Shares of Beyond Meat (NASDAQ: BYND) closed 1.2% higher on Friday despite soaring 8% in pre-market on deals with McDonald’s and Yum! Brands.
Fundamental analysis: Major partnerships announced
Beyond Meat reported fourth-quarter earnings that saw the company report a loss of $0.34 per share, which was worse than the $0.13 expected from analysts. Revenue was reported at $101.9 million to miss the expected $103.2 million.
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“I am proud of our 2020 achievements in light of the significant challenges we faced, primarily in our foodservice channel, as a result of the COVID-19 pandemic. For the full year, we grew total net revenues 37%, with sales to retail customers more than doubling versus the prior year,” Beyond Meat President and CEO Ethan Brown.
Still, shares of the company soared in pre-open after it announced partnerships with McDonald’s and YUM! Brands, a company that operates the brands KFC, Pizza Hut, and Taco Bell.
A 3-year partnership with MCD will result in BYND becoming a preferred supplier for the patty in the McPlant.
“Our new McPlant platform is all about giving customers more choices when they visit McDonald’s,” said Francesca DeBiase, McDonald’s Executive Vice President and Chief Supply Chain Officer. “We’re excited to work with Beyond Meat to drive innovation in this space, and entering into this strategic agreement is an important step on our journey to bring delicious, high quality, plant-based menu items to our customers.”
On the other hand, BYND products will be used to create “craveable and innovative plant-based protein menu items” for products at KFC, Pizza Hut and Taco Bell.
“KFC was the first national U.S. quick-service restaurant to introduce plant-based chicken when it tested Beyond Fried Chicken™ at an Atlanta-area restaurant in 2019. Since the initial rollout, KFC has expanded testing of Beyond Fried Chicken in other U.S. cities,” two companies said in the joint statement.
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Technical analysis: Testing support
Beyond Meat stock price closed 1.2% higher on Friday but still more than 9% lower on a weekly basis. In February, the BYND share price declined 18.31%.
The price action closed below the 100-DMA on Friday to likely invite more selling pressure in the near-term. The stock is now testing the crucial channel support at $145.00, with $115.00 offering new buyers an opportunity to buy BYND shares.
Beyond Meat announced weaker-than-expected results but the stock still closed in the green thanks to announced partnerships with McDonald’s and Yum! Brands.
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