The day has finally come.
This morning Beyond Meat, maker of the popular plant-based burgers, went public. The El Segundo, Calif.-based company raised $241 in its IPO by pricing 9.6 million shares at $25 per share. This is an increase from its original plan to release 8.75 million shares offered at $19-$21. It will have an initial market cap of roughly $1.5 billion.
This move on Beyond’s part is huge news for the alternative protein landscape. As the first plant-based meat company to go public, the success (or failure) of Beyond’s shares will be an indicator for the strength of the alternative meat industry. If it does well, others like Impossible Foods — whose patties will soon be at Burger Kings nationwide — are likely to follow.
It’s too early to make a call on how Beyond will fare, but there’s reason to be optimistic. Beyond’s shares were priced at the higher range, indicating a high level of interest from investors and consumers. There’s also the fact that the alternative meat space been experiencing a meteoric rise over the past few years. According to Nielson, U.S. sales of plant-based meat rose 24 percent in 2018 alone.
The company will trade on the Nasdaq under symbol BYND. So far it has raised $142 million from backers like Cleveland Avenue and Obvious Venturers, as well as celebrities like Bill Gates and Leonardo DiCaprio. It used to count Tyson among its investors, but the poultry giant pulled out its investment once it started developing its own line of plant-based meats.
Beyond’s plant-based meat is available in 30,000 grocery stores and restaurants including fast-food chains like Carl’s Jr., Del Taco, and Canada’s A&W. In addition to Canada, Beyond is also on grocery shelves/menus in Italy, the Netherlands, Belgium, the U.K. and Israel.
Though Beyond has yet to turn a profit, the company posted a 20 percent gross margin in 2018, up from a negative margin in 2017. Its gross margin for Q1 of 2019 is just over 25 percent, indicating an upward trajectory. Beyond’s sales also grew by 170 percent in 2018.
Now that the company is public, we’ll see how it reacts to the short-term demands of investors.
If you want to keep up to date as Beyond navigates its IPO, make sure to subscribe to Future Food: our weekly newsletter analyzing the alternative protein space.
UPDATED:
Beyond Meat has dubbed tomorrow, May 3rd ‘Beyond Day.’ Basically, it just means they’re giving you free/discounted Beyond burgers, tacos, etc. We’ve listed all the deals below:
**All offers limit one per person, while supplies last:
- Carl’s Jr. – Free Beyond Famous Star with Cheese
- Where: All Carls Jr. locations (Nationwide)
- When: Friday May 3, 6am-Close
- How: Redeem with the purchase of a medium or large drink
- At the register say “Happy Birthday Beyond”
- Del Taco – Free Beyond Taco or Beyond Avocado Taco
- Where: Participating Del Taco locations (Nationwide)
- When: All day Friday, May 3 (12:01am-11:59pm)
- How: Free Beyond Taco or Beyond Avocado Taco in the Del Taco app with any purchase.
- Bareburger – Free Beyond Burger
- Where: All Bareburger locations (Nationwide)
- When: Friday, May 3, 3-6pm
- How: Redeem with the purchase of a side and a drink.
- Download the Bareburger app and show the server the app on your phone
- Veggie Grill – Free VG Beyond Burger
- Where: All Veggie Grill locations (West Coast & Chicago)
- When: Friday, May 3, 2-5pm
- How: Redeem with the purchase of a fountain drink
- Must be a VG Rewards App member
- Epic Burger – Free Beyond Burger
- Where: All Epic Burger locations (Chicago)
- When: Friday, May 3, 4-7pm
- How: Redeem with the purchase of a side and a drink.
- Mention the offer at the register
- Any additional add ons will be extra
- Retail Offer – $3 Off Any Beyond Meat Product
- Where: All participating U.S. retailers where Beyond Meat is sold (while supplies last)
- When: Friday, May 3
- How: Download a digital coupon at www.BeyondMeat.com/BeyondDay
- $3 off coupon good on any Beyond Meat product
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