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Why Did Beyond Meat’s Stock Price Shoot Up Yesterday?

Beyond Meat finally sees a significant reversal of its fortunes following an appalling year, but is the future really as bright as it seems?

It’s been a tough year for Beyond Meat (NASDAQ: BYND). Concerns around widening net losses, coupled with ever-weakening outlooks for the year, have sent the stock plummeting for the year. Down over 44% year-to-date (YTD), the company is looking for any sliver of positive news it can find.

Yesterday marked a rare win for the firm, as its stock price rose an impressive 9.29%. This sudden boost comes off the back of a quicker than anticipated rollout of the company’s partnership with industry titan McDonald’s.

What exactly happened?

Beyond Meat is currently in the first year of a three-year strategic partnership with McDonald’s that will see it act as the sole supplier for its first plant-based offering. The ‘McPlant’ was initially set to be tested in just eight restaurants across the United States before being rolled out nationwide in late 2022 all things going well.

However, confidential industry reports have revealed that this rollout is set to occur much sooner, with the first quarter of 2022 now being targeted. This would give Beyond Meat a huge boost at the beginning of the new year, particularly after a year of weak grocery demand and dwindling orders.

Added to this, the company also announced the addition of two exciting new hires. Doug Ramsey and Bernie Adcock, both arriving from meat industry giant Tyson Foods, will come in as Chief Operating Officer and Chief Supply Chain Officer respectively. While this news likely had much less impact on the company’s stock price, the move will be viewed favorably by investors as Beyond Meat looks to expand its operations in 2022.

So should I invest in Beyond Meat?

The company certainly appears to be making a raft of positive moves following a terrible year for the alternative meat manufacturer. The success of the partnership with McDonald’s could end up being a make or break for many investors. Success could see the company get a legitimate foothold in the fast-food industry and lead to significant expansion across the globe. Failure, on the other hand, could leave the company locked out from the industry leaders and left to try and claw back some of its diminishing consumer demand.

2022 is certainly shaping up to be a landmark year for the company, and investors will be hoping yesterday’s reversal of recent fortunes will continue long into the future.

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