Protein-focused products gain momentum

What happened: Beyond Meat (NASDAQ: BYND) is shifting its focus from plant-based meat alternatives to protein, as seen in its recent deal to distribute protein drinks. Jefferies upgraded The Simply Good Foods Company (NASDAQ:SMPL), citing its exposure to the growing demand for protein-focused products, particularly through its Quest brand. New research highlights creatine's cognitive benefits, expanding the protein narrative beyond muscle performance.

Market impact: This narrative drives demand for protein-focused products, benefiting companies like Beyond Meat and Simply Good Foods. It also opens opportunities for other protein supplement providers. The shift could lead to valuation repricing, as seen in SMPL's upgrade, and may attract investors seeking exposure to this megatrend.

What to watch next: Beyond Meat's earnings on May 3rd will provide insights into its protein drink sales and overall strategy. Simply Good Foods' earnings on June 1st will offer updates on Quest brand performance. Additionally, monitor consumer behavior data to gauge the trend's sustainability and potential expansion into new product categories.