Hatch Weekly: Psst. Fake meat is the future. Pass it on.

The proof is in the pudding patty

Pass the plant-based burgers, please. Last Thursday, Beyond Meat (BYND) released its quarterly earnings revealing a 215% increase in net sales. The company expects to double its revenue in 2019 over last year.

One month on from the IPO

It’s only been 30 days, but the meat replacement company's showing that there's plenty of demand for more plant-based burgers, and investors who are keen to punt on them. Shares are surging following its first earnings report as a publicly traded company. FOMO? Fair enough – the stock has climbed more than 450% from its $25 IPO price, giving the company a market cap of around $8 billion*.

Where’s the (fake) beef?

Chains like Burger King, Carl's Jr., TGI Friday's, and White Castle are jumping on the plant-based burger trend, and are helping take this niche product mainstream. But Beyond Meat has some competition, namely Impossible Foods. Some major food incumbents are also angling for a piece of the fast-growing plant-based meat market. Nestle is planning to launch a plant-based "Awesome Burger"this fall, and Tyson Foods (TSN), America’s largest processor and marketer of meat, will start selling fake meat products this summer. Say hello to some fierce competition in an industry that’s on everyone’s watch list.
*As at market close June 7, 2019

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Recession obsession

Okay, people are saying that there’s a recession coming. And you can blame bonds for the talk. Let’s face it, bonds are boring. But right now, all the action is in the bond market.

Wait? What’s happening?

When investors get nervous, they buy government bonds. Why? Governments pay back their debts, so those bonds are seen as a safe bet. Investors that are seeking safety in bonds have sent bond prices soaring, and when bond prices rise, yields (the interest rates investors get on bond investments) fall. When yields fall, it’s a sign that a storm is on the horizon. Long-term yields on government bonds around the world are hitting some of their lowest levels in recent years on fears that the global economy is slowing quicker than expected. Cue panic (but don’t, really).

What the experts sez: calm the farm

The bond market’s loud warning shouldn’t be ignored, but we are getting mixed signals. The most recent earnings season wasbetter than expected, and last Thursday we got the good news that the US economy grew at 3.1%. Diversifying your investments is probably the most obvious measure that you can take when it comes to shielding your investments from severe bear markets. Other ways to ride out market rockiness include investment strategies based on a buy and hold mentality and dollar-cost averaging. You got this.

Uber vicious

It’s been a month since Uber’s (UBER) underwhelming initial public offering, and CEO Dara Khosrowshahi is taking things into his own hands, which means shaking up his exec team. Hasta la vista to Uber’s COO and CMO.

Out with the old

Khosrowshahi hired his chief operating officer as a vital part of the process to repair Uber’s brand after the mess that the company’s O.G. CEO, Trevor K made. Pushing out Barney Harford (and Rebecca Messina) is a potential setback in Uber’s effort to tidy up its financial performance and reputation. Call it a hatchet job or part of the plan to simplify the business – either way, it sounds like Harford had it comin’. Apparently, many Uber employees complained he frequently made rude comments around race and gender during company meetings. Not okay, Bazza. Kiss that sweet bonus goodbye.

Power play

Khosrowshahi intends to combine the company’s marketing operations with the communications and policy team, giving him more control of how the company does its business. Analysts and speculators are saying that this is one of the last things investors wanted to see with the stock already being immense pressure. Last week Uber released its first-ever earnings report disclosing losses of $1 billion in the first quarter of 2019 on revenue of $3.1 billion. Eek! But shares closed up 5% last Wednesday at $45 per share, so let’s see if this executive team shake-up makes things better or worse.

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