What happened

Shares of Beyond Meat (NASDAQ:BYND), a fast-growing food company with a portfolio of plant-based meat substitutes, jumped nearly 12% during early Friday trading after reports that a competitor was coming up short.

So what

Friday's jump in stock price is merely the finishing touch on a wild week that saw Beyond Meat's stock drop significantly after a JPMorgan downgrade due to its expensive valuation, only to rebound the following trading day.

BYND Chart

BYND data by YCharts.

Friday, it was reported that Impossible Foods, the company that produces the Impossible Burger and is a major competitor in plant-based meat substitutes, is reportedly having troubles supplying the Impossible Burger to restaurant chains White Castle and Red Robin. The shortage comes at a time when Impossible Foods is working with Burger King to release the Impossible Whopper nationwide after a successful limited offering.

Man holding veggie burger

Image source: Getty Images.

Now what

Beyond Meat's jump today should be taken with a grain of salt. While a competitor slipping up could be viewed as a positive development, it also means its competitor has ample demand for its products. The most important thing for Beyond Meat is to make sure it has moved past such shortages, which plagued its own business in 2017 and 2018 (the company has said its days of struggling to meet demand are over). However, this likely won't be the last struggle with supply and demand from plant-based meat companies, since the market could grow by 1,000% over the next decade to reach $140 billion, per Barclays analysts.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis -- even one of our own -- helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.