Beyond Meat Inc Wins McDonald’s Deal
The next big stock-market war isn’t about killers apps or social media companies fighting over ad revenue. Instead, it’s being fought over our bellies. And right now, meat-alternative stocks are gaining steam.
One company in particular, Beyond Meat Inc (NASDAQ:BYND), has captured the attention of nearly every investor due to its meteoric rise over the past five months.
Beyond Meat stock is showing no signs of slowing down, with the company recently scoring a victory with a McDonald’s Corp (NYSE:MCD) partnership. (Source: “The Beyond Meat burger is coming to McDonald’s in a Canadian test,” CNN Business, September 26, 2019.)
That marks Beyond Meat’s first major win in the coming meat-alternative stock wars.
First, here’s a brief retelling of Beyond Meat Inc’s success: BYND stock has been the hottest initial public offering (IPO) of the year. The company’s mouth-watering IPO is one that few companies dare dream of. The stock has risen by more than 500% since it went public in May.
Chart courtesy of StockCharts.com
Beyond Meat stock enjoyed very strong gains in first few months after its IPO, continuing to surge until the summer, when the stock finally experienced some sort of a hiccup. After jumping 800% from its IPO price, Beyond Meat saw its share price fall.
And that is to be expected. After all, eternal growth is impossible for any company, and such a long and sustained run was bound to face an obstacle eventually.
And that brings us to the recent past. As seen in the above chart, BYND stock recently enjoyed a decent boost, enjoying a 10% gain since the company announced its partnership with fast-food giant McDonald’s.
By scoring the McDonald’s partnership, I believe that Beyond Meat may soon get back to its winning ways. While 500% gains in a matter of months are unlikely to happen again, the potential of the McDonald’s partnership is beginning to sell me on Beyond Meat stock as a long-term investment opportunity.
BYND Stock Prediction
The thing about massively successful IPOs like the one that Beyond Meat experienced is that many investors who didn’t get in on the rush are left feeling like they missed the boat. There’s simply no way that a stock that experienced over 500% gains in five month is going to be able to continue to grow—is there?
To be fair, there is a lot of sense to that concern. After all, companies’ share prices grow in accordance with their perceived value. Once they hit their fair value, they rest until they can demonstrate increased worth.
By rising by 500%, conventional wisdom would have it that Beyond Meat stock has hit its fair value—or has even exceeded it.
While it is a valid argument, it flies in the face of what we know about the company.
For one thing, the meat-alternative industry is rapidly growing, with near-limitless potential. Everyone eats, after all, and if meat-alternatives are the way of the future, we’re possibly seeing a humanity-redefining product come into existence right before our very eyes.
As such, the available market for Beyond Meat is huge. So we don’t have to worry about the company maxing out its market cap anytime soon.
As far as BYND stock predictions go, winning deals with major food suppliers like McDonald’s is critical to maintaining growth.
McDonald’s will be rolling out a Beyond Meat burger for testing in 28 locations in Canada, centered around Toronto and other southwestern Ontario cities. (Source: Ibid.)
Calling it the “P.L.T.” (plant, lettuce, tomato) the new sandwich will be available for 12 weeks, and then I imagine McDonald’s will consider whether to keep the product or ditch it.
Whether McDonald’s keeps the Beyond Meat burger, the message is clear: major fast-food makers are looking into the meat-alternative sector. As this craze grows, we can expect to see other restaurant chains enter into talks with Beyond Meat Inc.
And that brings us to the Beyond Meat stock prediction. The company has two major qualities that I think make it very enticing right now: hype and lack of competition.
While hype isn’t always a great thing, and can at times lead to overvaluation, I believe that the hype currently surrounding BYND stock is warranted. After all, this is a company that is attempting to revolutionize the food industry.
There’s a lot of buzz and excitement surrounding Beyond Meat stock after its stellar performance post-IPO, so right now I’d say that investors are keenly watching the company, eager to get in on the next rush.
As such, partnerships like the one scored with McDonald’s are going to be excellent catalysts for stock price growth.
The next major attribute of BYND stock is that it has no real competition (yet). As the market continues to expand, I anticipate that many other companies will edge in on Beyond Meat’s turf, but for now, the company is pretty much the industry standard-bearer, at least on the public stock market.
Those two factors make Beyond Meat stock very exciting. I predict that the company will see a further 20% growth from its current share price by year’s end. If it keeps up this pace, it could quickly become one of the better long-term stocks around.
Few companies have sparked the excitement in the stock market that BYND stock has. While other tech IPOs have largely fallen flat over the past few years, the Beyond Meat Inc IPO represents one of the best overall performances for a company in an emerging industry in a long while.
As such, investors are keen to get in on what could be a massive growth stock for years to come.
Beyond Meat has the chance to be a real winner if it can keep up the momentum. I’d advise investors to keep a close eye on Beyond Meat stock for both long- and short-term plays.