Company name: Beyond Meat
Entry Price: $132
Target Price: $165
Projected Yield: 25%
Time Line: 3 to 6 months
About Beyond Meat
Beyond Meat is a major international manufacturer of plant-based meat substitutes. The product line includes food products that mimic the taste and texture of chicken, pork, and beef.
What's the Idea?
Capitalize on the stock that may rise due to the international expansion and launching an online sales platform.
Buy Beyond Meat Shares >>
Why Trade Beyond Meat?
Reason 1: Product Line Expansion
The ongoing lockdown in the US caused many restaurants to close, which, in its turn, had Beyond Meat's sales decline significantly. However, the company was able to compensate for the losses by expanding its product line and signing contracts with a few fast food chains that have a door to door delivery service.
Currently, Beyond Meat's product line includes a variety of products like hamburger patties, sausages, and more. With the expanded assortment, the company also continued to actively sign new contracts with major US retail chains.
From the IPO to July this year, the number of retail stores selling Beyond Meat products increased from 29.50K to 65K. The implementation of this strategy will further increase the consumer interest towards artificial meat, which, in its turn, will improve brand awareness and have a positive impact on the company's sales.
Reason 2: Expansion to Other Countries
In addition to expanding its presence in the United States, Beyond Meat is also aggressively expanding to other countries. Currently, Beyond Meat's products are sold in 84 countries. The company recently entered the Brazilian market, where it sells its products in Sao Paulo through St Marche grocery chain.
China is also a very important market for Beyond Meat; since April, its products are being sold at Starbucks coffee chains throughout the entire country. In addition, the company partnered with Sinodis,a leading local distributor, in order to sell the products in grocery stores. Beyond Meat is also present in a large store and restaurant chain owned by Yum China Holdings Inc.
Despite the pandemic, Beyond Meat was able to expand the number of stores overseas from 1,600 to 47,000. If the current pace of expansion persists, the company may take a significant share of the international market, offering an alternative to meat products.
Reason 3: Online Sales Platform
In late August, Beyond Meat launched an online sales platform that allows one to order plant-based products and have them shipped home. Once the new website had been launched, the consumers got an opportunity to order small bulk quantities, mixed kits of different products, and trial kits. This will boost sales, increase repeat purchases, and expand Beyond Meat's market share in the US.
Reason 4: Stable Financial Conditions
Despite the current economic situation across the board, Beyond Meat is doing well: In the first six months of 2020, the earnings grew by 95.80%, amounting to $210M.
The company's management is effectively running an operating activity optimization program. Thanks to this, the adjusted EBITDA margin increased from 4.40% to 12.20%, while the loss decreased from $16.10M to $8.40M. The company has a significant cash reserve on its balance sheet: $222M. The debt is low and amounts to $74M.
A strong financial position and an adequate supply of funds can help Beyond Meat grow its business and expand its share in the global plant-based meat products market.
How to Use the Investment Idea
- Buy Beyond Meat shares at $132.
- Allocate no more than 3-4% of your portfolio amount. To build a balanced portfolio, you can use recommendations by our analysts.
- Sell the stock when the price is at $165 per share.
How to Buy Beyond Meat Shares?
If you don't have an investment account yet, open it now: this can be done online, in just 10 minutes. All you need to do is fill out a short form and verify your account.
After opening an account, you can buy shares in either of the following ways:
Freedom24 Web Platform: In the Web Terminal section, type BYND.US (Beyond Meat Inc. ticker in the NASDAQ) in the search box, and select Beyond Meat Inc. in the results. Open a secure session in the trading window on the right, select the number of shares you want to buy, and click Buy.
Freedom24 iPhone or Android App: Go to the Price screen and tab the search icon in the top right corner. In the dialog that shows up, type BYND.US (Beyond Meat Inc. ticker in the NASDAQ), and select Beyond Meat Inc. in the results. You will then see Beyond Meat Inc. stock in the market watch; tap it and go to the Order tab in the dialog that shows up. Specify the number of shares you want to buy and click Buy.
Buy Beyond Meat shares, don't miss your chance to capitalize on its global expansion!
Buy Beyond Meat Shares >>
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