Beyond Meat Inc. got a reprieve from two downgrades in as many days after Tim Hortons said it’s now offering faux-meat breakfast sandwiches at almost 4,000 locations across Canada.
The plant-based meat products maker gained as much as 7.1% in early trading after the coffee-and-doughnuts chain said it added three breakfast sandwiches to the menu made with Beyond Meat sausages after testing them at select stores last month.
The stock reversed earlier losses driven by Sanford C. Bernstein & Co.’s decision Wednesday to cut its rating on Beyond Meat to market perform from outperform, saying shares of the company have gotten too expensive after a more than 400% rally since its May 1 initial public offering. On Tuesday, JPMorgan Chase & Co.’s similar move spurred a 25% decline, Beyond Meat’s worst day since the debut.
Last week, the company reported quarterly earnings for the first time since the IPO, fuelling optimism among investors when it said sales would exceed $210 million this year, topping analysts’ estimates. It also said earnings before interest, taxes, depreciation and amortization would break even, compared with projections it would have a loss. The results reinforce that consumer demand for alternative meat products is on the rise.
After seeing such an impressive move on the upside since the IPO, when I saw a Beyond Meat Burger on the menu of my club’s restaurant this afternoon, I thought I had better taste one. It was good and certainly competes favourably with the de rigeur beef patties at most fast food outlets. I would hasten to add however that it pales in comparison with the gourmet burgers on offer in London and much of Europe. The cost on the other hand was on par with any average burger and that is an important part of its appeal.Click HERE to subscribe to Fuller Treacy Money Back to top