Tag Archives: Burger King

Tyson Foods will roll out a new burger and compete with Beyond Meat this summer

One of the fastest growing food companies in the United States rang the Nasdaq MarketSite bell in Times Square last week. Beyond Meat Inc offers a range of revolutionary plant-based meats. They build meat directly from plants.

“Today we become the first plant-based food company to list on Nasdaq, marking an important milestone in our mission of making plant-based meat accessible globally,” founder and chief executive officer of Beyond Meat, Ethan Brown said.

“With this progress we are one step closer towards becoming the generation that seperates meat from animals, unlocking the next era in the American story of innovation, disruption, and growth. We have always been a consumer driven brand and we are excited to invite the brand`s longtime fans and supporters to join in on our vision for the Future of Protein. Our goal is for people everywhere to have access to the health and environmental benefits of our delicious plant-based meats,” Ethan said.

Beyond Meat has received venture funding from Bill Gates, Leonardo DiCaprio, Biz Stone, the Human Society and Tyson Foods to name a few. The company began selling its chicken-free mock chicken products in Whole Foods across the US in April 2013.

In 2014 it developed a Beyond Beef product. The Beast Burger was available in February 2015. Beyond Sousage became available nationwide in January 2018, and People for Ethical Treatment of Animals named Beyond Meat as its company of the year for 2013.

The Beyond Burger contains 20 grams of protein and has no soy, no gluten, no cholesterol, and half the saturated fat of an 80/20 beef burer. However, it contains five times as much sodium as unseasoned hamburger meat and one dietician argued that the processing of the vegetarian ingredients could couase the loss of valuable nutrients.

Tyson Foods purchased a 5% stake in Beyond Meat in October 2016, but it sold its stake and exited the investment in April 2019, ahead of Beyond Meat`s IPO. Later on this summer, Tyson Foods will start to competed with Beyond Meat while they will roll out its own meatless products.

Their biggest competitor is Impossible Foods with their Impossible Burger. They announced that they were teaming up with Burger King to produce their own Impossible Whopper as a meny item. Not only that; even Ikea are jumping on this trend wagon.

Ikea said a plant-based Swedish meatball is already in the works and will be available early next year.

Americans are trying to cut down on their meat consumption and incorporate more plant-based foods in their diets and there is no doubt that plant-based foods gives people health benefits. Standard burgers are high in fat and cholesterol but plant-based foods are not.

Beyond Meat uses 100% natural ingredients while some of their competitors use genetically modified soy leghemoglobin. This ingredient has had a controversial history, with the FDA flip-flopping on whether it was safe for consumption.

The U.S meat substitute market is worth about $1,44 billion and by 2023, the market is expected to grow 74% ot $2,5 billion. Beyond apologized for shortages in 2017 and 2018, and Impossible Foods did the same last week, so it can be difficult for them all to meet the demand in the future.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shiny bull. The author has made every effort to ensure accuracy of information provided; however, neither Shiny bull nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Shiny bull and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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McDonald`s is growing

McDonald`s (MCD) is growing but that is slowly. It`s share price moved only 8% in 2013, and McDonald`s rewarded its shareholders with a 10% increase to its dividend. The surged 4% YTD. They delivered a high return on equity and their growth in its top and bottom lines was decent.

MCD

McDonald`s holds a market share of 31% in the fast food industry. How can McDonald`s continue to grow? Because the domestic market is saturated, they are now expanding in emerging markets, particularly China, where they have a great opportunity.

The U.S fast food industry is expected to grow 10% during the period of 2013 – 2018. Emerging markets are attractive to fast food players due to their large populations, fast population growth, concentration of younger consumers and growing demand for Western diets.

China is important for McDonald`s and it is the third largest market for the company after the U.S and Japan. They holds a 15% market share of China`s fast food market. They experience a strong growth in the region.

China`s fast food & takeaway market grew 80% from 2007 – 2012 to RMB 1 trillion ($162 billion). The market is expected to hit RMB 1,8 trillion ($292 billion) by 2017. All this is driven by economic growth in China, and McDonald`s is investing heavily in China to benefit from this growing market.

McDonald`s will open 1,600 new restaurants around the globe and spend $3 billion this year. China will get one of the biggest shares. They will open 300 locations in China, and that`s up from 250 last year and quadruple the number in 2004. Their goal is to have more than 2,000 restaurants in China by the end of 2014.

McDonald`s share price and earnings have underperformed relative to the S&P 500 and restaurants peers over the last 12 months. Have a look at the chart below. I have compared McDonald`s and S&P 500 so you could see by yourself.

MCD vs SPX

(Picture: McDonald`s vs S&P 500)

In my opinion; both McDonald’s and Burger King is now trying to be everything for everyone. Can you imagine Burger King selling you a salad? Or a wrap? Come on; what`s next? For all I know, they will start to sell sushi next week. In-N-Out Burger, Chick-fil-A and Five Guys haven`t changed their menu in years. A big menu is making McDonald`s slower.

Many switch to restaurants perceived as more natural, simple and healthy, like Chipotle Mexican Grill (CMG) or Taco Bell which is built on this trend. McDonald’s franchisees lose out and this will be a slowly process as franchisee satisfaction is driven so largely by cash flow. McDonald’s need to take drastic action on their meny complexity and food integrity. Before that I expect the share price to languish.

Reports today:

10:30 a.m EST Crude Oil Inventories
01:01 a.m EST 10-y Bond Auction
02:00 a.m EST Fedral Budget Balance

 

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shiny bull. The author has made every effort to ensure accuracy of information provided; however, neither Shiny bull nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Shiny bull and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

 

 

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