Shares of plant-based meat substitutes have been traded on stock exchange since last May, and similarly to most stocks traded on capital markets experienced significant decline in the middle of March.
Yet, shares of Los Angeles-based product Beyond Meat have grown by more than 100 percent since that. Why? Meat processing plants had to close down due to coronavirus pandemic, and, according to Alpho analysis, as shutdown caused meat shortages, fast-food chains began to substitute meat with plant-based options.
Based on data provided by DPA agency, American consumers began to complain about lack of meat burgers in Wendy's chain offer. According to Nielsen, meat price has increased in 8 percent since April 25 due to the negative situation within American food chains.
Beyond Meat is profiting from the situation during pandemic, and it has been reflected in the company's quarterly financial report. In the first three months of 2020, the company reported profit of $1.8 million. Sales rose year-over-year by 141 percent to $97.1 million.
Beyond Meat’s shares have been growing since initial decline right after COVID-19 pandemic outbreak. Starting in the middle of March, when shares dropped to $54 per share, they added up roughly 114 percent, while its opening value was around $116 per share in the beginning of May.
Since the beginning of 2020, value of Beyond Meat stock rose 53 percent.
Due to the measures implemented by governments and supply chains disruptions, the price growth does not concern meat only, but food in general. In China, for example, food prices grew 18.3 percent in year-over-year comparison in March, and price of pork increased by 116 percent.
Milosh Pham
Chief Analyst
Alpho
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