Love or hate their products, Beyond Meat is undervalued and market sentiment is overly bearish.
Business Overview
Beyond Meat is a leading plant-based meat company offering a portfolio of revolutionary plant-based meats.
Catalyst
1 – The flagship product Beyond Burger is launching the fourth generation to the market in April & May. This new version reduces saturated fat by 60% and sodium by 20%. It is also the first plant based meat company to meet the American Diabetes Association’s evidence-based nutritional guidelines.
2 – The company has gone through restructuring and cost cutting over the past year and 2024 is when it will begin to materialize. They’ve forecasted moving from a negative gross margin to positive mid-high single digit gross margin by end of year.
3 – The company recently announced 250mm shelf offering. Normally this would be negative news, however this eliminates the risk of bankruptcy and the market now knows how much capital maybe raised over the upcoming year(s).
4 – Demand has been declining in United States. The company is shifting the narrative from meat replacement to the healthy benefits of the plant based alternative. This along with the ADA label may help re-spark consumer interest.
In Europe, sales have been rising and continue to be a strong market.
5 – Generally, demand is greater during the U.S. summer grilling season. The compounding changes should be reflected in first half of the year.
