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Why Beyond Meat Stock Surged Today

By Joe Tenebruso – Jun 8, 2020 at 2:14PM

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The plant-based food maker struck a deal to expand its presence in a major market.

What happened

Shares of Beyond Meat (BYND -5.55%) soared on Monday, following news of a major new distribution deal in China. As of 2:55 p.m. EDT, Beyond Meat's stock was up more than 20%. 

So what

Beyond Meat entered into a strategic partnership with Sinodis, China's leading imported food distributor. Sinodis will distribute Beyond Meat products via its network of more than 4,500 wholesalers, restaurants, and hotels. 

Two people are shaking hands.

Beyond Meat's stock rose sharply on Monday after it agreed to a deal with a powerful Chinese food distributor. Image source: Getty Images.

"Our goal is to promote the availability of plant protein products on a global scale, to provide consumers with more choices, and also allow them to enjoy the nutritional value and environmental benefits of edible plant protein," Beyond Meat's chief growth officer Chuck Muth said in a press release. "China has a large population and a strong interest in plant protein products. 

Now what

The deal helps to further Beyond Meat's expansion ambitions in the world's most populous nation. The meat-alternatives leader struck a deal with Starbucks (SBUX -0.85%) in April, which brought its Beyond Beef products to more than 3,300 of the coffee king's restaurants in China. 

And just days ago, Beyond Meat reached an agreement that would bring its plant-based Beyond Burgers to some of Yum China's (YUMC -1.32%) KFC, Taco Bell, and Pizza Hut restaurants for a limited time. "We see great potential for the plant-based meat market in China," Yum China CEO Joey Wat said at the time of the announcement. 

It's clear that Beyond Meat intends to aggressively expand its operations in China. And judging by today's gains, investors are becoming more optimistic about its growth prospects in this potentially massive market.

Joe Tenebruso has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Starbucks. The Motley Fool recommends Beyond Meat, Inc. The Motley Fool has a disclosure policy.

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Stocks Mentioned

Beyond Meat Stock Quote
Beyond Meat
BYND
$15.14 (-5.55%) $0.89
Starbucks Corporation Stock Quote
Starbucks Corporation
SBUX
$89.35 (-0.85%) $0.77
Yum China Holdings, Inc. Stock Quote
Yum China Holdings, Inc.
YUMC
$49.90 (-1.32%) $0.67

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