For investors looking to sink their teeth into food stocks in 2021, Beyond Meat (NASDAQ: BYND) and Coca-Cola (NYSE: KO) are top brands that are both leaders in their fields. But they offer different menus, different models, and different outlooks for investors.
Both companies struggled during the pandemic, but we’re talking about the future — which one of these consumer discretionary stocks is the better buy today?
Beyond Meat was a hot IPO in 2019, and a decidedly non-tech one, unless you count food technology. It produces alternative meat patties and other meatless products, and revenue has skyrocketed as the products have increased in popularity. As recently as the first quarter of 2020, sales grew by triple digits. But demand fell as shutdowns dragged on.. In the third quarter, which ended Sept. 26, sales grew 2.7%. That’s still an increase, but it does change the perspective on the company’s growth prospects. The main headwind was foodservice, which declined 11% in the U.S. and 65% internationally,, but even retail channel sales grew only 39%.