Beyond Meat (NASDAQ:BYND) stock is soaring higher on Friday following concerns that the U.S. is approaching a meat shortage.
While Beyond Meat may not initially seem connected to a meat shortage, it is. The company could benefit from consumers that are still looking to enjoy burgers, but can’t get their hands on the typical meat variety. Instead, they might turn toward Beyond Meat’s plant-based offerings.
The idea that more consumers will buy Beyond Meat goods during a meat shortage is behind the increase to BYND stock. It could also result in a future boost to the stock should the predictions come true and the company sees more business.
The novel coronavirus is responsible for the meat shortage concerns. Some meat producers are shutting down factories as employees get infected by the coronavirus. That, in turn, means retailers may have a tougher time acquiring meat to seel to customers, reports Investor’s Business Daily.
Beyond Meat has been seeing jumps in its stock all throughout the week. Part of the reason for that was a new deal with Starbucks (NASDAQ:SBUX) that will have its products showing up in the coffee chain’s stores.
It may seem like Beyond Meat is on a strong path upwards, but that could change. InvestorPlace’s own Matt McCall doesn’t see the stock as worth the effort. He argues that most consumers won’t make the change from real to fake meat. Also, the plant-based food isn’t as healthy as some believe it to be, which could hurt it down the line when consumers begin to realize that fact.
BYND stock was up 8.46% as of Friday afternoon.
As of this writing, William White did not hold a position in any of the aforementioned securities.