Beyond Meat (BYND) is scheduled to report results of its first fiscal quarter after the market close on Thursday, May 6, with a conference call scheduled for 5:00 pm ET. What to watch for:
1. COMPETITIVE BACKDROP 'HEATING UP': On Wednesday, Jefferies analyst Rob Dickerson lowered the firm's price target on Beyond Meat to $132 from $140, while keeping a Hold rating on the shares after updating forecasts, which he noted has left his revenue estimates below consensus in each of the three years 2021 through 2023. Dickerson sees quick service restaurant upside, but believes the alternative meat category competitive backdrop is heating up.
2. MORE TEENS OPEN TO PLANT-BASED MEAT: Piper Sandler analyst Michael Lavery said his firm's latest teen survey with 7,000 respondents included questions on plant-based meat. The teen survey results suggest Impossible Foods and Beyond Meat are the most preferred plant-based meat brands so far, though 36% of teens who consume plant-based meat still have no brand preference, Lavery told investors in a research note last month. Of the teens surveyed, 49% either consume or are open to consuming plant-based meat, up from 47% in the fall 2020 teen survey. Lavery believes plant-based eating is "more on-trend with younger consumers and could drive growth over time as consumers age." Of plant-based meat consumers who have a preferred brand, Impossible was the favorite brand among 33.0% of teens, slightly ahead of Beyond Meat at 32.9%, he noted.
3. CHICKEN COMING IN SUMMER: Beyond Meat is telling customers that it is preparing to launch a chicken alternative this summer, Bloomberg's Deena Shanker reported late last month, citing people familiar with the plans. Beyond Meat has been experimenting with plant-based chicken for years, including previously selling a frozen chicken-strip product that was discontinued in early 2019, Shanker pointed out.
4. U.S. RETAIL DISTRIBUTION EXPANSION: Last month, Beyond Meat announced several major product expansions within its existing footprint at retailers nationwide. "As demand for plant-based meat continues to rise, this increased distribution strengthens the company's expansive retail presence at approximately 28,000 retail outlets across the U.S.," the company said. The expanded retail product availability includes Beyond Meatballs - Newly available at Kroger (KR) approximately 1,500 stores, Target (TGT) 750 stores and Giant Foods 163 stores; Beyond Breakfast Sausage Links - Newly available at Kroger approximately 1,500 stores; Cookout Classic - Expanding throughout April and May to more than 3,000 existing Beyond Meat retail partner stores nationwide including Wegmans, Albertsons (ACI)/Safeway, FreshDirect.com, Jewel, Sprouts, Stew Leonard's, and Stop & Shop; Beyond Sausage - Newly available at Super Target 200+ stores in May.
Beyond Meat
-3.26 (-2.68%)
Kroger
+1.49 (+4.09%)
Target
+1.09 (+0.51%)
Albertsons
+0.62 (+3.33%)