The first few weeks as a public company have been rather turbulent for Beyond Meat. After seeing its share price jump 163 percent on its first day of public trading, the maker of pea-based alternative meat products suffered heavy fluctuations of its share price, including for example a 21-percent increase on one day followed by a 25-percent drop the day after.
Despite the ups and downs, Beyond Meat is by far the best-performing U.S. IPO of the year so far. The company’s shares closed at $222.13 on Monday, up 789 percent from its IPO price of $25. The market for meat alternatives has been getting a lot of attention recently, as major players such as Nestlé and Tyson Foods have entered the space and Barclays has valued its potential at $140 billion a year
in a research note published at the end of May.
For companies such as Beyond Meat, collaborating with existing burger chains, is arguably the most important growth strategy at the moment. In 2018, the Restaurant and Foodservice channel accounted for 42 percent of Beyond Meat’s sales, up from 22 percent the year before. By the second quarter of 2019, that share had grown to 49 percent, helping the company to almost quadruple its sales compared to last year's June quarter.