<h2 class = "canvas-text text Mb (1.0em) Mb (0 ) – sm Mt (0.8em) – sm "type =" text "content =" 1. Does it have a competitive advantage? "data-reactid =" 36 "> 1. Does it have a competitive advantage?
Obviously, alternative meat is hot, not just Beyond Meat to see exponential growth, but chains like Burger King, Carl's Jr., TGI Friday's and White Castle jumps on the plant-based burger development, and takes the niche product into the mainstream.
<p class = "canvas-atom clay text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm "type =" text "content =" But Beyond Meat is not The only vendor is Privately Held Impossible Foods can be the biggest challenger. Its trademark Impossible Burger is now sold on chains like Burger King, Applebee and Cheesecake Factory . & nbsp; "data-reactid =" 38 "> However, Beyond Meat is not the only supplier here. Privatehold Impossible Foods can be the biggest challenger. Its trademark Impossible Burger is now sold on chains like Burger King, Applebee, and Cheesecake Factory
<p class = "canvas-atom canvas text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "And not surprisingly, some big players Angler for a piece of the fast-growing market. Through the Sweet Earth brand, it purchased in 2017, and Nestle & nbsp; plans to launch a plant-based "Awesome Burger" in the US market Tyson Foods (NYSE: TSN) the country's largest food company, said it would start selling plant-based meat products this summer. & nbsp; & nbsp; & nbsp; & nbsp; data-reactid = "39"> And not surprisingly, some of the big players are looking for a piece of the fast-growing market. Through the Sweet Earth brand it bought in 2017, Nestle plans to launch a plant-based "Awesome Burger" on the US market this fall, and Tyson Foods (NYSE: TSN) The country's largest food company said it would start selling plant-based meat products this summer.
The company claims that "research, development and innovation" represents critical competitive advantages, and it has patents and other intellectual property that protect its technology and methods. But the claim that it has a meaningful moat is in the process of being seriously tested by the likes of Tyson, Nestle and others. At least, new competition is likely to reduce prices and narrow margins in the plant-based meat industry, and take market shares from Beyond Meat.
<h2 class = "canvas-atom canvas-text Mb (1.0em) [0459002] 2. Is this different from other math tendencies? " data-reactid = "42"> 2. Is this different from other recent food trends?
The last major trend to change this industry was the increase of "organic" food – grown, raised and prepared without pesticides, hormones or additives that some believe are bad for human health and the environment.
<p class = "canvas-atom canvas text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "While that niche has obviously been a growth driver in the food industry, With organic food sales in the United States more than doubling in the last 10 years to $ 45 billion, and the history of organic food companies have been much different. " data-response time = "44"> While the niche has clearly been a growth driver in the food industry, with organic food sales in the United States more than doubling in the last 10 years to $ 45 billion, the history of organic food companies has been much different.
<p class = "canvas-atom canvas text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "largely specialty players such as Whole Foods Market, United Natural Foods (NYSE: UNFI) Sprouts Farmers Market (Nasdaq: SFM) & nbsp; Hain Celestial (NASDAQ: HAIN) has suffered as common food companies as Kroger Costco and others have invaded organic food space, take part and lower prices. " United Natural Foods (NYSE: UNFI) Sprouts Farmers Market (Nasdaq: SFM)) And Hain Celestial (NASDAQ: HAIN) has suffered as common food companies such as Kroger Costco and others have invaded the organic food sharing and sinking prices.
<p class = "canvas-textile Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Whole Foods, once a stock market loved, saw its sales volume steadily slender in mid-2010, and it ended up selling to
Amazon & nbsp; for $ 13.7 billion in 2017, about a third less than it was worth on top in 2013. & nbsp; "Whole Foods, once a stock market, saw its sales growth steadily in mid-2010 and ended up selling to
Amazon for $ 13.7 billion in 2017, about a third less than it was worth at its peak in 2013.
Organic foods, including United Natural Foods, a distributor of organic and natural foods, and Hain Celestial, which owns organic brands, including the Garden of Eatin and Rice Dream, and Sprouts have fallen strong over the past five years, when performance has not lived up to expectations.
<p class = "canvas-text) – sm Mt (0.8em) – sm" type = "text" content = " HAIN data of YCharts "data-response time =" 65 "> HAIN data of YCharts
<p class =" canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em ) – sm "type =" text "content =" Much like Beyond Meat, the two stocks and whole foods increased in the years after the financial crisis when the organic food trend only started to gain traction, but competition, mainstreaming and mature growth in the organic sector burned these shares. "data-reaction time =" 66 "> Like Beyond Meat, these two stocks and Whole Foods increased in the years following the financial crisis when the organic food trend only started to gain traction, but competition, mainstreaming and mature growth in organic
<p class = "canvas-atom canvas text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "The rise (NASDAQ: FI ZZ) gives another example. Stocks that rose as La Croix, a flavored seltzer brand, became a thousand years ago. Then came new competition from small brands such as Spindrift, as well as the major beverage businesses, La Croix drains buzz and market share. After a sudden increase La Croix's sales are now falling. Here again, the story is reflected in the stock map. & nbsp; "data-response time =" 67 "> La Croix owner's rise and fall National Beverage (NASDAQ: FIZZ) gives another example. Stocks increased as La Croix, a flavored seltzer brand, became a thousand Then came new competition from small brands like Spindrift, as well as the big beverage businesses, which drained La Croix buzz and market share. After a sudden increase, La Croix now falls sales. Here again, the story is reflected in the stock chart.
<p class = "leather component textile Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = " FIZZ data by YCharts "data-response time =" 81 "> FIZZ data by YCharts
Beyond meat investors must ask themselves whether alternative meat is different from organic food or flavored seltzer. If the answer is" it is not, "expect the Beyond Meat stock list to have a similar ending.
<h2 class =" ca nvas-atom canvas text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm "type =" text "content =" be eating plant-based meat for 10 years? "data-reactid =" 83 "> 3. Will everyone eat plant-based meat within 10 years?
At this point, the Beyond Meat bullring seems to be a bet that plant-based burgers will be almost As popular for 10 years as traditional beef burgers are today, it seems to be the only way to justify the company's valuation, now at a sales price of 34 based on this year's revenue guidance, a level normally reserved for high-growth, scalable tech companies, or even experimental Although Tyson Foods, one of the world's largest suppliers of poultry, beef and pork, is only valued at $ 30 billion, with $ 40 billion in annual sales, the upside to Beyond Meat stocks means this the time somewhat limited compared to how far the stock has come since its listing, it was clear that the company's own management and guarantors had more modest expectations for just One month ago, their decision to charge the IPO to a valuation of $ 1.4 billion.
Nevertheless, there are reasons to believe that plant-based meat could be a truly transformative thing. Demand for such products is currently in excess of supply, and Beyond Meat and Impossible Foods is having trouble expanding to follow up with orders. Many fast food chains have avoided selling veggie burgers in the past; Burger King's debut of Impossible Whopper seems to be a validation of the plant-based burger concept, suggesting the company sees its potential to become a common, popular menu item.
Finally, it is an environmental argument for Beyond Meat and its plant-based peers. Calorie for calories, livestock cultivation is a far more environmentally friendly process than growing plants, in terms of space and energy consumed, not to mention methane emissions from cattle and other animals. Plant-based meat is a much more effective way to feed the more than 7 billion people in the world, and if it tastes about the same as the animal-based version, people can switch masses to the more environmentally-friendly, healthier and potentially cheaper alternatives.
At this time, it appears that the market has already priced such a food revolution into the Beyond Meat stock. If that actually happens, the company can continue to be a great winner. But the story – and the threat of competition – should suggest caution here. Investors may want to take a small approach to this plant-based meat company.
<p class = "canvas-atom canvas text Mb (1.0em) Mb (0) – Sm Mt (0.8em) – -m" type = "text" content = " More from The Motley Fool "data-response =" 89 "> More from The Motley Fool
<p class =" learns lyric text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm "type =" text "content =" John Mackey, CEO of Whole Foods Market, a subsidiary of the Amazon, is a member of The Motley Fools Board of Directors. Jeremy Bowman owns shares of Amazon. recommend Amazon. Motley Fool recommends Costco Wholesale, National Beverage and Nestle. disclosure policy . "data-response time =" 97 "> John Mackey, CEO of Whole Foods Market, a subsidiary of Amazon is a member of The Motley Fools Board. Jeremy Bowman owns shares of Amazon. Motley Fool owns shares and recommends Amazon. Motley Fool recommends Costco Wholesale, National Drink, and Nestle. Motley Fool has a disclosure policy.
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