Market Overview

This Beyond Meat Consumer Survey Highlights Some Challenges, Analyst Says

Share:
This Beyond Meat Consumer Survey Highlights Some Challenges, Analyst Says

The bullish case for plant-based food maker Beyond Meat Inc (NASDAQ: BYND) can't be justified amid mixed consumer survey results, according to Piper Sandler.

The Beyond Meat Analyst

Michael Lavery initiated coverage of Beyond Meat's stock with a Neutral rating and $115 price target.

The Beyond Meat Thesis

Piper Sandler surveyed more than 3,500 U.S. adults as part of the research firm's initiation of coverage. Among those surveyed, 62% of respondents were "not interested" in consuming a plant-based food product. Among the remaining respondents who do eat plant-based food, just 2% prefer Beyond Meat products. In fact, five times as many consumers named a competing brand as their favorite product.

Meanwhile, a separate survey with McDonald's Corp (NYSE: MCD) franchisees suggests its Beyond Meat-featured "PLT" sandwich has seen "disappointing" sales so far due to a high price point, the analyst wrote in a note. Among those surveyed, 45% aren't counting on a meatless sandwich to drive significant sales while 60% favor a rollout of a new chicken sandwich which is being tested in a few small markets.

Encouragingly, 15% of respondents were willing to try plant-based food while 7% of people surveyed have no brand preference, the analyst wrote. This suggests potential upside for Beyond Meat to expand beyond its existing client base.

McDonald's alone represents a $100 million annual opportunity in the U.S. and another $50 million in global markets, however, this opportunity is "largely priced into valuation" at current valuation levels.

BYND Price Action

Shares of Beyond Meat were trading around $116.75 at time of publication.

Related Links:

JPMorgan Downgrades Beyond Meat On Valuation

Wells Fargo Analyst Says Beyond Meat's Stock Has Downside To $72

Latest Ratings for BYND

DateFirmActionFromTo
Feb 2020Piper SandlerInitiates Coverage OnNeutral
Jan 2020JP MorganDowngradesOverweightNeutral
Jan 2020Credit SuisseMaintainsNeutral

View More Analyst Ratings for BYND
View the Latest Analyst Ratings

Posted-In: food Michael Lavery Piper Sandler Plant Based FoodAnalyst Color Price Target Initiation Analyst Ratings Best of Benzinga

 

Related Articles (MCD + BYND)

View Comments and Join the Discussion!

Latest Ratings

StockFirmActionPT
SNPSCFRAMaintains160.0
GRPNMorgan StanleyMaintains1.5
PPCCFRADowngrades30.0
HMSYCantor FitzgeraldReiterates33.0
FSLRCascendMaintains60.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com