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Source: beyondmeat

Why Did Beyond Meat Stock Drop?

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The spotlight is on Beyond Meat stock today after the company released its third quarter earnings and McDonald’s unveiled its own line of meatless burger under the McPlant brand. Beyond Meat stock trades on the Nasdaq exchange under BYND ticker symbol. 

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Founded in 2009 and based in Los Angeles, Beyond Meat makes plant-based meat alternatives. It has products designed to be substitutes for beef, pork, and chicken meat. Ethan Brown has served as Beyond Meat CEO since the company’s inception.

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Why did Beyond Meat stock drop?

Beyond Meat stock reported its third quarter earnings after the closing bell Monday. The earnings disappointed. In addition to posting a surprise loss, Beyond Meat recorded the slowest revenue growth since its IPO in May 2019. Beyond Meat stock fell as much as 28 percent in afterhours trading Monday on the tepid earnings. Beyond Meat stock continued the decline today, falling as much as 22 percent in premarket.

Beyond Meat reported a surprise loss for the third quarter. The company recorded its slowest revenue growth since going public in May 2019. In addition to the disappointing earnings, news about McDonald’s McPlant is also weighing on Beyond Meat stock as investors seem to fear Beyond Meat could face increased competition.

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McDonald’s declines to confirm Beyond Meat’s role in McPlant

There’s confusion about Beyond Meat’s role in McDonald’s McPlant. While Beyond Meat says it will be supplier for the McPlant product line, McDonald’s has declined to confirm that claim. That has left some investors wondering whether McDonald’s might be planning to source McPlant supplies from Beyond Meat competitors.

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BYND stock has become a major subject of investor discussion on platforms like Stocktwits where investors are dissecting its third quarter earnings results. Additionally, investors on Stocktwits and other investor forums are weighing the potential impact of McDonald’s McPlant on Beyond Meat.

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Is BYND stock right for you?

The most bullish analyst sees 15 percent upside potential in Beyond Meat stock from the current level to $173. On the other hand, the most bearish analyst sees 653 percent downside in BYND stock to $55. 

Until McDonald’s confirms its McPlant suppliers, investors may not know whether Beyond Meat is in or out. It would be a boost to Beyond Meat if McDonald’s picks it as a McPlant supplier. But Beyond Meat stock could come under pressure if McDonald’s bypasses it to strike McPlant supply deal with its competitors. 

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Until McDonald’s confirms its McPlant suppliers, investors may not know whether Beyond Meat is in or out. It would be a boost to Beyond Meat if McDonald’s picks it as a McPlant supplier. But Beyond Meat stock could come under pressure if McDonald’s bypasses it to strike McPlant supply deal with its competitors. 

Finally, investors looking for other stocks like Beyond Meat that could benefit from the expanding meat substitute market have a long list of options, including Ingredion, Conagra Brands, and Archer-Daniels-Midland.

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