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Nestle has an operating profit margin of 17.5%. That's pretty good. Maybe it's possible for Beyond/Impossible. Also, if capital costs of building a plant are l
by petra 5y ago
Nestle has an operating profit margin of 17.5%. That's pretty good. Maybe it's possible for Beyond/Impossible.
Also, if capital costs of building a plant are low relative to yearly revenue, say 10%, even at profit margins of 5%, over 10 years you got 5x of returns, and that's without counting other ways of raising capital.
A lot depends on scale, and meat has scale.
- adam_arthur 5y agoYeah, I haven't broken down the numbers mathematically. I'm sure it will be a profitable business, and they have a great head start. Just a question of valuation and ROI on a longer timescale. BYND stock seems wildly overvalued if you consider the very long run, for example. You can't have a tech like multiple on a food/grocery product and expect a good long term return.