Beyond Meat rockets higher after Tim Hortons says it'll offer plant-based meat in breakfast sandwiches across Canada
- Beyond Meat's stock gained nearly 12% after Tim Hortons announced it'll offer plant-based meat in breakfast sandwiches across Canada.
- Shares plunged 25% on Tuesday after JPMorgan downgraded the name.
- An increasing number of fast-food restaurants are adding vegan and vegetarian options to their menus.
- Watch Beyond Meat trade live.
Breakfast sandwiches have boosted Beyond Meat's stock after Wall Street analysts cooled on the company.
Shares of Beyond Meat traded up as much as 16% Wednesday after the company announced that three of its breakfast sandwiches are available on menus at Tim Hortons across Canada.
The news came after analysts earlier this week rushed to cut ratings on the stock. On Tuesday, shares tanked 25% after JPMorgan's Ken Goldman cut his rating to "neutral," and on Wednesday, Sanford C. Bernstein's Alexia Howard the last bullish voice on Wall Street cut her rating "market perform." Both analysts cited Beyond Meat's stretched valuation.
Shares have had a volatile few days of trading following a meteoric 600% climb since the May 1 initial-public-offering pricing and the company's better-than-expected earnings release. Traders have had to contend with Nestle announcing its own plant-based burgers and grocery stores saying they weren't sure Beyond Meat burgers belonged in the meat aisle.
Tim Hortons has been testing Beyond Meat breakfast sandwiches in Canada since May. In April, its sister brand Burger King announced that its Impossible Whopper would be rolled out nationwide by the end of 2019 after a successful limited launch at locations in and around St. Louis, Missouri. The Impossible Whopper was the result of a partnership with Impossible Foods, a competitor to Beyond Meat.
Beyond Meat's stock could see a major boost if it secures a partnership with a chain such as McDonald's, analysts at Jefferies wrote in a note. An increasing amount of fast-food chains are adding vegan items to menus to meet the growing demand for plant-based meat alternatives. Del Taco, Taco Bell, and Chipotle have all began to offer vegan and vegetarian options recently. Chick-fil-A and McDonald's are also exploring adding vegan options to their menus.