Beyond Meat, Inc. [NASDAQ: BYND] continues to be a top performer among the food based companies on the stock market. BYND deals with plant-based “meat” products recently went through an Initial Public Offering (IPO) after which its shares started trading on Nasdaq at a debut price of approximately $46.00 on May 2, 2019. StockWatch247 initially covered the BYND IPO on the morning of May 3, 2019 when the stock had previously closed around $65.75 and since then the shares have hit a new 52 week high yesterday at $97.50.
The stock has performed impressively over the last few weeks forming higher highs and higher lows as seen on the daily chart below.
Meanwhile, [NASDAQ: BYND] went ballistic on Wednesday closing at $97.50 following a 13.37% gain on the day with a relative change of +11.50. BYND stock had closed the trading on Tuesday at $86.00 according to the data by Yahoo Finance. It opened the session on Wednesday at $90.05 and danced within the intra-day range of $87.32 – $97.65. The stock has a 52-week range between the lows of $45.00 and highs of $97.65. About 8,371,994 shares exchanged hands yesterday having an average volume of 9,611,131. It is trading above the its 1-year target estimated at $81.00.
Part of the force behind the recent spike has been linked to a comment made by McDonald’s [NYSE: MCD] chief executive officer Steve Easterbrook while speaking to CNBC. In the published video clip, Easterbrook was asked if his company would be interested in bringing on board various vegan “meat” alternatives into the mainstream market. The reporter Carl Quintanilla specifically cited Beyond Meat [NASDAQ: BYND] being a potential source for such products. Easterbrook said in response:
“Absolutely no idea at this stage,” he added “Clearly, anyone who has something they want to get scale to will often look to McDonald’s to be that partner — to help them scale.”
While his comment did not directly state that Beyond Meat would be McDonald’s first choice, he remained open to the idea of introducing plant-based meat alternatives to his firm’s menu.
This lightweight comment seems to have set the ball rolling in the right direction for BYND. Presently, McDonald has selected meatless test especially in the European markets introduced to compete with the region’s Swiss food giant Nestle. Easternbrook went ahead to remind the viewers what he said in April during the release of McDonald’s Q1 report:
“Is there an additional complexity? And if there is, is that complexity worth it? So we’ll stay close to consumer demand; I certainly know our teams there are paying close attention and discussing this among each other, and with some of the options that are out there. So maybe more to come, but nothing much to say about [it] in the moment.”
It is true McDonald is looking forward to adding meat alternatives to its menu. However, the idea is still quite far from any official announcement. Therefore, it appears that the investors of BYND overreacted pushing the stock in a bullish move to form new yearly highs. However, the other fact remains that the chart has been on a bullish trend which always tells the story of a stock better than any “News”. This is why I always say to “focus on the charts” and not the “stocks”.
Another positive indicator for BYND is a note released by JPMorgan analyst Ken Goldman who said that the mock meat market is likely to rise to $100 billion in the coming 15 years. It has been mentioned that because BYND has become an early participant, it will take up at least 5% of the market; approximately $5 billion in revenue.
In closing, remember to always follow the chart as it will tell the best story. If the BYND chart can break-out of its 52 week high today of $97.5 then the bulls will likely continue to push the uptrend in the coming day and or days.