Bullish options flow was detected in BYND stock AGAIN on January 10, 2020.
The options flow went crazy in BYND stock after McDonald’s posted on its website on January 8, 2020, that it was expanding its plant-based burger offering to 52 restaurants. McDonald’s (MCD) said it is expanding the global test of its plant-based burger to include 52 restaurants in Southwestern Ontario, starting January 14, for 12 weeks. The P.LT., which stands for Plant. Lettuce. Tomato., is made with a Beyond Meat (BYND) plant-based patty that has been crafted exclusively by McDonald’s, the company said in a statement. The global P.LT. test first launched last September in 28 restaurants in London, Ontario and the surrounding areas. The additional restaurants now participating in the test include selected locations in Kitchener-Waterloo, Guelph and surrounding areas, while the majority of the restaurants that were part of the initial test in London and nearby towns will continue to offer the P.L.T. without interruption. As of January 14, the P.L.T. will be priced at C$5.99 plus tax. “The initial test of the P.L.T. allowed us to learn more about guest demand and how to integrate this new menu item into restaurant kitchen operations, while delivering the P.L.T. to our guests with the level of quality and craveability they know and love from McDonald’s,” said Jeff Anderson, Chef, McDonald’s Canada. “As a test and learn company, the McDonald’s expansion of the P.L.T. into more restaurants in the Southwestern Ontario region will help us learn more about our guests’ tastes while continuing to provide variety within our menu.” Source: https://news.mcdonalds.ca/press-releases-stories/mcdonalds-expands-test-plt-now-52-restaurants-across-southwestern-ontario
Reuters picked up the story and wrote that McDonald’s (MCD) is expanding its pilot of plant-based meat burgers using Beyond Meat (BYND) patties in 52 restaurants across Kitchener-Waterloo, Guelph and nearby areas in Canada. McDonald’s rolled out plant-based meat burgers in 28 Canadian restaurants in October. Source: https://www.reuters.com/article/us-mcdonald-s-beyond-meat/mcdonalds-expands-beyond-meat-burger-trial-to-52-more-outlets-in-canada-idUSKBN1Z71F7?feedType=RSS&feedName=businessNews
Bernstein analyst Alexia Howard put in excellent words what investors were thinking. She said that Beyond Meat’s (BYND) public float has increased to 65% of shares outstanding after the lock-up expiry versus 15% at the initial public offering, which makes the shares more investable now. Alexia believes BYND stock’s risk versus reward is skewed towards the upside, especially if plant-based meat becomes more price competitive versus regular meat as African Swine Fever in China drives global protein prices up. She said a key question is whether McDonald’s (MCD) will partner with Beyond Meat in the U.S., and that such an event could add $168M, or 60%, to Beyond Meat’s fiscal 2019 sales guidance of $265M-$275M. The analyst thinks the fair multiple for Beyond Meat is 8 to 10 times sales. This implies a fair value of $84 to $104 per share in her base case and $105 to $130 per share assuming the McDonald’s partnership materializes. She has an Outperform rating on Beyond Meat with a $106 price target.
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