<p>The last time I weighed in on Beyond Meat (NASDAQ: BYND), I said, “With Americans changing their diets, retailers flocking to the opportunity and potential for big revenue growth, I think BYND could trade closer to $ 160.” That was on February 14 when the Beyond Meat stock traded at $ 113.
Source: calimedia / Shutterstock.com
Then hit the coronavirus. State governments demanded that restaurants close their doors in response to “social distancing” efforts.
Investors ran rescued and grilled Beyond Meat to a sharp. While shares of Beyond Meat should be avoided, immediately, there is another “blood on the street” opportunity to consider as the corona chaos begins to fade.
Herbal meat needs still sizzles
Globally, there is a great demand for plant-based meat. So it’s no surprise that the industry is seeing massive growth. Retail sales of plant-based foods in the United States alone increased by 11% to $ 4.5 billion during the year to July 2019, says entrepreneurial contributor Brian Kateman, compared to 2% growth in U.S. retail.
Better yet, the US plant-based industry rose to a market value of $ 801 million in 2019. Over the next five years, however, it could be worth up to $ 27.9 billion, according to research firm Markets and Markets. By 2030, the industry could be worth up to $ 85 billion.
And according to NBC News contributor Martha C. White, the NPD found that 16 percent of Americans say they “regularly” use herbal alternatives to meat and dairy products, such as almond milk and meat substitutes. More unexpected, however, is that 89 percent of people who eat all tells the NPD that they are not vegetarians or vegans. “
Healthy long-term rewards
Of course, Beyond Meat faces stiff competition from Tyson Foods (NYSE: TSN), Kraft Heinz (NASDAQ: KHC) and Conagra Brands (NYSE: CAG). But it is difficult to argue that Beyond Meat will not benefit from the massive transition to alternative meat.
At the same time, Beyond Meat continues to accelerate sales.
Starbucks (NASDAQ: SBUX) CEO Kevin Johnson is committed to increasing plant-based alternatives. Restaurant Brands (NYSE: QSR), Burger King, White Castle and Dunkin (NASDAQ: DNKN) are also adding herbal alternatives. Even Denny has just announced that they will be adding Beyond Meat burgers in 1700 locations. Subway tests Meatball Marinara.
That’s growth investors should not ignore.
Even Martha Stewart just partnered with Beyond Meat to help launch Beyond Breakfast Sausage. Beyond Meat offers a better plant-based alternative to animal protein for people who want to change or expand their diet. I think it’s important to start the conversation about herbal diets. Reducing our meat consumption as we move towards the future is another important step in curing the environmental problems in which the world we live, she says.
The core of Beyond Meat Stock
At the moment, Beyond Meat has been burned by coronavirus terror. But when the fear has subsided, the opportunity will return. The demand for alternative meats, agreements with popular food destinations and an approval from Martha Stewart can only help.
When the fear subsides, I strongly believe that shares in BYND can return to $ 150 per share.
Ian Cooper, an InvestorPlace.com contributor, has been analyzing shares and options for web-based advisory services since 1999. At the time of writing, Ian Cooper had no position in any of the above securities.