Shares of Beyond Meat Inc. pulled back 5.5% in premarket trade Tuesday, after J.P. Morgan analyst Ken Goldman backed away from his bullish call on the maker of plant-based meat alternatives, citing concerns over valuation.
Beyond Meat said the launch is consistent to its approach that works to close the gaps between its plant-based meats and their animal protein equivalents through "rapid and relentless innovation".
Beyond Meat's projections also prompted at least three brokerages, including J.P. Morgan's Goldman, to raise their price targets. "I don't see any material obstacle and I don't see any manufacturing obstacle to be able to. take on numerous largest [quick serve restaurants] out there", Brown said on the call.
In other Beyond Meat news, insider Dariush Ajami purchased 2,000 shares of the company's stock in a transaction on Monday, May 6th. They referenced a note from last week in which they said revenue and profit potential in Beyond Meat's shares would eventually be priced in, adding, "we think this day has arrived".
Among big restaurant chains, Burger King has been testing since April a vegetarian version of its flagship "Whopper", while McDonald's has unveiled a meatless burger in Germany.
There might be room for all of them.
Beyond Meat has surged over 69% in two days since it forecast overall sales in 2019 to more than double. Impossible Burger is arguably the best known of the bunch thanks, in part, to its "bleeding" plant-based burgers.
And demand is expected to continue to grow. Consulting firm Euromonitor predicts worldwide sales of meat substitutes will increase 22 per cent by 2023 to a total of US$22.9 billion.
The alternative burger wars are escalating too, on the technological front.
The burger patties and sausages of the Californian company that are made from plant proteins have stormed the market, and even the stock market since the company's listing last month on the Nasdaq composite. The burger, according to the company, "features marbling created to melt and tenderise like traditional ground beef".
Separately, Beyond Meat said on Tuesday it would start selling a new version of its flagship vegan burgers, which look and cook more like traditional beef, as it battles for space in the meat section of US grocery stores.