Should You Invest in Beyond Meat?

PHOTO CREDIT: Beyond Meat

OVERVIEW

Beyond Meat is a company based in the United States. The company designs, manufactures, and distributes plant-based meat products around the world. The company makes products like chicken, sausages, beef, and many other products all under the Beyond brand. The company was founded in 2009.

Why You Should?

  1. Beyond Meat is a great reopening play in an investor’s portfolio. The COVID-19 pandemic has caused a drop in demand for some of Beyond’s products as restaurants and other venues closed. However, once these locations reopen and as Beyond sells more products, the company will see a rise in sales. This will benefit the company and its investors.
  2. Beyond Meat is well-positioned for the future of the meat and food industry. Plant-based products are gaining popularity as consumers look for healthier options and also look to limit the impacts of climate change. Beyond Meat is an extremely well-known brand within this plant-based food category. Sales will continue to rise because of this. These future growth opportunities will benefit the company and its investors.
  3. Beyond Meat is looking to partner with many large and small restaurants around the world. Some of these companies include McDonald’s and YUM Brands (the parent company of Pizza Hut, KFC, and Taco Bell). This will benefit the company’s future growth and will also benefit investors in the company.
  4. Beyond Meat has seen rising revenues over the past couple of financial years due to the reasons mentioned above. This has helped the company’s growth strategy and has benefited investors in the company. In the financial year of 2020, the company reorted revenues of around 406.8 million. This is significantly higher than what the company reported in the financial year of 2018 when they had revenues of around 297.9 million.
PHOTO CREDIT: Yahoo Finance

Why You Should Not?

  1. Beyond Meat faces tough competition from many large food companies around the world. Some of these competitors include Tyson, Impossible Foods, and many others. This has hurt the company in the past and might continue to hurt the company and its investors in the future.
  2. The COVID-19 pandemic has hurt the company. This is because many restaurants and other venues that serve Beyond Meat products shut down due to the pandemic. This has hurt the company and its investors. However, once the pandemic is over, many of these restaurants and venues will reopen. This will cause a rise in demand for the products that Beyond Meat offers.
  3. Though Beyond Meat is a great company and is a good growth play, the company has never turned a profit. This has hurt investors and the company in the past and might continue to hurt them in the future. Investors should be cognizant of these metrics.

MY OPINION

I think that Beyond Meat is a decent long-term investment due to its position as a good reopening play, its future in a growing plant-based food industry, future partnerships that will offer the company growth opportunities, and rising revenues. However, tough competition, impacts from the pandemic, and a lack of profits might hurt the company and its investors in the future.

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Aaditya Patel is a writer who publishes analysis on companies publicly traded on the NYSE. Follow him @the_investing787 on Instagram for summary posts.

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Aaditya Patel

Aaditya Patel

Aaditya Patel is a writer who publishes analysis on companies publicly traded on the NYSE. Follow him @the_investing787 on Instagram for summary posts.

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