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Ahead of Q4, Is Now The Time To Buy Beyond Meat Stock?

Ollie Martin - AskTraders News writer
Ollie Martin trader
Updated 10 Jan 2022
  • The market is yet to reflect Beyond Meat's expansion as the company continues to grow
  • Following today's deal with Pizza Hut, Beyond Meat products are slowly integrating across famed franchises
  • With Q4 approaching in February, will we see some easing of harsh selling pressure?

Beyond Meat (NASDAQ: BYND), the hottest meat substitute company rapidly integrating its products into prominent consumer chains…seems to just keep dropping. Today, the company announced that its plant-based sausage will be a permanent feature of the menu of Canadian Pizza Huts; but that is just the start of the story. 

As soon as alternative diets became a clear feature of modern culture; you might assume that companies like Beyond Meat – who are actively pushing vegetarian solutions in supermarkets and throughout fast-food chains – would be flooded with the green wave of investment. Akin to the renewable and green energy sectors that have gifted valued returns over the last year, Beyond Meat seems to be underperforming as a leader in ‘green’ food products. 

Year-to-date, the company has lost about 43% of its stock value and remains around 34% down from its initial IPO back in early 2019. Sellers are clearly dominating the plant-based stock; but why? Although BYND has its occasional break – jumping 10% on a deal with KFC and welcoming buyers back with a change in management; overall, bearish sentiment regarding the company’s long-term success remains strong. 

On paper, Beyond Meat appears to be rapidly expanding. Previous to today’s deal with Pizza Hut, just last week KFC have agreed on the nationwide rollout of Beyond’s vegan chicken nuggets. To integrate an alternative diet that is rapidly growing, into some of the world’s most vital fast-food franchisees is evidently a positive move in maximizing market share – at a time when competition seems sparse. 

There is one slightly worrying hurdle to BYND’s potential as a growth stock for 2022. Meat alternatives can’t exactly be patented, and unless Beyond’s consistent partnerships have been exclusive, a gaping hole emerges for market undercutting. Bearing in mind this is still an emerging market, competition will only increase as eco-centricity starts to have more effect on the markets. 

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Now, as BYND is set to open Monday trading with a daily loss of 1.7%, investors might be a little confused. The deal with KFC saw a 10% rise in stock, but similar deals have sparked an opposite reaction. Selling pressure increased dramatically with the companies’ uninspiring Q3 results, but will Q4 outline a brighter horizon? With pandemic trading trends and supply chain issues easing, along with numerous new deals with critical consumer brands embedding the companies footprint – we very well might see a different narrative this time around. 

Based on the inevitable growth of plant-based alternative diets; Beyond Meat seems to be building the right framework for its cultural integration – targeting the right franchises and using the right marketing. The company is set to announce Q4 earnings around the end of February; will buyers find their way back to the struggling stock on better than expected growth? Or will the company continue its ominous downward trend as sentiment remains dubious? 

Ollie Martin - AskTraders News writer
Oliver is a financial writer and analyst specialising in the US stock market, with years of personal experience in understanding micro/macroeconomic structures, market trends and fundamental analysis.