Beyond Meat Inc. (NASDAQ: BYND) shares have backed off from their incredible run over the summer. This comes as more businesses are coming around to the idea of faux meat and more competitors are emerging on the scene.
Beginning on Friday, Impossible Foods will debut its plant-based burger in U.S. grocery stores. The Impossible Burger will make its retail debut at 27 Gelson’s Markets locations in Southern California before expanding its retail presence in the fourth quarter and in early 2020. The product will arrive in additional unnamed stores, including on the East Coast, later this month.
The product has already multiplied across restaurant menus, including Burger King locations nationwide, after starting at New York City’s Momofuku Nishi in July 2016, but until now it hasn’t been available as a raw product to consumers.
Demand has risen as consumers look for foods they see as healthier and more environmentally friendly than beef. According to Jefferies analyst Simon Powell, imitation meat could reach 9% of the estimated $2.7 trillion global meat market by 2040 from less than 1% now.
Not all is rosy though, as Beyond Meat is facing some difficulty in Canada. Tim Hortons cut Beyond Meat’s burgers and sandwiches from its menu, except in Ontario and British Columbia restaurants. This comes months after a nationwide rollout at the Canadian breakfast chain.
Beyond Meat said the menu items were introduced as a limited-time offering and could return in the future.
Shares of Beyond Meat traded up about 1% Thursday to $155.40, in a 52-week range of $45.00 to $239.71. The consensus price target is $161.00.