Beyond Meat Gains as Tim Hortons Adds Sandwiches at 4,000 Shops
††† Shares spike as much as 13% as demand continues to climb
††† But supply could be tight, with Freebirds reporting shortage
By Yueqi Yang, Bloomberg†
June 12, 2019
Beyond Meat Inc. got a reprieve from two downgrades in as many days after Tim Hortons said itís now offering faux-meat breakfast sandwiches at almost 4,000 locations across Canada.
The plant-based meat products maker gained as much as 13% after the coffee-and-doughnuts chain said it added three breakfast sandwiches to the menu made with Beyond Meat sausages after testing them at select stores last month.
The stock reversed earlier losses driven by Sanford C. Bernstein & Co.ís decision Wednesday to cut its rating on Beyond Meat to market perform from outperform, saying shares of the company have gotten too expensive after a more than 400% rally since its May 1 initial public offering. On Tuesday, JPMorgan Chase & Co.ís similar move spurred a 25% decline, Beyond Meatís worst day since the debut.
Last week, the company reported quarterly earnings for the first time since the IPO, fueling optimism among investors when it said sales would exceed $210 million this year, topping analystsí estimates. It also said earnings before interest, taxes, depreciation and amortization would break even, compared with projections it would have a loss. The results reinforce that consumer demand for alternative meat products is on the rise.
The question now is whether supply can rise fast enough to meet demand...
more, including links, chart