Analyst Note
| Rebecca Scheuneman, CFA |No-moat Beyond Meat reported 69% sales growth in the second quarter, with sales to retailers (55% of year-ago quarter sales) up 192%, while food-service sales (45%) fell 59%, as the firm is heavily exposed to hard-hit full-service independent restaurants (70% of its mix compared with 30% quick-serve chains). We initially expected McDonald's would launch a Beyond Meat burger across its U.S. restaurants this summer, but we now think the launch is likely to occur next summer, once the coronvirus disruption has subsided. As McDonald’s executives have consistently said that a plant-based burger will be launched eventually, we remain confident the launch will occur, although the timing is admittedly difficult to pinpoint.