Beyond Meat’s Stock Is Up 700% From Its IPO Price

by | Jul 25, 2019 | Markets

The company’s stock surpassed $200 per share this week. 

The bar continues to rise for Beyond Meat. The company’s shares have been steadily increasing since its May IPO. And now, investors are starting to look ahead to the company’s second-quarter earnings report, which is due on July 29. 

The company’s first-quarter earnings report beat investor expectations and sent the stock soaring more than 20%. This week, the company’s shares exceeded $200, which means it is more than 700% higher than its IPO price. 

Positive tailwinds for Beyond Meat

So far, analysts have been mostly neutral when it comes to Beyond Meat. Most are optimistic when it comes to the company but none have given the company anything higher than a hold rating. But most agree that the company has strong growth potential due to a couple of positive tailwinds. 

Strong demand for plant-based meat products

Beyond Meat is in a fast-growing industry. There’s strong consumer demand for plant-based meat products and that isn’t expected to go away anytime soon. 

Many Americans are concerned about eating healthier and also worry about the potential impact of the food they eat on the environment. Plant-based meat products aren’t a perfect solution but they are an improvement. According to one report, 18% of Americans are trying to consume less meat. 

And the market for plant-based meat products could reach $140 billion over the next 10 years. Other companies like Impossible Foods offer similar products but Beyond Meat was the first to go public, which gives it a slight market advantage. 

Beyond Meat continues to partner with other companies

One of the things Beyond Meat has done well is to form high-profile partnerships with other companies. This has pushed its products into grocery stores and restaurants across the country and has increased its brand recognition. 

This has not only helped boost the company’s profile, but it has also benefited many of the companies it partnered with. Dunkin’ Brands saw its stock go up slightly after announcing it would use Beyond Meat’s products in its breakfast sandwiches. 

And Blue Apron, the struggling meal delivery service, saw its stock rise more than 50% after announcing its partnership with the company.

Final thoughts

Beyond Meat is still not profitable but investors don’t seem to mind too much. The company is investing heavily in its growth by focusing on infrastructure, new products, and distribution channels. As the company’s brand awareness grows, Beyond Meat could see even bigger returns in the future.