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Why Beyond Meat Stock Surged 22% Higher in September

By Jon Quast – Oct 2, 2020 at 3:49PM

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The company announced everything growth investors like to hear during the month.

What happened

Shares of Beyond Meat (BYND 2.54%) went up 22.2% in September, according to data provided by S&P Global Market Intelligence. The good news just kept coming throughout the month, sending the stock all the way to new 52-week highs. 

So what

If you're a young company like Beyond Meat, increasing distribution is a primary goal. Some consumers are still unfamiliar with plant-based proteins, so increasing distribution helps build awareness and boost adoption. Furthermore, it helps your business achieve efficiencies of scale. Beyond Meat announced new distribution deals in September, including tripling its distribution in Walmart stores.

A row of stacked coins are sequentially taller and each are topped with a young plant.

Image source: Getty Images.

More than distribution, Beyond Meat announced new products and progress in new international markets. On Sept. 14 the company announced a new product called Beyond Meatballs, and readied its distribution for grocery stores around the country. And on Sept. 8, it delved deeper into international expansion by announcing the development of a new production facility near Shanghai.

Now what

Beyond Meat is a growth stock grabbing any opportunity it can to support long-term adoption. If you're a shareholder, this is exactly what you want to see. If demand for plant-based meat is there and growing, then it only makes sense to increase your business as much and as quickly as possible.

There of course is a cost associated with aggressive expansion -- the company reported a net loss of $8 million in the first half of 2020. But it has a net-cash position of $172 million, providing plenty of fuel to keep growing.

Jon Quast owns shares of Beyond Meat, Inc. The Motley Fool owns shares of and recommends Beyond Meat, Inc. The Motley Fool has a disclosure policy.

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Beyond Meat, Inc. Stock Quote
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