Alternative Meat Industry

In 2009, when experienced entrepreneur Ethan Brown decided to build a better veggie burger, he set his sights on an exceptional goal – create a plant-based McDonald’s equally beloved by the American appetite. To do this, he knew he needed to transform the idea of plant-based meat alternatives from the sleepy few veggie burger options in the grocer’s freezer case into a fundamentally different product.

Since 2016, Beyond Meat products have been widely available in retail outlets, from major grocery chains like Walmart and Kroger to upscale food stores like Whole Foods. The company has also successfully penetrated the restaurant market, offering its products in national fast-food chains like Subways, Denny's, and Dunkin'. Beyond Meat (BYND) went public in May 2019 at an initial price of $25 per share. By July of 2019, the stock was trading at more than $200 a share, giving the young company a market capitalization of over $12 billion.

In late 2019, with both demand and competition for meat alternatives exploding, investors and observers wondered about Beyond Meat's prospects and its market valuation. Would the increase of plant-based options drive down Beyond Meat's margins? Would consumers be able to differentiate Beyond's products from other plant-based options? How would cultured meat affect the competitive landscape? Would further investments in research and development help give Beyond Meat an edge? Would Americans continue to embrace meat alternatives, or would the initial fanfare subside below investor expectations?