Why Beyond Meat Stock Jumped 11% on Wednesday

What happened

Beyond Meat (BYND -0.17%) shareholders beat a rising market on Wednesday. Shares jumped 11% by 11:40 p.m. ET, compared to a 0.8% boost in the S&P 500. That rally erased just a small portion of recent losses that investors have seen in the plant-based protein specialist's stock. Shares remain down over 60% so far in 2022.

Wednesday's price jump appeared to be powered by a slight rebound in optimism on Wall Street following several tough weeks in the market.

So what

Beyond Meat did make an announcement this week revealing expanded distribution for its value pack of plant-based burger patties. The product is aimed at satisfying demand for meat alternatives during the approaching grilling and cookout season.

It will soon be available at many major supermarket chains, including Kroger, Walmart, Target, and Publix.

But another factor driving the stock on Wednesday was a bounce higher in the broader market, and especially in stocks that have been hit hard during the current swoon. The Nasdaq index, which has declined sharply since late 2021, was up 1.4% by noon, or roughly double the increase in the broader S&P 500.

Now what

There have been some good reasons for Beyond Meat's stock price decline in 2022, including a sharp negative swing in demand. Consumers appear to be less willing to try out its meat substitute products today than they were in earlier phases of the pandemic. The company posted a jarring 92% net loss in the most recent quarter.

It's likely that Beyond Meat's operating results will improve as time passes and as it adds to its portfolio of products. This week's cookout announcement is a reminder that the company has a packed pipeline of food products it plans to introduce in 2022.

If you believe these releases will change its sales trajectory, then Beyond Meat might look enticing given the stock price slump in recent weeks. But many investors will look to other growth stocks while they wait for more-concrete signs that Beyond Meat is expanding sales again and moving toward sustainable profitability.