Beyond Meat teams up with Dunkin’ Donuts. Chipotle says no thank you.
arrived at select Dunkin’ Donuts stores in Manhattan last week in the form of its breakfast sausage, but the alternative meat revolution has hit a downturn in casual dining. relative
Dunkin’ Marks seemed thrilled to board the Beyond train. “We are proud to partner with this industry leader to become the first American restaurant chain to offer a Beyond Breakfast Sausage option,” Dunkin’ CEO David Hoffman said in a press release.
Beyond Meat’s shares hit an all-time high of over $200 per share on the day the Dunkin’ Sausages debuted. The expansion of distribution is essential to maintain growth and the market multiple. Dunkin’ hopes to eventually roll out the sausage to its 20,920 franchise stores. Wall Street expects sales of Beyond to grow 60% from 2019 to 2020 and values the stock at 33 times estimated 2020 sales, implying Beyond Meat isn’t just for vegans looking for flavor authentic beef or pork. Environmentally conscious carnivores may also feel the need to embrace the alternative meat; It is estimated that 14% of greenhouse gas emissions come from livestock.
But brand positioning is complicated, and Beyond isn’t the meat of every chain. To take
Chipotle Mexican Grill
“Chipotle Food with Integrity Principles includes serving real, responsibly-sourced food, classically cooked, with wholesome ingredients without artificial colors, flavors or preservatives,” a spokeswoman emailed. . “At this time, these processed plant-based alternatives do not meet our strict standards.” Chipotle introduced vegan protein “sofritas” in 2014 and says vegetarian and vegan offerings accounted for 12% of all meals sold in 2018.
Beyond Meat reports July 29. Interest in the stock is high, which may mean fireworks. The shares rose nearly 40% the day after its first quarterly report in June. But in a revolution, you never know.
Eyes on the prize
Earnings season continued as investors obsessed over an interest rate cut from the Federal Reserve this week. Stocks did little before the S&P 500 index hit a new high on Wednesday, and the Nasdaq took off on Friday. Second-quarter gross domestic product slowed to 2.1%. For the week, the Dow Jones Industrialists rose 0.1% to 27,192.45; the S&P 500 rose 1.7% to 3,025.86; and the Nasdaq Composite jumped 2.3% to 8330.21.
Former Special Counsel Robert Mueller testified before the House Judiciary and Intelligence Committees on his report on Russian interference in the 2016 election. He offered few revelations, sticking closely to his report . He stressed that he had not exonerated President Donald Trump for obstruction, called the president’s behavior during the campaign “problematic” and warned that Russia was continuing its misinformation campaign.
Raising the debt ceiling
The House passed a two-year debt ceiling deal, providing $320 billion in new spending on top of the 2011 budget bill. The deal will take the budget off the table until after the 2020 election, although the deficits are getting worse. The House is on summer vacation; the Senate is expected to pass the bill this week.
The Department of Justice announced an antitrust review of Big Tech. In addition, the Federal Trade Commission has reached an agreement with
on privacy breaches. Facebook agreed to government oversight, improved compliance and a $5 billion fine. Facebook released its results soon after, with quarterly revenue up 28%. The stock has increased.
Britain’s Conservative Party elected Boris Johnson, the former mayor of London and foreign minister, party leader and prime minister, to replace Theresa May. Johnson has been pro-Brexit bombshell, arguing he will pull the UK out of the European Union “do or die” by October 31, without a deal if necessary. He soon began remodeling his cabinet with Eurosceptics. The EU refused to renegotiate the exit conditions.
Events: PR, Hong Kong
The protests forced the ousting of Puerto Rico Governor Ricardo Rosselló, who was shot by a scandal over his involvement in vulgar online chat messages. Meanwhile, protests have continued against the Hong Kong government, with marches and intermittent violence. Trump praised Chinese President Xi Jinping for his “very responsible” response even as China appeared to begin a more violent crackdown.
Apple and Intel discuss
Apple and Intel have announced a deal that involves the chipmaker selling its smartphone modem, both patents and personnel, to Apple.
Finally, a T-Mobile deal
The long-running Justice Department approval of the $26 billion T-Mobile US-Sprint merger has finally happened. The deal involves the sale of certain Sprint assets to
creation of a fourth wireless reader. A group of state attorneys general is suing to block the deal.
SoftBank has launched a new fund, Vision Fund 2, with $108 billion in commitments and the participation of
Apple and Foxconn.
–Robert Teitelman and Dan Lam
E-mail: [email protected]