Does the Beyond Meat Rally Have Legs? - InvestingChannel

Does the Beyond Meat Rally Have Legs?

Beyond Meat (NASDAQ:BYND) was the story of the spring of 2019.

There is considerable enthusiasm surrounding the rising plant-based protein market. Beyond Meat benefited from this perception and its stock rose from a starting price of $46 to over $220 in mid-summer trading.

However, this surge would come to a screeching halt later in the year.

The company has regained some of its swagger to start 2020.

McDonald’s (NYSE:MCD) announced that it would expand its Beyond Meat offerings to over 50 locations in Ontario, Canada. Beyond Meat burgers also expanded to other major food chains like Denny’s and Starbucks (NASDAQ:SBUX) across the United States.

Shares of Beyond Meat have now climbed 48% in 2020 as of close on February 6. It is expected to report its Q4 and full-year results in the coming weeks. In the third quarter, the company posted its first profit of $0.06 per share and revenue rose to $92 million.

Both figures beat analyst expectations. Sales grew across restaurant and grocery divisions.

Beyond raised its full-year outlook for revenue after this solid quarter. It is forecasting revenue in the range of $265 million to $275 million. The company projects adjusted earnings of $20 million for FY2019.

The stock has been highly volatile since its initial run up, but this is not a reason to cast it aside. Beyond Meat boasts high growth potential in a promising sub-sector. Investors will be buying on the up right now, but long-term this looks like a stock that is worth sinking your teeth into.