Compliments to the chef... Beyond Meat enjoyed the biggest 1st day jump of any stock since 2000: +163%. Shares of the plant-based protein pioneer actually surged so fast they had to be halted by Nasdaq. Despite just $90M in annual revenues, Beyond is now worth twice as much as all of Shake Shack ($3.8B vs. $1.8B).
It's all about reducetarians... Not vegans. A Nielsen survey says just 6% of Americans are vegetarian, and half that are veganites. But 39% now crave to eat more plant-based foods and less animal-based ones. Beyond's pea-based protein strategy is targeting those meat "reducetarians."
- Grocery stores (58% of revenues): Beyond's sold in 15K so far — And 93% of Kroger customers who bought the Beyond Burger also bought animal meat.
- Restaurants (42%): Beyond Burger is served in 12K restaurants that also offer plenty of beef — Carl’s Jr., TGI Fridays, and BurgerFi.
A big IPO isn't necessarily a successful IPO... Beyond Meat issued 9.5M raw, new shares to brand new investors this week to raise money to grow. Naturally, it aimed to sell at the highest price. Thursday's insane jump though shows it under-priced the shares and could have raised more money:
- $25/share: That's the price at which Beyond Meat issued shares = $238M raised.
- $68.70/share: That's the price after Day #1 of trading = $653M potentially (but not) raised.
- $415M: that's how much money Beyond Meat "left on the table" by IPO-ing at a share price that seemed to be too low.