Post by JHam on May 13, 2020 5:23:06 GMT
I have been thinking about this one for a while. Coronavirus has been taking its toll on the meat industry, with some analysts believing this could be a major turning point in how we consume food in the future.
Full disclosure, I am vegan and 100% plant based. It's the best decision I've ever made in my life, but don't worry I am not going to push my views about that in this thread. I do however think that this pandemic has shown the vulnerability of the livestock and poultry industry, and is going to help expedite the growth of what was already a fast growing alternative-meat industry.
Current share price: $135
Market cap: $8.47B
o/s: 61.86M
Cash: $246M
They just reported $97M in 1Q revenue, a 141% increase from 1Q19. About 40% gross margins.
They are expanding like crazy, just inking a deal with Starbucks in China, and based on the Q&A from the last call, it looks like something big is about to happen with McDonald's. $8.5B sounds like a big number, but imo, not when looking at how the industry is changing. Beyond Meat has the potential to be in every restaurant, every grocery store, every Starbucks, every school cafeteria, etc...on the planet.
Meat is a $2T industry annually. If Beyond Meat captures just 5% of that, it would be worth $100B. 13x the current price. Some analysts including Jim Cramer (so take it with a grain of salt) think that when you consider all of their products, beef, chicken, sausages, and others in their pipeline, that Beyond Meat could be the next Amazon or Facebook. Hear Jim Cramer recently talk about that here.
They have plenty of cash on hand, are raking in revenue, and have $200M available to them via a line of credit. I remember back in 2013 buying Tesla at $71 share and selling relatively quickly for a small gain, because I was worried that at $11B it maybe was overvalued. Now it's worth $150B. Looking ahead, I think Beyond is to be worth a lot more than it is now.
Would love to hear some pros and cons on this one.
1Q earnings transcript:
www.fool.com/earnings/call-transcripts/2020/05/06/beyond-meat-inc-bynd-q1-2020-earnings-call-transcr.aspx
Full disclosure, I am vegan and 100% plant based. It's the best decision I've ever made in my life, but don't worry I am not going to push my views about that in this thread. I do however think that this pandemic has shown the vulnerability of the livestock and poultry industry, and is going to help expedite the growth of what was already a fast growing alternative-meat industry.
Current share price: $135
Market cap: $8.47B
o/s: 61.86M
Cash: $246M
They just reported $97M in 1Q revenue, a 141% increase from 1Q19. About 40% gross margins.
They are expanding like crazy, just inking a deal with Starbucks in China, and based on the Q&A from the last call, it looks like something big is about to happen with McDonald's. $8.5B sounds like a big number, but imo, not when looking at how the industry is changing. Beyond Meat has the potential to be in every restaurant, every grocery store, every Starbucks, every school cafeteria, etc...on the planet.
Meat is a $2T industry annually. If Beyond Meat captures just 5% of that, it would be worth $100B. 13x the current price. Some analysts including Jim Cramer (so take it with a grain of salt) think that when you consider all of their products, beef, chicken, sausages, and others in their pipeline, that Beyond Meat could be the next Amazon or Facebook. Hear Jim Cramer recently talk about that here.
They have plenty of cash on hand, are raking in revenue, and have $200M available to them via a line of credit. I remember back in 2013 buying Tesla at $71 share and selling relatively quickly for a small gain, because I was worried that at $11B it maybe was overvalued. Now it's worth $150B. Looking ahead, I think Beyond is to be worth a lot more than it is now.
Would love to hear some pros and cons on this one.
1Q earnings transcript:
www.fool.com/earnings/call-transcripts/2020/05/06/beyond-meat-inc-bynd-q1-2020-earnings-call-transcr.aspx
