What happened
Shares of Beyond Meat (BYND -1.46%) surged sharply higher Thursday, jumping as much as 6.9%. As of 12:18 p.m. ET, the stock was still up 4.4%.
The catalyst that sent the maker of plant-based meat substitutes higher was a pair of updates regarding two increasingly important partnerships.
So what
McDonald's (MCD 0.47%) said on Thursday that it will expand its ongoing test of the McPlant burger. The vegetarian-friendly patty was created in partnership with, and supplied by, Beyond Meat. The burger is "made from plant-based ingredients like peas, rice and potatoes," and served exclusively at McDonald's, according to an updated press release.
Image source: Getty Images.
The quick-service restaurant began testing the burger in eight locations back in October, and is now expanding to the San Francisco Bay area and Dallas-Fort Worth. "Starting Feb. 14, [the McPlant burger] will be available at approximately 600 participating locations in these two markets for a limited time, while supplies last," according to the press release.
This news comes less than a day after reports emerged late Wednesday that PepsiCo (PEP -2.97%) was planning to release a vegan-friendly jerky snack as part of its collaboration with Beyond Meat, according to a report by Bloomberg.
In January 2021, the companies announced a joint venture -- The PLANeT Partnership -- "to develop, produce and market innovative snack and beverage products made from plant-based protein." In September, PepsiCo CEO Ramon Laguarta revealed the company was hoping to begin rolling out new products born of the collaboration by early 2022. The plant-based jerky could be its first fruits.
Now what
Beyond Meat shares have been a roller-coaster ride for investors since its highly publicized initial public offering in early 2019. After initially soaring as much as 250%, the stock then fell below its debut price. Shares continue to be extremely volatile, as Beyond Meat works to build out its production capabilities and expand its partner base beyond its flagship Beyond Meat patties.
As consumers become more thoughtful about their food choices and healthy eating, Beyond Meat is positioning its products as the go-to for plant-based meat substitutes. Change comes slowly, but if Beyond Meat continues to execute, it could be a long-term winner for patient shareholders.
