Fake Meat Mania Trumps the Trade War
Surrendering to fake meat mania is one surefire tactic you can use to avoid trade war jitters.
For a fast food restaurant with “chicken” in its original name, KFC joining forces with Beyond Meat Inc. (NASDAQ:BYND) is a strange move.
KFC is calling its new fake chicken concoction a “Kentucky Fried Miracle.”
KFC announced that the chain will be testing the new unholy experiment (in boneless wing and nugget form!) in its Smyrna, Georgia location on Aug. 27, per Yahoo Finance. Pea protein is the main meat doppelganger for Beyond’s chicken offerings, among a couple dozen other ingredients.
Is this the future we wanted? Investors seem to think so. Beyond shares have stabilized following their recent pullback, gaining a respectable 5% on the KFC partnership news.
Serious question: How many more of these partnerships is the company going to announce in the weeks ahead to attract new investors into the fake meat flock?
In other dystopian food news, Starbucks Corp. (NASDAQ:SBUX) has found another way to offer us pumpkin flavoring.
Pumpkin spice lattes are back at Starbucks today, and the company is celebrating by releasing a brand-new version of its popular seasonal beverage. That’s right — the pumpkin cream cold brew is Starbuck’s first new pumpkin related drink since the venerable pumpkin spice latte in 2003, CNBC reports.
Starbuck’s new pumpkin-adjacent concoction will launch this week along with the rest of the fall menu. It’s not even September yet but I’m sure the lines to try it will stretch out the door of your favorite Starbucks location.
Shareholders are also excited about the new pumpkin offerings. Starbucks stock has navigated the recent market turmoil to perfection. The stock is perched near all-time highs and has posted year-to-date gains topping 50%.
Switching gears to recent IPO news, analysts now say Lyft Inc. (NASDAQ:LYFT) might actually turn a profit in 2021.
Lyft and Uber Technologies Inc. (NYSE:UBER) — the two major ride-hailing IPOs — aren’t exactly profitable just yet. But analysts from Guggenheim are optimistic about Lyft’s prospects. The firm now expects Lyft to turn a profit in 2021 instead of 2023, CNBC reports, claiming that price increases shouldn’t impact demand for the ride-hailing service.
Frankly, I’m intrigued by the positive coverage. After all, most of the so-called “experts” put their eggs in Uber’s basket when the two stocks first stormed the public markets back in the spring.
According to analyst ratings, Wall Street clearly favored Uber. Analysts offered up a staggering 17 buy ratings, five neutral ratings, and zero sell ratings, initially placing a price target of more than $53 on the stock.
At first, Uber was outperforming Lyft at just about everything, even electric bikes and scooters.
Lyft’s scooter fleet was even recalled due to rider injuries. They slowly returned to the market— but Uber turned around and upgraded its units with swappable batteries and launched a new scooter model in addition to new bike accessories while Lyft’s offerings remained sidelined.
As the summer trading months wore on, Uber climbed toward its highs while Lyft’s stock remained stuck well below its March IPO price. When we last checked up on Lyft’s chart in June, the stock was quietly attempting to break out of its dreadful post-IPO downtrend. We were looking for a close above $63 that could possibly ignite a new rally for this struggling stock.
Spoiler: it failed to hold its gains:
Is this the end of the road for Lyft?
Maybe not. In fact, Lyft’s chart looks miles better than Uber’s right now. Uber stock has completely fallen apart in August, skidding more than 25% over the past four weeks to new post-IPO lows.
Meanwhile, Lyft jumped 4% following Monday’s upgrade after finding support near its May lows. With trade-war distractions approaching all-time highs, I doubt most traders have Lyft on their radar right now…