A new analyst report suggests Dunkin’ is discontinuing its fan-favorite Beyond Meat sandwich, but the chain says it’s still available in 10 states

Dunkin beyond breakfast sandwich
  • Dunkin’ says it isn’t discontinuing Beyond sandwiches, though they are not available in every store.
  • The Beyond breakfast sandwich was launched in 2019.
  • Fans are angry about losing their favorite sandwich.
  • See more stories on Insider’s business page.

Dunkin says it has not discontinued the Beyond Breakfast Sandwich, despite a report from JP Morgan analysts.

The analyst note says that the offering is no longer on menus at stores analysts called. It no longer appears on the website or in-app menus. At least 9,000 Dunkin’ locations were previously carrying the sandwich, analysts said.

Dunkin’ says it is continuing to work with Beyond Meat, though the sandwich is not available in many parts of the US.

“We maintain a strong relationship with Beyond Meat and will continue to work together to explore innovative plant-based options to meet consumer demand for plant-based menu items,” Michelle King, Dunkin’s head of corporate communications, told Insider. “The Beyond Sausage Breakfast Sandwich continues to be available at several hundred Dunkin’ restaurants throughout the country including in California, Arizona, New Mexico, Colorado, Missouri, Nebraska, Hawaii, Utah, Kansas, and Wyoming.”

Dunkin’ first launched the sandwich in 2019, and at the time it was the biggest ever launch of a plant-based meat product by a major restaurant chain. The sandwich consisted of a Beyond Meat breakfast patty, American cheese, and an egg on an English muffin.

Fans of the sandwich are expressing their anger and sadness at not being able to get the sandwich.

Both Dunkin’ and Beyond heavily promoted the partnership when it launched.

“We are extremely proud of our partnership with Beyond Meat and thrilled to be the first U.S. quick-service restaurant to offer Beyond Breakfast Sausage nationwide. Dunkin’ is the brand that democratizes trends for America, and this latest addition to our menu gives consumers more choice to meet their evolving needs,” Dunkin’ CEO Dave Hoffmann said at the time.

Early sales looked promising. Testing went so well that Dunkin’ moved the launch from January 2020 to November 2019. During a trial run in Manhattan, the sandwich quickly became the second best selling from the menu, Irene Jiang reported for Insider.

Do you have a story to share about a retail or restaurant chain? Email this reporter at mmeisenzahl@businessinsider.com.

Read the original article on Business Insider

Market analysts warn against meme-stock ‘gambling,’ as AMC’s stock price remains decoupled from fundamentals

crime scene stock
Timothy Abero / EyeEm / Getty Images

  • Market analysts said it’s hard to predict when surges in AMC’s stock price will come to a halt.
  • “It is anyone’s guess how much larger this bubble can grow,” one analyst said.
  • AMC shares whipsawed Thursday after a record surge Wednesday that nearly doubled the stock price.
  • See more stories on Insider’s business page.

The rally in shares of AMC Entertainment, fueled by an army of retail traders, could be at an end – or not.

The world’s largest movie theater chain nearly doubled in value in a single day of trading Wednesday, adding to gains from the day and week prior, as retail investors – pooled together on sites like Reddit and Twitter – poured into the stock.

The price then whipsawed from red to green to red again Thursday after AMC announced a share sale, which initially caused the stock to plummet. The decline, one analyst said, was “to be expected.”

“The bigger it goes, the farther it’s going to fall,” said David Trainer, chief executive officer of investment research firm New Constructs.

Market analysts weighed in Thursday on the unprecedented gains in AMC that helped drive a rally in a group of meme stocks this week. The analysts said the surge in AMC’s stock price was detached from the reality of the company’s value, but when that rally will come to a halt is a gamble.

“The retail force behind this movement is still strong, so it is anyone’s guess how much larger this bubble can grow,” said Edward Moya, senior market analyst at OANDA.

Meme stock trading, he said, “is just gambling. You could easily see this come crashing in minutes time.”

Trying to apply logic to AMC’s share price is “futile,” said David Jones, chief market strategist at European trading and investing platform Capital.com.

“Who knows when the music stops?” he said. “Just don’t expect to be able to call the top in this one. We may have already seen it, but then again perhaps it doubles in price once more.”

The current trading enviornment can’t last forever, Moya said, predicting that meme stocks such as AMC would give up a lot of their gains by the end of the week.

Some retail-trader favorites have already begun to erase gains made earlier in the week. Bed Bath & Beyond, GameStop, and Beyond Meat all declined Thursday. But some meme stocks, like Tilray, BlackBerry, and Workhorse continued increasing in value.

AMC’s actual value, the analysts said, is far detached from where it’s trading.

“It’s hard to justify an equity valuation above $0,” Trainer said, citing the company’s debt load, weak earnings, and share dilution.

Moya said the stock price will likely settle below the $20 mark it surpassed last week. “The overall fundamentals are really going to hamper this stock,” he said.

But, the analysts said, the retail traders don’t care about the fundamentals of the company, which has flirted with bankruptcy in the past and struggled amid the COVID-19 pandemic as movie theaters shuttered and people opted to stay at home to watch new films.

“They call each other ‘apes.'” Trainer said. “They flaunt the fact that they don’t care about fundamentals.”

Read the original article on Business Insider

AMC surges past $30 Friday amid blistering five-day rally bolstered by Reddit

AMC empire 25 NYC
NEW YORK, NY – MARCH 15: General view of atmosphere outside the AMC Empire 25 theater on March 15, 2016 in New York City. (Photo by Noam Galai/Getty Images)

  • AMC Entertainment rallied as much as 34% at Friday open, continuing a five-day hot streak.
  • The stock surged past $30, the highest in years.
  • AMC stock price has tripled this week amid renewed hype from retail traders.
  • See more stories on Insider’s business page.

Shares of AMC Entertainment resumed their blistering rally Friday, skyrocketing more than 30% to surge past $30 – the highest price in years.

As of Friday, AMC has been on a five-day hot streak amid hype from retail traders on Twitter and Reddit, causing the stock price to triple since the beginning of the week. The shares reached a high of $36.35 Friday. Short sellers have taken a major hit.

On Twitter, the hashtags #AMCSTRONG, #AMC500K, and #AMCAPES have been trending. Meanwhile, on Reddit’s Wall Street Bets forum, AMC was the most talked-about stock, according to HypeEquity data. Retail traders posted familiar phrases like “diamond hands” and “to the moon” in reference to the stock’s continued rally.

AMC stock gains have caused major losses for short sellers with short interest in the stock at 21%, according to MarketBeat data.

With Thursday’s rally alone, AMC shorts lost more than half a billion dollars, data from market research and data firm ORTEX revealed.

Meme stocks, popularized by retail traders on Wall Street Bets, rallied broadly this week, with gains in GameStop, Virgin Galactic, BlackBerry. and relative new favorite, Beyond Meat, all rising.

The meme stock rally this week has left short sellers with $2.76 billion in losses from GameStop, AMC and Virgin Galactic, ORTEX said.

The rally in AMC shares began early in the week when the company’s once largest shareholder, private Chinese conglomerate Dalian Wanda Group, sold nearly all of the rest of its stake. Redditors cheered the newly available shares, saying the company was now theirs.

Bloomberg reported that the share rally might help AMC pay off its $10 billion in debt, as investors suggest the theater chain should sell more shares to pay down or refinance.

Read the original article on Business Insider

Don’t short meme stocks as retail and institutional investors rotate back into Reddit trades, market strategist says


Traders shouldn’t be shorting so-called meme stocks amid a rotation back into Reddit trades from both institutional and retail investors, according to Joe Terranova, senior managing director and chief market strategist at Virtus Investment Partners.

Terranova sat down with CNBC on Thursday to discuss the recent resurgence of meme stocks and said when it comes to the social media favorites, “the first thing you don’t do is you don’t short these stocks.”

To his point, on Tuesday alone, AMC and Gamestop’s rise caused short sellers to lose $618 million in a single day, according to data from ORTEX.

The market strategist went on to describe the rotation back into Reddit favorites like GameStop and AMC from both retail traders and institutions after cryptocurrencies’ recent leverage unwinding.

Despite a common belief that these trades are run by the retail community, Terranova says institutions are just as involved.

“Let’s not think that this is just all retail traders. This is institutional money, this is hedge funds, they’re participating on the long-side, and I don’t think you fight it,” he said.

When asked whether this was a short-term trade or a “fundamental investment” Terranova laughed and said it was clearly just a trade as far as institutions are concerned.

The strategist noted that there are algorithms used by institutions that are recognizing price momentum in meme stocks and “positioning accordingly on the long-side.”

Shares of Gamestop are up more than 35% this past week as increased chatter on Reddit, and other social media platforms has brought a second wind to the video game retailer.

Fellow Reddit darling AMC‘s stock is also on fire, surging more than 45% since last Thursday.

Blackberry has seen a resurgence of late as well, with Reddit traders using rocket emojis to celebrate its return to around $10 per share.

Terranova says as these Reddit stocks rise, the key question isn’t how to trade them, but rather: what’s next?

“The question now becomes where else do they target? Do they go to Beyond Meat which has a 24% short interest? Do they look at Roblox, which is trading incredibly strong? I think ultimately that they do, but absolutely you don’t short these stocks,” Terranova said.

Read the original article on Business Insider

Beyond Meat slumps after the fake meat company reports a wider than expected loss for the 1st quarter

FILE - In this June 27, 2019, file photo a meatless burger patty called Beyond Burger made by Beyond Meat is displayed at a grocery store in Richmond, Va. Beyond Meat reports financial earns Monday, Oct. 28. (AP Photo/Steve Helber, File)
FILE – In this June 27, 2019, file photo a meatless burger patty called Beyond Burger made by Beyond Meat is displayed at a grocery store in Richmond, Va. Beyond Meat reports financial earns Monday, Oct. 28. (AP Photo/Steve Helber, File)

Beyond Meat shares tumbled on Friday after the plant-based meat producer announced a wider than expected loss for the first quarter of the year. Customers, including restaurants, bought less of the company’s meat substitute, which they stockpiled during the height pandemic.

Share were down as much as 10% in premarket trading, before paring losses to around 4% after the opening bell.

The El Segundo, California-based company reported revenue of $108.2 million versus the $113.18 million Bloomberg analysts expected and an adjusted loss of $0.42 per share compared to the $0.21 analysts predicted.

Its first-quarter net loss stood at $27.3 million, or $0.43 cents per share, lower than the $1.8 million, or $0.3 per share, net income it reported a year earlier.

This is the third straight quarter that Beyond has reported losses that are wider than expected.

The company attributed the decline to the restaurant industry, which suffered as restrictions on dining out tightened. But Beyond’s founder and CEO Ethan Brown said he is optimistic about seeing a “thaw” in the near future.

“More near-term, we are cautiously returning to the practice of issuing guidance, starting with net revenues, as we have recently begun to see a slow thaw occurring within foodservice both domestically and in certain international markets,” Brown said in a statement.

For the second quarter, the company forecast net revenues in the range of $135 million to $150 million, an increase of 19% to 32% compared to the same period in 2020. But it did not provide full-year guidance for 2021.

US food service sales tumbled 26% to $16.7 million while international foodservice sales slipped 44% to $10.4 million.

US retail sales climbed 27.8% to $63.8 million while international retail sales rocketed 189% to $17.2 million, accounting for a quarter of the company’s revenue.

Beyond has production centers in China and the Netherlands and sells its products in more than 80 countries.

Its rival, Impossible Foods, is exploring a public listing that could give the company a valuation of $10 billion, Reuters reported in April.

Beyond Meat was trading $114.93 at 10:12am E.T., lower by around 4%.

Read the original article on Business Insider

CVS is investing in healthy food and Beyond Meat burgers, which could drastically improve quality food choices to Americans in “food deserts”

beyond meat cvs
CVS has more locations nationwide than Walmart and Kroger combined.

  • CVS is bringing Beyond Meat to 7,000 stores and increasing gluten-free, vegan snacks and foods.
  • CVS, which has more US stores than Walmart and Kroger combined, could better serve “food deserts.”
  • “CVS is ubiquitous in neighborhoods and communities across America,” Beyond Meat told Insider.
  • See more stories on Insider’s business page.

CVS is bringing healthy foods and meat-alternatives to communities across America.

The pharmacy chain and Beyond Meat just announced a partnership that would bring meat-alternative burgers and meatballs to 7,000 stores nationwide. CVS will also add 60 new “better for you” snacks and 50 new frozen foods that are vegan, organic, gluten-free, plant based, and zero-sugar-added.

Now valued at $8.7 billion, Beyond Meat became the first plant-based meat-substitute company to go public just two years ago. The company has continued to expand by partnering with McDonald’s and Taco Bell, as traditional meat seller Tyson rushes to catch up with its own plant-based line.

The deal may suggest Beyond Meat decreasing its reliance on foodservice. Foodservice sales through restaurants that sell Beyond Meat, including Carl’s Jr. and BurgerFi, dropped 31% year-over-year in 2020, CEO Ethan Brown said on a recent earnings call.

Revenue from retail, however, increased by 108% between 2019 and 2020, but Brown said the trend will drop in 2021 as the pandemic subsides. “We’ve got a lot of room still to grow in retail,” Brown said.

The CVS partnership, which represented the first pharmacy Beyond Meat sold at, could be its first step into retail growth.

“CVS is ubiquitous in neighborhoods and communities across America, and Beyond Meat is proud to partner with them as our first pharmacy partner to bring increased choice and access to nutritious food options to their consumers,” a Beyond Meat spokesperson told Insider. “The addition of the Beyond Burger and Beyond Meatballs at CVS aligns with CVS’ larger effort to help its millions of customers make healthier choices.”

How bringing Beyond Meat to CVS could bring meat-alternatives to food deserts.

CVS sells more groceries than Trader Joe’s and Whole Foods, the Guardian reported, due to the store’s prevalence in low-income areas that don’t have access to high-end grocery stores.

CVS has nearly 10,000 locations in the US, D.C., and Puerto Rico. Kroger, the company’s largest supermarket, has just 2,750 locations. Walmart, the country’s largest retailer, has 5,342 stores as of January 2021 – meaning CVS has more stores than Kroger and Walmart combined.

The lack of quality grocery stores in disproportionately low-income areas result in “food deserts,” or areas more than a mile from fresh produce-sellers that rely more on processed and pre-packaged food.

Diets that limit processed foods and sugary beverages are associated with higher life expectancy. But there’s twice as many supermarkets carrying fresh produce in higher-income areas than lower-income ones, per non-profit World of Vegan, and just 2% of meat alternatives are available in low-income areas.

Nutritionists told Insider’s Aria Bendix that Beyond Meat, though processed and just as caloric as beef burgers, is high in fiber and protein, and can provide a better alternative to red meat. Beyond Meat can also lead to fewer instances of food poisoning than when consuming beef.

Bringing Beyond Meat and other “better for you” snack options to CVS locations might lessen the reliance on junk food in “food deserts.” Better access to nutritional food would be most beneficial to Black and Latino Americans, whose communities have fewer supermarkets than their white counterparts, per Johns Hopkins.

“The expanded assortment of food items is the latest way we serve as a premier health and wellness destination, making it easier for millions of customers to access healthier choices and meal solutions without having to make extra trips to specialty and grocery stores,” a CVS spokesperson said in a statement.

Read the original article on Business Insider

Beyond Meat climbs 5% after saying it will broaden its product offerings at Walmart

Beyond Burger Hero
  • Beyond Meat shares climbed 5% Tuesday after the company announced an expansion of its product offerings at Walmart.
  • Beginning this week, it will be offering its Beyond Sausage Hot Italian to more than 400 Walmart stores.
  • Beyond Meat will also be expanding the frozen Cookout Classic value-pack.
  • Sign up here for our daily newsletter, 10 Things Before the Opening Bell

Beyond Meat shares climbed 5% Tuesday after the plant-based meat producer announced it is expanding its product offerings at Walmart.

Beginning this week, the Los Angeles-based fake meat company will be introducing its Beyond Sausage Hot Italian to more than 400 Walmart stores across the US, the company revealed in a statement Tuesday. Beyond Meat, founded in 2009, will also be expanding its frozen Cookout Classic value-pack to approximately 500 stores.

Beyond Meat’s partnership with the retail giant started in 2015. The increased distribution, the second in the past year, is part of Beyond Meat’s effort to meet consumers’ demands for plant-based products as more people become more health and environmentally conscious. The pandemic has also contributed to the rise in demand as more people cook at home.

Beyond shares climbed 2.37% to $138.50 as of 2:48 PM ET.

Read the original article on Business Insider

Walmart is looking for a new ad agency

Hi and welcome to Insider Advertising for March 1. I’m senior advertising reporter Lauren Johnson, and here’s what’s going on:

If this email was forwarded to you, sign up here for your daily insider’s guide to advertising and media.

Tips, comments, suggestions? Drop me a line at LJohnson@insider.com or on Twitter at @LaurenJohnson.

walmart new test stores
A Walmart personal shopper using the handheld device.

Walmart will shop around for an agency to handle its US media business, one of the ad industry’s biggest prizes

Read the story.

McDonald's PLT Canada
McDonald’s previously paired with Beyond Meat to offer a plant-based burger in Canada.

Beyond Meat just signed a multi-year deal with McDonald’s on the McPlant Burger, and said it would also create plant-based menus for Taco Bell, KFC, and Pizza Hut

Read the story.

atypical netflix
Keir Gilchrist and Nik Dodani appear on “Atypical.”

Netflix’s diversity study revealed an equity gap behind the scenes, and showed that LGBTQ+ and characters with disabilities are ‘rare’

Read the story.

More stories we’re reading:

Thanks for reading and see you tomorrow! You can reach me in the meantime at LJohnson@insider.com and subscribe to this daily email here.

Read the original article on Business Insider

Beyond Meat rallies 13% after McDonalds and Yum Brands partnerships overshadow weak sales

McDonald's PLT Canada
McDonald’s previously paired with Beyond Meat to offer a plant-based burger in Canada.

  • Shares of Beyond Meat gained as much as 13% Friday after announcing partnerships with McDonald’s and Yum! Brands. 
  • The faux-meat producer also reported fourth-quarter sales that missed expectations.
  • Watch Beyond Meat trade live here.

Shares of Beyond Meat jumped as high as 13% to $162 a share Friday after news of partnerships with two of the largest fast-food chains overshadowed weak fourth-quarter sales. 

The stock fell sharply after the Thursday closing bell when the faux-meat maker announced sales in the fourth-quarter were $101.9 million, compared to the average estimate of $103.6 million. But news that Beyond Meat is partnering with both McDonald’s Corp. and Yum! Brands cause shares to retrace their losses.

Beyond Meat and McDonald’s will enter into a three year agreement that will place the  faux-meat maker as the preferred supplier for the patty in the McPlant burger. McDonald’s and Beyond Meat will also explore co-developing other plant-based menu items like plant-based chicken, pork, and egg substitutes, according to a news release.

This announcement solidifies the relationship between Beyond Meat and McDonald’s that began in 2019 with a Canadian test run of a plant-based burger. It also clarifies Beyond Meat’s role as the supplier for the McPlant patty, which confused investors in November when the McPlant was first announced

Beyond Meat also will co-create plant-based menu items for Yum! Brand’s subsidiaries KFC, Pizza Hut, and Taco bell over the next several years. The partnership continues the relationship between Beyond Meat and the fast food giant.

In 2020 Pizza Hut launched two faux-meat pizzas, and in January Taco Bell announced it was working with Beyond Meat to create a plant-based protein.

Beyond Meat’s foodservice sales were down nearly 43% year on year as the COVID-19 pandemic decreased restaurant foot traffic. CEO Evan Brown said this impacted “near-term profitability.”

Shares pared back gains after the opening bell and were trading around $151 as of 9:40 a.m. EST.

Analysts from Bank of America said that Beyond Meat management indicated that the fast-food partnerships will not have a material impact on 2021 results given the timing of the announcement.

“Overall we see sales improving in 2021 as foodservice sequentially improves while retail faces tough comps. We expect margins will see pressure driven by increased investments and lower price points in retail,” BofA said. The firm has an “underperform” rating for the stock and price target of $81. 

Read the original article on Business Insider

Beyond Meat stock leaps 16% after Taco Bell announces partnership with the faux-meat producer

Taco Bell Veggie Items 2
  • Beyond Meat rose as much as 16%, to $144.78 a share, after Taco Bell announced it’s partnering with the faux-meat producer to explore plant based protein menu items on Thursday.
  • Beyond Meat’s stock surge comes after a stellar 2020 which recorded a 65.3% yearly gain. The plant-based meat company has also gained over 100% since its IPO in May 2019.
  • Taco Bell chose to team up with Beyond Meat as a category leader with a proven track record of attracting younger customers with its irresistibly delicious plant-based offerings,” Taco Bell said in a press release.
  • Watch Beyond Meat trade live here.

Beyond Meat rose as much as 16%, to $144.78 a share, after Taco Bell announced it’s partnering with the faux-meat producer to explore plant based protein menu options on Thursday.

Taco Bell said that it’s partnering with Beyond Meat to create an “innovative new plant-based protein that will be tested in the next year.” 

Taco Bell’s parent Yum! Brands gained as much as 2.3% on Thursday.  

“Taco Bell chose to team up with Beyond Meat as a category leader with a proven track record of attracting younger customers with its irresistibly delicious plant-based offerings,” the Mexican food chain said in a press release. 

Beyond Meat’s stock surge comes after a stellar 2020 for the faux-meat company. It soared 65.3% last year, and has also gained over 100% since its IPO in May 2019. 

Read more: Cathie Wood’s ARK Invest runs 5 active ETFs that more than doubled in 2020. She and her analysts share their 2021 outlooks on the economy, bitcoin, and Tesla.

The company’s stock often experiences wild swings when investors hear plant-based meat news.

In November, it sold off as much as 10% when McDonald’s announced it was creating its own plant-based burger, the McPlant. Later in the day, Beyond Meat reversed all its losses and jumped 9% after the company claimed it “co-created” the McPlant.

Taco Bell is just one of the many fast-food chains Beyond Meat has teamed up with.

The faux-meat producer announced last week that its Beyond Breakfast Sausage Sandwich is available in Starbucks chains in the UK. It also introduced Beyond Meat sandwiches in Starbucks chains in the UAE and Kuwait. 

Read more: Morgan Stanley says to buy these 26 economically sensitive stocks poised to outperform as oil prices spike 10% by year-end

Read the original article on Business Insider