Beyond Meat shares climbed 5% Tuesday after the plant-based meat producer announced it is expanding its product offerings at Walmart.
Beginning this week, the Los Angeles-based fake meat company will be introducing its Beyond Sausage Hot Italian to more than 400 Walmart stores across the US, the company revealed in a statement Tuesday. Beyond Meat, founded in 2009, will also be expanding its frozen Cookout Classic value-pack to approximately 500 stores.
Beyond Meat’s partnership with the retail giant started in 2015. The increased distribution, the second in the past year, is part of Beyond Meat’s effort to meet consumers’ demands for plant-based products as more people become more health and environmentally conscious. The pandemic has also contributed to the rise in demand as more people cook at home.
Beyond shares climbed 2.37% to $138.50 as of 2:48 PM ET.
Shares of Beyond Meat jumped as high as 13% to $162 a share Friday after news of partnerships with two of the largest fast-food chains overshadowed weak fourth-quarter sales.
The stock fell sharply after the Thursday closing bell when the faux-meat maker announced sales in the fourth-quarter were $101.9 million, compared to the average estimate of $103.6 million. But news that Beyond Meat is partnering with both McDonald’s Corp. and Yum! Brands cause shares to retrace their losses.
Beyond Meat and McDonald’s will enter into a three year agreement that will place the faux-meat maker as the preferred supplier for the patty in the McPlant burger. McDonald’s and Beyond Meat will also explore co-developing other plant-based menu items like plant-based chicken, pork, and egg substitutes, according to a news release.
Beyond Meat also will co-create plant-based menu items for Yum! Brand’s subsidiaries KFC, Pizza Hut, and Taco bell over the next several years. The partnership continues the relationship between Beyond Meat and the fast food giant.
Beyond Meat’s foodservice sales were down nearly 43% year on year as the COVID-19 pandemic decreased restaurant foot traffic. CEO Evan Brown said this impacted “near-term profitability.”
Shares pared back gains after the opening bell and were trading around $151 as of 9:40 a.m. EST.
Analysts from Bank of America said that Beyond Meat management indicated that the fast-food partnerships will not have a material impact on 2021 results given the timing of the announcement.
“Overall we see sales improving in 2021 as foodservice sequentially improves while retail faces tough comps. We expect margins will see pressure driven by increased investments and lower price points in retail,” BofA said. The firm has an “underperform” rating for the stock and price target of $81.
Beyond Meat rose as much as 16%, to $144.78 a share, after Taco Bell announced it’s partnering with the faux-meat producer to explore plant based protein menu items on Thursday.
Beyond Meat’s stock surge comes after a stellar 2020 which recorded a 65.3% yearly gain. The plant-based meat company has also gained over 100% since its IPO in May 2019.
“Taco Bell chose to team up with Beyond Meat as a category leader with a proven track record of attracting younger customers with its irresistibly delicious plant-based offerings,” Taco Bell said in a press release.
Beyond Meat rose as much as 16%, to $144.78 a share, after Taco Bell announced it’s partnering with the faux-meat producer to explore plant based protein menu options on Thursday.
Taco Bell said that it’s partnering with Beyond Meat to create an “innovative new plant-based protein that will be tested in the next year.”
Taco Bell’s parent Yum! Brands gained as much as 2.3% on Thursday.
“Taco Bell chose to team up with Beyond Meat as a category leader with a proven track record of attracting younger customers with its irresistibly delicious plant-based offerings,” the Mexican food chain said in a press release.
Beyond Meat’s stock surge comes after a stellar 2020 for the faux-meat company. It soared 65.3% last year, and has also gained over 100% since its IPO in May 2019.
Taco Bell is just one of the many fast-food chains Beyond Meat has teamed up with.
The faux-meat producer announced last week that its Beyond Breakfast Sausage Sandwich is available in Starbucks chains in the UK. It also introduced Beyond Meat sandwiches in Starbucks chains in the UAE and Kuwait.