Beyond Meat Shows the World is Changing
The Best Performing IPO Shows Millennials are Changing the Food Industry
Beyond Meat is the supreme first-mover in the plant-based burger market. It’s appealing to both vegetarians and meat-eaters.
Millennials especially are avoiding eating red meat for health, ecological and other reasons.
The stock shows this is not just a movement, but an entire shift in the food industry that’s transformative to the future of fast food.
The Future of Food is Friendly
The maker of plant-based meat substitutes reported 2018 revenue of $87.9 million and a net loss of $4.75 per share. They expect to make over $200 million in 2019 and to have burgers that are cheaper than meat-based ones soon.
Analysts have higher annual revenue estimates than the company because Beyond only includes the impact from post-trial distribution to restaurants in its outlook. This IPO has been shocking in how well it has been received.
Beyond Meat will be a Powerhouse
To give you an idea of the mad success of this hot product, the company’s stock, which has a market value of $7.4 billion, is up more than 400% since it went public at the beginning of May. That’s not normal, that’s beyond hype. Millennials want a better world.
Millennials have been re-shaping the food industry for years away from sugar, alcohol and meat to a more green-friendly world of healthier products.
The El Segundo, California-based company is all the rage right now on Wall Street. Its first earnings since going IPO this week went through the roof. Beyond Meat’s sales tripled this quarter in its very first earnings report as a public company. Millennial sentiment really matters, and the other industry where this will impact retail and food in a huge way is the cannabis legalization movement.
Millennial Ethics are changing the World
Beyond Meat’s offering price was $25 and its opening trades were $46 a share. Today, as of June 7th, 2019, the stock is at $130. How do you quantify Millennial ethics on the market? Beyond Meat is a perfect example.
Beyond Meat’s push to be found in the grocery store meat aisle is also one against a legacy food industry. Securing the location of its burger in meat cases is crucial to Beyond Meat’s strategy, and it’s sparking a food fight with the meat industry. You’ve maybe seen food documentaries on the meat industry that depict what actually happens before it comes to our plate. Well, we are pushing back too.
The stakes are high in the battle over supermarket real estate, as upstart Beyond Meat seeks to quickly carve out its place in the meat section. The consumer always wins in the end and the food industry needs to adapt to the reality of their preferences. Millennials are vastly different in their environmental and nutritional concerns.
Cannabis & Beyond Meat Shows the Future of Ethics in Consumerism
Investors have been drawn by the potential for increased demand for meat alternatives, a category that is growing rapidly and will soon become more crowded. But it’s being driven by the behavior of Millennials who are re-thinking how they eat and live on very fundamental levels.
This is why I love the Beyond Meat story, it shows the kind of transformation that’s more than just about one company or one stock, but about more ethical, holistically and environmentally conscious living. Do you eat Beyond Meat products?
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