A Division of NBCUniversal. Sign upfor our weekly, original newsletter that goes beyond the annual Disruptor 50 list, offering a closer look at start-up trends, and founders who continue to innovate across every sector of the economy. "Currently, our product on shelf is priced a little higher than organic grass-fed beef, so that's still a premium price, and we know we need to get that down over time.". Still, disputes aside, Beyond Meat has been doing very well these past few years. The new Beyond Burgers include the brand's juiciest patty for the meatiest burger experience even as it delivers strong nutritional wins relative to 80/20 beef with 35% less saturated fat, as well . Here's Why. They even announced deals to supply some major customers, such as McDonalds and Yum Brands, the parent company of KFC and Taco Bell. 5 Lessons for Food Startups From Beyond Meat's Stunning Success, A Cup Of Ambition: Coffee Products Pour Into the Plant-Based Sector, Damaging Results of The Mandated Return to Office, Man Filmed Vandalizing Rome Colosseum Identified, Faces Up to Five Years in Prison, Truck Driver Who Killed Five in Tragic Car Crash Was Watching TikTok While Driving, According to a New Report. If you invested $1,000 in Beyond Meat at IPO, that investment would be worth nearly $4,500 as of Feb. 5, 2020, for a total return of around 345%, according to CNBC calculations. Visit Beyond Meats store locator to find Beyond Meat products at a store near you. This year also saw Beyond Meat join forces with Mcdonalds to develop their McPlant option. Companies knew the mandated return to the office would cause some attrition, however, they were not prepared for the serious problems that would present. A Division of NBCUniversal. Instead of drawing attention to a product that consumers didnt love, they simply discontinued it and slowly fazed it out of supermarkets. That's because JPMorgan believes the company's recent stock comeback is a result of media speculation surrounding the potential for an expanding partnership between McDonald's and Beyond Meat, which could unfairly sway investors to buy. The debut comes amid a robust slate of initial public offerings this year. Global Business and Financial News, Stock Quotes, and Market Data and Analysis. One high point: On Jan. 7, 2020, Beyond Meat stock surged 12.5% after its rival Impossible Foods dropped out of a deal with McDonald's, Reuters reports. Investors are excited about the prospects of companies such as Beyond Meat, since it's expected that the alternative meat industry could win 9% of market share by 2040, which is about $240 billion in revenue, according to a 2019 report from Jefferies Financial Group. If you are thinking about getting into investing, experts often advise starting with index funds, which hold every stock in an index, such as the S&P 500. But what has allowed them to be so successful despite their setbacks? Robert Tuchman As meaningful as the color scheme found in the Beyond Meat logo is, the imagery in this attractive logo design is equally meaningful. Nope, its just Beyond Meat. The Story Around Beyond Meat (BYND) Just Changed, The 'AI Superstar' Stock That Wall Street's Big Money Is Buying Today, Marathon Digital Holdings Inc Shares Close the Week 26.4% Higher - Weekly Wrap. It just goes hand in hand," said Debra Holstein, owner of The Edible Future, an innovation and research consultancy group that's worked with companies such as Unilever, Kraft Foods and Campbell's. Beyond Meat faces fierce competition in the alternative-protein space, listing competitors as both makers of plant-based meat substitutes like Impossible Foods, Gardein, and Field Roast and traditional animal-product companies like Cargill and Hormel. Read more: Beyond Meat raises the price range for its IPO. By making plant-based foods that look and taste like real meat, Beyond Meat can do its part to change consumer habits for the better without forcing the consumer to feel as if they have sacrificed something in the process. All Rights Reserved. A Division of NBC Universal. "As we rush to keep up with consumer demand for our products, my guess is that many families are having the same experience.". Sounds too good to be true, right? On the other hand, shares of Yum have climbed 30% in the last year, bringing its market value to $40.3 billion. More Americans are embracing a so-called flexitarian diet in which consumers cut down on their meat consumption for health and environmental reasons. 2023 CNBC LLC. 2018 In 2018, Beyond Meat opened a 26,000 square feet (2,400 m ) R&D lab in El Segundo, California. Customer insights how will they strengthen your brand? They have that great brand awareness and deals with massive chains and, as of this morning, a way of meeting that demand with reasonable costs. That has driven the growing popularity of plant-based substitutes. Robert Tuchman is the host of Entrepreneur's. Top editors give you the stories you want delivered right to your inbox each weekday. Design Elements of the Beyond Meat Logo In the study conducted at Stanford University, researchers evaluated the impact of replacing animal-based meat with Beyond Meats plant-based meats over an 8-week period on cholesterol levels (including LDL), heart disease risk factors including TMAO levels, and body weight, and found improvement in key health metrics when participants replaced animal-based meat with Beyond Meats plant-based meat. The question that remained was whether or not they could satisfy all that demand and, more importantly, do so at a profit. In preparing for launches to come in the new year, Beyond Meat poached industry veterans from Tyson Foods for its C-suite in December, adding Doug Ramsey as chief operating officer and Bernie Adcock in a new role of chief supply chain officer. Get Make It newsletters delivered to your inbox, Learn more about the world of CNBC Make It, 2023 CNBC LLC. When the Chicken-Free Strips failed, it wasnt only about the taste something was just off. While Beyond Meats international success is certainly thanks especially to the companys ability to make healthy and great-tasting plant-based meat substitutes, Beyond Meat has done an excellent job of marketing their products as well and the Beyond Meat logo has played a critical role in these marketing efforts. That offering raised nearly $241 million. And if this happens, you need to have others you can roll out. By Sissi Cao 12/03/19 4:25pm Fake meat believer Bill Gates knew when the Beyond Meat hype had reached its peak. Sign up for free newsletters and get more CNBC delivered to your inbox. At some Burger King locations, customers are able to pay full price for a select group of items and buy another for $1 included in that is the Impossible Whopper, which is the plant-based burger alternative to the beef Whopper. Vegan food brands are taking over the world and wielding a great deal of power in Germany. When Beyond Meat was met with the failure of their Chicken-Free Strips their first real product they didnt fold. Getting alternative meat to taste similar to animal meat equivalents is one of the primary obstacles that stands in the way of plant-based products, Barroso said. As demand for plant-based meat continues to rise, this increased distribution complements the companys expansive retail presence at approximately 28,000 retail outlets across the U.S. in which consumers have made their preference for Beyond Meat clear: according to the 52-week SPINS and NPD data ending December 2020, Beyond Meat was the #1 selling plant-based meat brand in the refrigerated category at grocery stores1 and across foodservice2. One of the primary issues with the average American diet today is the overabundance of red meat. Did Beyond Meat Stock Just Turn a Corner? Woodside said Impossible Foods is able to make this product the same price as the animal meat equivalent because they are producing it at scale. "With peas, it's 1-to-1, with a little bit of loss, but it's close to 1-to-1.". Investors warn that this stock is likely to have many ups and downs ahead, which could make it a poor choice for investors with low risk tolerance. In the last 12 months, shares have lost half their value, dragging the company's market value down to $3.9 billion. [7] History Founding Ethan Brown founded the company in 2009 with the stated mission of combating climate change. While this may seem like a minor detail using beetroot juice to mimic blood it helped the Beyond Burger get one step close to winning over non-vegans. Beyond Meat was first founded in 2009 by Ethan Brown. Such forward-looking statements are made only as of the date of this release. But how they handled it is what makes them a successful brand. However, the lack of fervor for their first product did nothing to stop Beyond Meat from trudging forward. "Our ingredients require a small fraction of water, small fraction of the land and energy than it takes to raise a cow.". Beyond Meat has not formally confirmed its next earnings publication date, but the company's estimated earnings date is Thursday, August 3rd, 2023 based off prior year's report dates. For Beyond Meat founder Ethan Brown, though, taking Beyond Meat to the highest levels of success was always about more than just the money. Beyond Meat, the decade-old plant-based meat-substitute company, soared by 163% on Thursday as it became the latest unprofitable, disruptive company to make its stock-market debut. Now, investors are banking on the idea that if a partnership between Beyond Meat and McDonald's expands, the alternative meat company's shares will rise to new heights. Over the years, Beyond Meat has partnered with a wide range of restaurants to develop flavorful vegan dishes that look and taste as if they were made using real meat. [3] [4] [5] [6] The company went public in 2019, becoming the first plant-based meat analogue company to go public. In the same time frame, by comparison, the S&P 500 earned a total return of around 14%. It's that unflappable approach, along with an unwavering commitment to using only simple plant-based ingredients with no bioengineered ingredients, that attracts so many all-star athletes to the brand including Chris Paul, DeAndre Hopkins, Kyrie Irving, DeAndre Jordan and Lindsey Vonn, who have all seen the health and performance benefits of going plant-based. "If you're not producing enough to bring the price down, then your demand will not be significant.". Its sales have grown mightily over the same time, with net revenue of $16.2 million, $32.6 million, and $87.9 million in 2016, 2017, and 2018. By 2013, he was selling mock-chicken products at Whole Foods. Therefore, its safe to say that Beyond Meat has undoubtedly enjoyed a high degree of success. As good as the story was, there were some potential problems. Beyond Meat undertakes no obligation to publicly update or revise any forward-looking statement because of new information, future events or otherwise, except as otherwise required by law. And its shareholders have seen massive returns. Beyond Meats brand commitment, Eat What You Love, represents a strong belief that by eating its portfolio of plant-based meats, consumers can enjoy more, not less, of their favorite meals, and by doing so, help address concerns related to human health, climate change, resource conservation and animal welfare. " The company has found extensive success in the US market, doubling sales in 2017 and increasing distribution of its portfolio to more than 27,000 grocery stores and restaurants ," said Beyond Meat CEO Ethan Brown. "We're continuing to grow the operations team; they did a lot of work to help the team get ready in these final days," Brown said, adding the Yum tie-up has been years in the making. Data is a real-time snapshot *Data is delayed at least 15 minutes. At major retailers that sell the products, such as Kroger and Walmart, you can buy two Beyond Meat plant-based hamburger patties for $5.99, whereas at the same stores, you can likely get two pounds of ground beef for around the same price and end up with more hamburger patties than plant-based patties. Beyond Meat was founded in many ways as a direct response to the many health and ecological problems that the world now faces. Beyond Meat "Beyond Burger" patties made from plant-based substitutes for meat products sit on a shelf for sale in New York City. The first trade in the stock that day was nearly double that at $46 and BYND never looked back. Best Debt Consolidation Loans for Bad Credit, Personal Loans for 580 Credit Score or Lower, Personal Loans for 670 Credit Score or Lower. The launch comes after years of testing from the Yum Brands chain and Beyond Meat to create a meat substitute that mimicked the taste and texture of whole muscle chicken, like chicken breast, rather than the ground-up consistency of nuggets. However, Tim Hortons, a chain of coffee and doughnut shops, said in January it had removed its limited-edition Beyond Meat products from locations in the Canadian provinces of Ontario and British Columbia. Privacy Policy | Terms of Use | Site Map, Beyond Meat Announces Nationwide Retail Launch of Latest Product Innovation, Beyond Beef, Marbling designed to melt and tenderize like traditional ground beef, Versatile enough to use in virtually any ground beef recipe, enabling consumers to enjoy the dishes they love, while enjoying the nutritional and environmental benefits of eating plant-based meat products, Neutral flavor and aroma profile to serve as a blank canvas for any seasoning or cuisine, 25 percent less saturated fat than traditional ground beef; 6g per serving.