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Cheaper Burgers Lift Beyond Meat Stock

By Jon Quast – Updated Jun 17, 2020 at 12:13PM

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With a 36% drop in price, some might take a bite of Beyond Burger when grilling out this summer.

Beyond Meat (BYND -7.33%), 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.

A woman holds a hamburger from Beyond Meat.

Image source: Beyond 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.

Jon Quast owns shares of Beyond Meat, Inc. The Motley Fool recommends Beyond Meat, Inc. The Motley Fool has a disclosure policy.

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