Beyond Meat Inc. (NASDAQ: BYND) shares hit a multiyear high on Tuesday after the company announced that it would expand its long-standing relationship with Walmart Inc. (NYSE: WMT). This expansion is in response to the growing demand for more plant-based meat alternatives.
In terms of the numbers, Beyond Meat’s burger patties will be available at more than 2,400 Walmart locations, basically tripling its distribution to the retailer.
Note that this move also comes as part of Beyond Meat’s effort to increase worldwide accessibility to simple, plant-based meat products made without genetically modified organisms (GMOs).
The firm originally launched its frozen products at Walmart in 2015, and the offerings have only expanded since then.
This is nothing new for Beyond Meat, as the company has grown exponentially for some time now. Its products are now available through more than 112,000 retail and foodservice outlets in 85 countries around the world.
According to data from Nielsen, demand for fully cooked plant-based meat alternatives increased 25% in the four weeks ending August 22. Health concerns in regards to the coronavirus have helped to spur trends like plant-based meat and this expansion is a natural conclusion to the demand.
Excluding Tuesday’s move, Beyond Meat stock had vastly outperformed the broad markets with a gain of about 100% year to date. However, in the past 52 weeks, the share price was more or less flat.
Beyond Meat stock traded up about 10% on Tuesday, at $165.70 in a 52-week range of $48.18 to $170.44. The consensus price target is $123.74.
Walmart stock traded at $137.00, in a 52-week range of $102.00 to $151.33. The consensus price target is $146.09.