Beyond Meat (NASDAQ:BYND), maker of plant-based meats, is watching its stock go higher after announcing cheaper burgers just in time for the summer grilling season. The Cookout Classic Value Pack contains 10 meatless patties and will be available at major U.S. retailers, including Walmart and Target.
Beyond Meat discussed developing value packs in its first-quarter earnings call, in an ongoing effort to narrow the price gap between its products and real meat.
Americans and hamburgers
By some estimates, Americans consume 50 billion hamburgers every year -- that's three per person per week. And when summertime rolls around, we love to fire up the grill and make our own. Beyond Meat wants its products on your grill, and by lowering the price, it thinks you'll give it a try.
Generally, Beyond Burgers are sold in two-packs for up to $5.99, more than $2.50 for each patty. The Cookout Classic Value Pack retails for $15.99 -- $1.60 per patty. That's a 36% price reduction and narrows the price gap with traditional beef. It might be enough to get backyard grillmasters to try Beyond Meat for the first time, which is important for this growth stock.
CEO Ethan Brown recently noted that Beyond Meat's buyer rate (the amount purchased per consumer) is going up. Offering value packs isn't just about reducing price, but also serving its customers who are buying more of its meat-less products over time.