After falling as much as 45% over the past couple of months, BYND stock is attempting to recover a bit on the news that Mcdonald’s Corp (NYSE:MCD) will trial a plant-based burger made by Beyond Meat Inc (NASDAQ:BYND).
Short Term Bullish?
The ultimate aim of Beyond Meat was always to eventually strike a deal with a big-ticket fast food joint, and in that regard, nothing could be bigger than McDonald’s.
In a new development, it has emerged that the fast-food behemoth is going to start tests with the plant-based meat burger manufactured by Beyond Meat. It may only have gone into tests, but it is already making the market excited about the possibility of an actual deal with McDonald’s.
The product in which the Beyond Meat burger is going to be used is the PLT (plant, lettuce, tomato) burger and it will be available to consumers in the McDonald’s stores of Southwestern Ontario. In total there are 28 stores in the area. However, in addition to that, the burger will also be made available in Toronto, which is the biggest market in the province. The burgers will go on sale from September 29, and the test will be continued for 12 weeks.
Once the announcement was made, investors piled onto BYND stock, and it has skyrocketed by as much as 15% to $159.
Severe Selling Pressure Recently
While this is, without a doubt, a massive development for Beyond Meat, it needs to be noted that BYND stock has been under selling pressure since late July. There was a lot of optimism around Beyond Meat when it first had its IPO, and the stock had gone on a remarkable rally that made it one of the biggest gainers on Wall Street for some time. However, doubts eventually set in as analysts soon realized that there are no clear competitive advantages in place.
There are other companies in the space, and there are no barriers to entry into the plant-based meat market. Eventually, BYND stock dived by as much as 45% from its highs since August. However, the lastest news is definitely a boost.
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