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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:
- 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.
- 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.
- The product is not healthy to eat (see above).
- The BYND plant-based meat product will sell at a premium versus other menu items in restaurants, limiting consumer demand.
Short today's bounce,
KM
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