Beyond Meat (BYND) is rocketing on a major catalyst.
Just this morning, McDonald’s (MCD) announced plans to test a plant-based burger using Beyond Meat patties in Canada. That’s why shares of BYND were up $22 this morning.
A 12-week test is expected to begin on September 30, 2019 in 28 restaurants in Ontario.
“This test allows us to learn more about real-world implications of serving the P.L.T., including customer demand and impact on restaurant operations,” Ann Wahlgren, McDonald’s vice president of global menu strategy, said, as quoted by CNBC.
This is just the beginning for a larger story.
Research and Markets’ analysts expect the meatless-market to increase from $4.6 billion to $6.4 billion by 2023. Beyond Meat thinks that number could rocket to $35 billion in the U.S.
Better, with sizable popularity of meat alternatives, Tyson Foods just confirmed it will introduce a meatless product in coming months. Burger King just is selling its Impossible Whopper. According to Business Insider, Cowen analysts say the Impossible is “set to contribute to 6% same-store sales growth in the third quarter at American Burger Kings.”
All as the public just begins to change their tastes, and begin to eat less meat.
Plus, many companies are just beginning to notice there’s a shortage of veggie burgers to satisfy consumers at the moment. Big food companies are “setting up investment arms and emerging company areas, but it’s too little, too late, and they’re still trying to catch up with the curve,” said Lou Biscotti, national food practice leader for Marcum LLP, as quoted by Bloomberg.
This may be one of the top stories of 2019 that investors should not ignore.