• Investing Insights & Exclusive Offers → Get Our FREE “Market Brief”
    Sign-up for our free weekly newsletter. Get unparalleled investing insights and exclusive Summer Sale discounts on Hedgeye research.

    Disclaimer: By joining our email marketing list you agree to receive marketing emails from Hedgeye. You may unsubscribe at any time by clicking the unsubscribe link in one of the emails. Use of Hedgeye and any other products available through hedgeye.com are subject to our Terms Of Service and Privacy Policy

Takeaway: We are adding Beyond Meat to the short side of Investing Ideas today.

Hedgeye CEO Keith McCullough is adding Beyond Meat (BYND) to the short side of Investing Ideas. Below is a brief note.

As the US economy digs deeper into #Quad4 in Q3, the short selling opportunities get tastier. Tasty Burgers, or not? Howard Penney doesn't buy the Beyond Meat (BYND) FOMO and hype at this price.

From a recent Institutional Research note, here are some of Hedgeye Jedi veteran Penney's concerns:

  1. The excitement of early movers will wane quickly (vegans represent less than 5% of the population).  Other consumers may try the product once, but converting meat consumers will take longer if it even happens at all. 
  2. It's Operationally complex for restaurant to add the product to the menu (McDonald’s said it's operationally complex and will take its time understanding the opportunity).  The ex-CEO of MCD is on the board of BYND, but he was fired by the company for poor performance.  For this reason, it’s not a given that MCD will test the BYND product.
  3. The product is not healthy to eat (see above).
  4. The BYND plant-based meat product will sell at a premium versus other menu items in restaurants, limiting consumer demand.  

Short today's bounce,