Based on the updated S1 it seems a market cap of $381M for rev. of $88 M in 2018 which I find to be fair for the industry and growth. Rev. has grown very rapidly 133% CAGR last 2 years. Company is very different from the usual ones considered here. It has 20% gross margin (improving trend), and negative cash flow. 50 billion burgers consumed in US alone every year, many restaurants are starting to come up with a good Veggie burger alternative they are going with this or the competitor Impossible burger. I don’t think this is a fad.
Based on the updated S1 it seems a market cap of $381M for rev. of $88 M in 2018 which I find to be fair for the industry and growth. Rev. has grown very rapidly 133% CAGR last 2 years. Company is very different from the usual ones considered here. It has 20% gross margin (improving trend), and negative cash flow.
Great revenue growth. But when I saw the GMs, I stopped looking at the S-1. I spent about 20 seconds on it. I’m passing.
Beyond Burger is an ok product. Not really at all like meat.
When “The Impossible Burger” finally scales, which is incredibly close to the consistency and taste of meat, it even feels like meat when you handle it, then a real meat substitute will be available.
I’m not sure what their hold up is, but it’s coming.
But when I saw the GMs, I stopped looking at the S-1
It is the nature of the business. Even a mature company with good fundamentals like HRL has 20% GM and 12% operating margins. That is why you have a P/S of 4.3 at the mid point…
I’m a Chef for a wedding venue and some guys came in pitching us this impossible burger—it’s the real deal. Can’t vouch for anyone else but impossible foods impressed me.
Beyond Meat and Impossible are the 2 at the forefront in the US. There is room for both. I don’t think this is a winner take all. But I am finding a couple of things that is causing me to pause
It appears the marketcap at IPO price will be $1.15B not $381M as I originally thought based on S1. This gives a P/S of 13 which I think is too high for this industry.