Shares of Beyond Meat (NASDAQ:BYND) closed out trading on Monday 3% higher than where they started after having been up as much as 5.5% during the day.
While there was no specific news to account for the rise other than the market as a whole being buoyant on positive developments with COVID-19 vaccines, the move by the maker of plant-based meat alternatives was notable nonetheless as it seemingly defied an analyst's sour view of a relationship with McDonald's (NYSE:MCD).
A UBS analyst suggested, after discussions with one of the fast food giant's supply chain managers, that Beyond Meat would not be the only supplier for the restaurant's new McPlant plant-based burger. It's rare for any company to be a sole source for a product, and even less common to have one of its brands identified with it.
That was simply speculation by the analyst, though, and a counter argument could be made based on comments made by Beyond Meat's president and CEO during the company's recent earnings conference call.
The market shrugged off the potential for a more limited role by the plant-based food manufacturer and chose instead to focus on the more favorable outlook for restaurants and food companies.
The proposed vaccines for COVID-19 are reportedly highly effective with few side effects, which could lead to consumers choosing to dine out more often. If a rising tide lifts all boats, Beyond Meat should do better in such a scenario.