Beyond Meat (BYND) - Get Report shares surged higher Tuesday after the plant-based food group said it reached an agreement with Walmart (WMT) - Get Report to expand its distribution t through the world's largest retailer.
Walmart will triple the availability of the Beyond Meat burger, which was first launched in 2015, to around 2,400 U.S. locations starting from next week, Beyond Meat said. The expanded agreement, which was first referenced in Beyond Meat's earnings call with investors on August 4, follows plans to sell the group's frozen breakfast sausage patties at around 5,000 stores around the U.S, including Walmart, Kroger (KR) - Get Report and privately-owned Publix.
Earlier this month, analysts at Goldman Sachs cautioned the increasing competition from alternative food rivals, and a hesitancy from some restaurants to add its products to menus amid the coronavirus pandemic, have raised questions about the stock's recent lofty valuation.
“Walmart has been a terrific partner and we’re excited to strengthen that partnership in depth and breadth as we look to offer more Beyond Meat products at more Walmart locations, furthering our commitment to increasing accessibility of plant-based meat,” said Beyond Meat's growth officer, Chuck Muth.
Beyond Meat shares were marked 10.3% higher in early trading Tuesday to change hands at $166.82 each, a move that would extend the stock's six-month gain to around 153%.
Last month, Beyond Meat reported a second quarter loss of $10.2 million as the cost of re-routing its burgers and sausages from restaurants to retail outlets during the peak of the coronavirus pandemic ate into its bottom line.
Overall sales, however, rose 70% from last year to $113.3 million thanks in part to a tripling of U.S. revenues, which it $90 million, and a near doubling of its overseas sales, which came in just under $10 million.