Should you buy Beyond Meat stock after deals with McDonald’s and Yum?

Shares of Beyond Meat (NASDAQ: BYND) closed 1.2% higher on Friday despite soaring 8% in pre-market on deals with McDonald’s and Yum! Brands.

Fundamental analysis: Major partnerships announced

Beyond Meat reported fourth-quarter earnings that saw the company report a loss of $0.34 per share, which was worse than the $0.13 expected from analysts. Revenue was reported at $101.9 million to miss the expected $103.2 million. 

Still, shares of the company soared in pre-open after it announced partnerships with McDonald’s and YUM! Brands, a company that operates the brands KFC, Pizza Hut, and Taco Bell.

A 3-year partnership with MCD will result in BYND becoming a preferred supplier for the patty in the McPlant.

On the other hand, BYND products will be used to create “craveable and innovative plant-based protein menu items” for products at KFC, Pizza Hut and Taco Bell.

Technical analysis: Testing support

Beyond Meat stock price closed 1.2% higher on Friday but still more than 9% lower on a weekly basis. In February, the BYND share price declined 18.31%.

The price action closed below the 100-DMA on Friday to likely invite more selling pressure in the near-term. The stock is now testing the crucial channel support at $145.00, with $115.00 offering new buyers an opportunity to buy BYND shares.

Summary

Beyond Meat announced weaker-than-expected results but the stock still closed in the green thanks to announced partnerships with McDonald’s and Yum! Brands.