2019 IPOs: Beyond Meat eclipses Uber and Lyft share prices
The alternative meat company's stock is soaring after its successful IPO launch.
The most successful initial public offering (IPO) of the year hasn’t been Uber or Lyft: it’s Beyond Meat. The alternative meat producer’s stock has climbed 300% since its initial public offering (IPO) debut on May 2.
Beyond Meat’s IPO shows popularity of meatless trend
Beyond Meat was founded by Ethan Brown in 2009. The corporation's food products are served in thousands of US restaurants. Brown noted that the plant-based food company has a goal of helping the environment while creating a successful business. Brown maintains that consuming less meat leaves less of a carbon footprint.
'[Beyond Meat's success] shows that you can pursue a social end through business in a way that that can create huge value,' said Brown.
Beyond Meat's success is in catering to consumers who just want to slightly reduce their meat consumption. Some food products are even sold in the frozen meat section of grocery stores to appeal to customers who eat meat.
Can Beyond Meat’s stock success continue?
While Beyond Meat’s IPO is successful, the company still hasn’t turned a profit. In 2018, Beyond Meat had a net loss of $29.89 million. In its IPO prospectus, the company warned that it may not be profitable after increasing expenses.
‘Our expansion efforts may prove more expensive than we anticipate, and we may not succeed in increasing our revenues and margins sufficiently to offset the anticipated higher expenses,’ said Beyond Meat in its IPO prospectus.
Beyond Meat is also facing competition from Impossible Burger and other food companies with vegan food options. Brown said he is confident that Beyond Meat’s share price can withstand any competition.
‘It takes a lot of expertise and a singular vision to do what we’ve done. We’ve also built a very strong brand. That will keep us in a leadership position in this space, regardless of who comes into the market,’ said Brown.
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