Beyond Meat downgraded on concerns that the soaring stock doesn’t take restaurant exposure and competition into account

- Advertisement -
- Advertisement -
- Advertisement -
- Advertisement -

Beyond Meat Inc. BYND, -8.41% was downgraded to sell from neutral at UBS on concerns that the soaring stock price doesn’t take into account the headwinds the plant-based protein company faces. Beyond Meat shares have rallied more than 69% over the past month. UBS says the stock is the best performer under its coverage. Analysts are concerned that 51% of Beyond Meat’s sales are in the foodservice category, which has taken a big hit during the COVID-19 pandemic. Many independent businesses may not survive the outbreak, and national chains may not see sales bounce back as quickly as some may think due to the skyrocketing unemployment rate, UBS said. Moreover, Beyond Meat is facing more competition from Impossible Foods, which announced recently that its namesake burgers will be available at hundreds of new grocers, and big food producers, like Kellogg Co. K, +1.56%, which has introduced new Incogmeato products and plans to launch more. Starbucks Corp. SBUX, +2.85% announced last week that it is launching plant-based food and beverages in China through a partnership with Beyond Meat and other companies, marking Beyond Meat’s entrance into the China market. Beyond Meat stock has rallied more than 48% for the year to date while the S&P 500 index SPX, +1.47% is down 11.5% for the period.

Originally Published on MarketWatch

Home of Science
Follow me

- Advertisement -

Discover

Sponsor

Latest

What to Expect From Super Bowl 2020

With Super Bowls is what they are, you would think there would be more competition with it. There really is not a lack of...

Are You Writing a Business Plan?

As many businesses come and go, those that are really successful will have a solid plan in place. Every business has its own unique...

Top Three Baby Names for Today

On a recent episode of The Billie Eilish Show, she was asked the question "What are your top three baby names?" You can read...

Why Is Dick’s (DKS) Down 16.8% Since Last Earnings Report?

It has been about a month since the last earnings report for Dick's Sporting Goods (DKS). Shares have lost about 16.8% in that time...

Spzrts, a Company Built From Love for Sports & Social Media, by Marko Danial

Sports is about developing relationships, becoming charismatic, and taking various personalities and people to conjoin in one, as a team. Social skills are developed...
Home of Science
Follow me