its first earnings report since its IPO. The company predicted that lost more than $400 million betting against the company.
Right now, Beyond Meat sits at a Zacks Rank #3 (Hold), with a Style Score of F in Value. The company currently doesn’t have a P/E since it is a loss-making company, but it does hold a Zacks Style Score of B in Growth, with a projected sales growth of +141.11% for the current fiscal year. With the way the company has been met with an unprecedented demand for their products, the potential they have in sales growth is extraordinary.
If Beyond Meat can enhance production to meet the demand, future sales growth could prove to be tremendous. Additionally, if the company can also successfully implement its new “meatier” product, it can potentially reach new consumers who may be hesitant to switch to plant-based meat. Being able to cater to a new clientele would provide the company with even more room to grow and sustain its success.
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