Beyond meat (BYND) – Get report Shares fell in a bullish market Monday morning, after Barclays analyst Benjamin Theurer downgraded the seller of plant-based meat to an underweight overweight rating.
Theurer’s move was based on “short and medium-term headwinds, primarily related to the closure of food service channels due to blockages,” he wrote in a comment quoted by Bloomberg.
The restaurant / food service sector has accounted for most of Beyond Meat’s recent sales growth. In 2019, the restaurant / food service accounted for approximately half of the company’s revenue.
As for the coronavirus pandemic, it led to restaurant closings that obviously hurt sales, and “success on this channel may be too high for the retail channel to fully compensate,” Theurer said. He said the food service industry will not recover until next year.
Beyond Meat shares fell last week after McDonald’s (DCM) – Get report He confirmed that he had removed his Beyond Meat burger trial in Canada.
Between September 30 and April 6, McDonald’s launched two consecutive tests of its PLT burger (plant, lettuce, and tomato) in dozens of restaurants in Ontario.
The trial was only scheduled for a 12-week race, a spokesman for Beyond Meat told TheStreet: “We can only comment overall and share that we are satisfied with the test.”
However, the trial ended without public comment from McDonald’s, leaving hamburger fans wondering where the Beyond Meat pie had gone.
Two weeks ago, Beyond Meat introduced a summer cut in its hamburger retail prices.
Beyond Meat shares recently traded at $ 134.00, down 5.42%. The stock has soared 114% in the past three months.
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