Shares of Beyond Meat (NASDAQ:BYND) jumped 9% on Wednesday, after a popular restaurant chain said it was adding the company’s plant-based food to its menu.
Canada-based coffee chain Tim Hortons, a subsidiary of Restaurant Brands International(NYSE:QSR), is testing Beyond Meat’s plant-based sausages in select markets. The sausage patties will be sold as part of three new breakfast sandwiches.
“Canadians are looking to incorporate plant‑based options into their diets, and we’re thrilled to partner with Beyond Meat,” Tim Hortons President Alex Macedo said in a press release.
The restaurant chain said that if the test performs well, it would roll out these new Beyond Meat breakfast sandwiches to all of its Canadian restaurants by the end of the summer.
“With roughly 4,000 locations in Canada, we’re looking forward to being able to offer Canadians from coast‑to‑coast a truly accessible meat alternative that they can feel good about,” Macedo said.
Beyond Meat’s stock has been on a tear since the company’s initial public offering on May 2. Shares are now up nearly 250% from their $25 IPO price.
However, plenty of investors think the stock may have come too far, too fast. More than 40% of Beyond Meat’s outstanding shares are sold short — meaning investors are betting the stock’s price will fall — according to analytics company S3 Partners.
All told, Beyond Meat’s stock is an interesting play on the rising popularity of meat alternatives. But with its shares currently trading for more than 50 times sales, investors may want to wait for a pullback in Beyond Meat’s stock price before buying in to this sizzling recent IPO.
Beyond Meat Inc. shares were trading at $93.25 per share on Thursday afternoon, up $6.33 (+7.28%). Year-to-date, BYND has gained 41.83%, versus a 15.91% rise in the benchmark S&P 500 index during the same period.
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