Beyond Meat Inc. ( NASDAQ: BYND ) has been dealing with serious production setbacks in its effort to make a vegan version of Pepperoni for Yum Brands ( YUM ). The issue is troubling with rival like Hormel ( HRL ) and Maple Leaf Foods already offering their own vegan pepperoni products, according to Bloomberg.
The pepperoni problem is said to be one of several issues in Beyond Meat's ( BYND ) alternative-meat deal with Yum Brands ( YUM ). Notably, KFC’s chicken nugget rollout was delayed and Taco Bell has yet to test BYND's carne asada in a single restaurant after the fast-food chain was reported to be dissatisfied with samples. Also of note, the McDonald's-BYND test has progressed slowly than some anticipated.
Fast-food partnerships and the revenue potential they represent are a core part of any bullish thesis on Beyond Meat ( BYND ), which has investors watching the Yum Brands and McDonald's reports with high interest.
The Seeking Alpha Quant Rating on BYND is flashing Strong sell due to low marks for valuation, profitability and earnings revisions.
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Beyond Meat may be struggling with its fast-food partnerships