MCD traffic
MCD traffic accelerates on Adult Happy meal sales
DRI Traffic
Olive Garden sees a small boost from the Neverending Pasta Bowl pasta bowl
BYND is likely a ZERO
Last Friday, Beyond Meat announced plans to reduce its workforce by about 19%, or 200 people.
The company called it a “strategic shift in pursuit of a more sustainable growth model that emphasizes the achievement of cash-flow positive operations” or said another way consumers don't want the product. It's not just BYND, with Impossible Foods cutting its staff by 6%. Much of the problem with plant-based meat in the U.S. has been it's too expensive relative to the real thing. Early on, these companies had to charge higher price points, targeting consumers that were willing to pay higher prices to feel better about what they were consuming. There is clearly a market for plant-based meat in the U.S., and many independent restaurants and regional chains have had some success adding the products. But there have been clear indications since BYND came public that consumer demand did not warrant a permanent inclusion on the menu of major restaurant chains. The most notable examples were the failure of Burger King with its attempt with the Impossible Whopper and Dunkin’ pulling its Beyond Sausage breakfast sandwich. Of course, MCD never got past a 600-store test. Less than 10% of the U.S. population is vegan or vegetarian, meaning they must rely on meat eaters for their demand. And those consumers can easily switch back to meat if they’re not particularly pleased with what they’re being served. As of Friday, the fully-diluted market cap was $862 million with $454 million in cash. The company has $1.1 billion in debt with a maturity date of March 2027, so we have some time. That said, if the company does not go bankrupt, you can make 4x your money buying the bonds in less than five years.
