Beyond Meat (NASDAQ:BYND) fell in early trading after Piper Sandler downgraded the alternative meat stock to an Underweight rating from a previous stance of Neutral. The firm warned on increasing competition for plant-based meat substitutes and thinks the impact of a nationwide McDonald’s (NYSE: MCD) launch may be overstated due to skepticism around the in-market performance.
“Given its lack of Beyond branding, there is also the risk MCD takes production in-house at the end of its three-year contract with Beyond. Either way, the lack of clear branding also mutes the carryover benefit from consumer trial at MCD into retail,” noted analyst Michael Lavery.
Lavery also noted that the McPlant menu item does not have any Beyond Meat branding benefit for the company even if it goes national.
The company made news last week when it and PepsiCo, Inc. (NASDAQ: PEP) teamed up to announce the debut of Beyond Meat ® Jerk, a plant-based jerky which claims to be the first product from the two companies’ joint-venture, Planet Partnership, LLC. Rolling out at stores nationwide starting in March, Beyond Meat Jerky offers a full-flavored, on-the-go snack experience that furthers Beyond Meat and PepsiCo’s shared passion for creating products that BYND claim are better for both people and the planet.
BYND shares lost 62 cents, or 1.3%, to $48.01.