Beyond Meat CEO Ethan Brown (C) celebrates with guests after ringing the opening bell at Nasdaq MarketSite, May 2, 2019 in New York City.
Drew Angerer | Getty Images
Shares of meat alternative company Beyond Meat rose more than 6% on Tuesday, after the Wall Street Journal reported that plant-based burger companies are struggling to meet surging demand.
Due to limited production capacity, the two leading purveyors of meat-alternatives, Beyond Meat and Impossible Foods, have been unable to meet the high frequency of orders from restaurants adding meatless products to their menus.
Beyond Meat’s stock is now trading up 2%, up nearly 300% since its initial public offering in May.
Beyond Meat and Impossible Foods are served in almost 20,000 restaurants across the country, according to the report. TGI Fridays, Del Taco Restaurants and Red Robin have joined the list, adding pea-based or soy-based burgers to their meat-heavy menus.
Burger King and White Castle have also added the meat-alternatives to their menus to attract more customers, the Journal said.
The rise in popularity in planet-based burgers has caught more than just the eyes of restaurant chains.
Barclays predicted the alternative meat industry could be worth $ 140 billion over the next decade and food giant Nestle is planning to launch its own plant-based burger in the U.S. through its brand called Sweet Earth.
Beyond Meat surged 163% on its first day of trading at the Nasdaq on May 2. The day prior, the company priced its shares at $ 25 a share, but opened at $ 46 a share. The stock has nearly quadrupled its price since the IPO.
Beyond Meat will report first-quarter earnings after the bell Thursday in the company’s first earnings report since becoming a public company.
— Read the full Wall Street Journal story here.
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