Dunkin Donuts discontinued Beyond Meat Inc’s (NASDAQ: BYND) sausage products at most of its U.S. stores on Thursday. Beyond Meat shares were seen slightly under pressure in after-hours trading.

The stock has jumped from $101 per share to around $150 per share in the past six weeks. Interest in BYND has also surged on the Reddit forums in recent weeks.

Ken Goldman’s comments on CNBC’s “Closing Bell”

According to the senior equity analyst Ken Goldman of JPMorgan Chase & Co, the move must have been attributed to waning consumer demand. On CNBC’s “Closing Bell”, he said:

“No restaurant would cancel the product at least in most of their stores if the demand were that great. If demand were fantastic, it would have done much better.”

Goldman said it was very unlikely that the discontinuation of Beyond Meat’s sausage products at Dunkin Donuts was attributed to pricing, promotion, or any other factor. Beyond Meat had partnered with Dunkin in 2019. Commenting on the price action and the future outlook for BYND, the JPMorgan expert said:

“I’m surprised the stock is hanging in there today. I think it’s impressive. But I’m not sure why it’s hanging in there. They just lost 8,000 plus stores. So, it’s a very difficult stock to forecast. It is almost exclusively loved by retail investors, and they’re a little more erratic sometimes compared to the institutional investors.”

Goldman has a price target of around $100 on BYND

Dunkin was one of the largest partners of Beyond Meat in the restaurant industry. While the plant-based meat substitutes producer hasn’t disclosed the percentage of sales it drove from Dunkin, the announcement, as per Goldman, isn’t a good sign for the plant-based meat companies.

“We’ve seen McDonald’s Canada test out the Beyond burger that didn’t stick. We saw Tim Hortons in Canada test out the Beyond burger that didn’t stick. We haven’t seen McDonald’s, even though they’ve partnered with Beyond, launch anything major yet. And the Impossible Whopper seems to be doing okay, but not nearly as well as I think Burger King might have hoped for at this point.

Goldman currently has a price target of around $100 on Beyond Meat stock. At the time of writing, the California-based company is exchanging hands at $144 per share. This compares to its year-to-date high of $192 per share in the last week of January 2021. Beyond Meat currently boasts a market cap of $9.10 billion.  

The post Analyst says discontinuation of Beyond Meat products at Dunkin stores speaks to waning consumer demand appeared first on Invezz.



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