Why is Beyond Meat so cheap?

Andrew Willis: After a difficult fourth quarter, we lowered our fair value estimate for Beyond Meat (BYND) – but that’s because we are extending new product launch times at McDonald’s and Yum Brands-owned restaurants, which include KFC , Pizza Hut and Taco Bell.

There’s good potential for Beyond Meat on the fast food front, and investors selling on retail numbers could miss out when we get back to restaurants post-pandemic. Equity analyst Rebecca Scheuneman says the shift is supported by growth in U.S. restaurant sales from 26% last year – despite ongoing Covid restrictions at that time, as international sales increased by 77%.

And before you cancel retail sales, maybe wait for the company’s first major marketing campaign — or at least the return of sampling.

For Morningstar, I’m Andrew Willis.