Beyond Meat is going mainstream and that is doing wonders for its investors. The California-based purveyor of plant-based protein products has seen its stock rise nearly 65 percent since the beginning of the year, closing Tuesday at $117.05 after topping $130 in an intraday high. The rise in stock value lines up with a series of high-profile deals announced with fast-food chains McDonald’s and Dunkin’, which will use Beyond products in their meals.
Monday’s market bump coincided with Dunkin’s release of the Beyond D-O-Double G sandwich, repped by rapper Snoop Dogg -- a decadent twist on the Beyond Sausage Sandwich featuring vegan sausage, egg, cheese, and a glazed donut for a bun.
That came hot on the tail of another announcement last week that McDonald’s is expanding its test run of the “P.L.T.,” or plant-based patty, lettuce, and tomato sandwich, which uses a Beyond patty, to 52 locations in southwestern Ontario, Canada for three months.
Also last week, Beyond’s main competitor, Impossible Foods, bailed out of talks with McDonald’s due to concerns over its ability to meet demand.
The recent spike is only the latest ripple in a turbulent run for Beyond Meat shares. Since the company priced its IPO at $25 a share back in May, the stock has surged, then plunged, more than once. Most dramatically, it skyrocketed to $234.9 a share in July before ticking back down to around $80 per share in the last few months. Many analysts still advise holding on the stock.
Brian Holland, a senior research analyst for the wealth management firm D.A. Davidson, told Cheddar that the stock price will likely even out and that in the long-run ,full market penetration for Beyond is going to take time.
“I don’t think there’s much new,” he said. “We generally believe that Beyond Meat was the most likely partner for McDonald’s in some form or fashion.”
He added that McDonald’s has taken a measured approach by rolling out its Beyond products on a temporary basis, and that larger companies such as Nestlé and Tyson still present a threat.
These high-profile product crossovers, however, may only account for some of Beyond’s rising fortunes on the stock exchange.
Speaking at a retail conference in New York City on Tuesday, Beyond’s Executive Chairman Seth Goldman noted that the company hopes to expand into China over the next year and eventually bring its supply chain to every continent.
“We haven't announced anything, but we are expected to do something this year," Goldman said, according to a report from China’s Xinhua news agency.
China, which is currently experiencing a surge in pork prices due to an outbreak of swine fever, has seen its own share of companies enter the growing market for vegan and vegetarian alternatives to popular meat products. Food producers such as Zhenmeat and Whole Perfect Food now offer their own substitutes for meatballs and dumplings that cater to local tastes.
While competition is growing, the market for these products is sizing up as well. Total retail sales of plant-based foods have grown 31 percent since April 2017, according to data from the Plant Based Foods Association and The Good Food Institute, and 11 percent in the past year.
But grocery shoppers are clearly only one piece of the plant-based pie for Beyond. The company has gone all-in on working with fast-food chains to reach consumers who still equate meatless with stodgy tofu or seitan options rather than picture-perfect recreations of ground beef.
National brands aren’t the only game in town either. Beyond also partners with regional chains, like Carl’s Jr. and Hardee’s, which are common in the U.S. south, Canadian chains such as Tim Hortons and A&W Canada, and a number of one-off local restaurants throughout the country.
While there’s no precise data on how much 0f the plant-based market is comprised of fast-food restaurants, promoters of the industry see them as an important signifier of customer demand.
“What it shows is that consumers are looking for, and in some cases demanding, plant-based food options across the spectrum, whether that’s at their favorite fast-food restaurant or in a sports stadium or on a college campus or in a grocery store,” said Michael Robbins, a spokesperson for the Plant Based Foods Association.
Several Silicon Valley insiders are being accused of contorting a 1990s-era tax break to avoid taxes on millions of dollars of investment profits. The tax break is known as the qualified small business stock exemption, and it allows early investors in certain companies to avoid half of the taxes on up to $10 million in capital gains. A piece recently published in the New York Times says venture capital firms like Andreessen Horowitz replicated the tax exemption by giving shares of companies to friends and family, who would otherwise face a 23.8% capital gains bill. The CEO of Roblox is also accused of replicating the tax break for his family members at least 12 times. Although the loophole known as 'stacking' is considered to be legal, the Times piece implies that the exemption has been manipulated for the ultra-wealthy to become more wealthy. Greycroft co-founder and Chairman Emeritus Alan Patricof joins Cheddar News' Closing Bell to discuss.
There is a new player in the mobile app stock trading space.
Zingeroo recently announced a funding round of $8.5 million. The company says it aims to bring 'friendly competition' to stock trading, by literally breaking trading down into daily and weekly competitions between friends. Zingeroo also says it hopes its new approach can make trading more accessible, educational, and social than ever before. Zingeroo co-founder and CEO Zoe Barry joins Cheddar News' Closing Bell for more.
Stocks closed higher on the first trading day of 2022, with both the Dow and the S&P 500 hitting record closes. Apple and Tesla created momentum, with the tech giant hitting a $3 trillion market cap, and the EV maker reporting over 300,000 deliveries in the fourth quarter of 2021. Investors are taking an optimistic approach to start the year even as COVID-19 continues to linger and omicron cases soar. Rebecca Walser, President at Walser Wealth Management, joins Cheddar News' Closing Bell to discuss today's market movement, her broad predictions for the year, and more.
As cell carriers AT&T and Verizon planned to roll out nationwide 5G service this week, the FAA and U.S. DOT are asking the companies to pause their plans so more research can be done on the impact 5G has on aircraft technology. The companies are refusing, citing French regulations that limit wireless signals around airports while allowing research to continue. This week's launch wasn't the first time concerns have delayed 5G — last year, Airbus and Boeing express concerns, pushing the deadline into November, December, and then into this year. So what happens now — and what happens next? Will 5G roll out this year as expected? Jon Swartz, Senior Reporter at MarketWatch, joins Cheddar News' Closing Bell to discuss the state of the planned 5G rollout, why the FAA and U.S. Department of Transportation are asking carriers to stall the launch, and more.
Tyrone Ross, CEO of Onramp Invest, joins Cheddar News' Closing Bell, where he explains why he believes the current crypto slump is expected to persist and says that investors should be focusing more on Bitcoin's hashrate when it comes to metrics.
As the COVID-19 omicron variant continues to spread, thousands of flights have been canceled, restaurants and bars have been forced to re-adapt to outdoor and take-out dining, and consumers are canceling their travel and other plans. This all comes as the CDC recently updated its quarantine guidelines for people who test positive, slashing the isolation period from 10 days to five. That change was pushed by the airline industry as it continues to struggle with labor shortages. How will the variant continue to impact businesses large and small? Laura Reathaford, Partner at Lathrop GPM, and Tom Sacco, CEO, President, and Chief Happiness Officer of Iowa-based Happy Joe's Pizza and Ice Cream, join Cheddar News' Closing Bell to discuss employment law issues related to worker safety during COVID-19 outbreaks, and how small businesses are dealing with the latest wave, respectively.
Luke Larsen, senior editor at Digital Trends, joins Cheddar News to discuss the largest tech convention in the world, CES, kicking off in Las Vegas this week.
