Yahoo Finance Alert: Beyond Meat (NASDAQ:BYND) Could Send This Canadian Stock Soaring Into the Stratosphere!
Beyond Meat (NASDAQ:BYND) stock recently nosedived, losing around 25% in a single day after its beyond-incredible run up from its IPO price. With double-digit percentage moves now going in either direction on any given day, the white-hot stock has become too far hot to handle for most Foolish investors who aren’t interested in gambling.
Shares of Beyond Meat were and still are insanely valued. With the valuation being deemed as “beyond stupid” by the infamous short-seller Andrew Left, I warned investors that the name was “one of the most expensive stocks that an investor will ever see outside of the crazy world of marijuana.”
Back in May, I’d suggested that Canadian investors should hop on the alternative meat bandwagon by backing up the truck on shares of Restaurant Brands International (TSX:QSR)(NYSE:QSR), the parent company behind Tim Hortons, Burger King, and Popeyes Louisiana Kitchen, rather than owning shares of Beyond Meat directly. My reasons were simple: Restaurant Brands stock was attractively valued, and the company was also a way to play the rise of Beyond Meat’s competitors like Impossible Foods, and potentially other up-and-coming meatless meat players as they came to be.
“Seeing as Restaurant Brands is a great way to play all potential players in the meatless meats market, I’d say it makes a heck of a lot more sense to buy shares of Restaurant Brands at 18.2 times next year’s expected earnings and 5.9 times sales than to place a bet on one meatless meat player at 50 times sales,” I said in a prior piece. “For Restaurant Brands, the rise of meatless meat will supercharge menu innovation and will serve as rocket fuel for the stock that’s been picking up major traction in recent months.”
Fast forward to today, and meatless meats have been fuelling the latest upward move for Restaurant Brands, which jumped 2.14% in a single trading session following news that Tim Hortons inked a deal with Beyond Meat to bring its plant-based sausages to breakfast sandwiches across approximately 4,000 of its Canadian locations.
Indeed, the deal was also a boon for Beyond Meat stock, which recovered some of the ground lost after its 25% flop. Given that Beyond Meat will likely continue to draw in big crowds, I see comps at Tim’s skyrocketing into the stratosphere in coming quarters thanks to arguably the most innovative menu item to date. The only question is this: does Beyond Meat have enough meatless sausage patties to provide to thousands of Tim Hortons locations in a timely fashion?
In any case, Tim Hortons is going to be cashing in on the novelty of alternative meats, and I suspect shares of QSR will easily rocket past $100 by year-end as Beyond Meat props up the fast-food chain that’s already growing at a ridiculous rate.
Stay hungry. Stay Foolish.
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Fool contributor Joey Frenette owns shares of RESTAURANT BRANDS INTERNATIONAL INC. The Motley Fool owns shares of RESTAURANT BRANDS INTERNATIONAL INC and has the following options: short October 2019 $82 calls on Restaurant Brands International.
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