Better Buy: Beyond Meat vs. Starbucks

Stock prices for both Beyond Meat (NASDAQ:BYND) and Starbucks (NASDAQ:SBUX) suffered as the coronavirus crisis weighed on the restaurant industry. The maker of plant-based protein products saw declines in its sales to foodservice groups. And the specialty coffee retailer posted a drop in revenue as some of its stores temporarily closed. But recovery has begun at both companies, and their share prices are on the rise.

That raises the question: If you could invest in only one of these two consumer stocks, which should be your pick right now?

Beyond Meat is in its early days of its life cycle as a public company. Starbucks is farther along in its business path, but that doesn’t mean growth is over. It’s revamping key elements of its business to adapt to today’s customer and expanding in one of its biggest markets.

Let’s take a closer look at both companies and see if there are other clues to answering the question.

Image source: Beyond Meat.

Beyond Meat, the stock market star

Beyond Meat has been a stock market star since its initial public offering in May 2019, and rightly so. Shares in the company gained 250% in their first two months of trading. Today, they’re up 183% since the market debut. The reason for all the excitement? The company has reported triple-digit revenue gains in every quarter except the most recent one. The adverse affects of the coronavirus on the broader economy meant Beyond Meat revenue “only” rose by double digits in Q2 of fiscal 2020.

The company has also forged alliances with big restaurant names, including Starbucks. Its Beyond Beef is available on Starbucks’ menu in China, for example. And speaking of China, Beyond Meat is expanding there. The company recently announced the development of a production site near Shanghai for the

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