Beyond Meat Unveils Summer Price Cut for Burgers
Beyond Meat (BYND) - Get Beyond Meat, Inc. Report shares rose Wednesday after the plant-based-meat seller unveiled a cut in retail prices for its burgers.
Starting next week, the El Segundo, Calif., company is offering Cookout Classic, a limited-edition burger 10-pack available at a majority of Walmart and Target stores in the U.S.
The 10-pack will go for a suggested price of $15.99, or $1.60 per quarter-pound patty. That compares with Beyond Meat's two-patty pack, which sets non-carnivores back $5.99, or $3 per patty.
The Cookout Classic will be available through mid-August, or until supplies last, the company said in a statement.
It’s “intended to narrow the price gap between plant-based meat and animal protein, making delicious, nutritious and sustainable plant-based meat more accessible to more people.”
Beyond Meat has generated a lot of attention since it went public in May 2019. The stock went public at $25 a share and it has jetted up 170% over the past three months. But as of Tuesday's close it's also off 55% from its lifetime closing high near $235, set in July 2019.
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Beyond Meat shares recently traded at $163.95, up 7.9%.
Its revenue more than doubled in the first quarter from a year earlier to $97.1 million, despite the coronavirus pandemic. That surge was “primarily due to an increase in volume sold,” the company said.
Meanwhile, Credit Suisse raised its target price on Beyond Meat to $142 a share from $90, while affirming its rating at neutral.
"Contrary to our initial view, Beyond may emerge as a net beneficiary of the pandemic in the near term due to strong demand in the retail channel (48% of sales) and in the long term due to rising consumer interest in healthier foods," Credit Suisse analysts said in a commentary, according to Dow Jones.
Morningstar analyst Rebecca Scheuneman has a positive outlook for the company.
“We model Beyond’s market share increasing from 2.5% in 2019 to 6.8% in 2029, as [plant-based meats] gain a larger share of the overall meat category, and as Beyond’s brand continues to win with consumers, given its strong performance in taste tests and ongoing R&D investments,” she wrote in a commentary last month.
