Beyond Meat Inc. BYND, +17.70% stock jumped as much as 26.1% in Tuesday trading before closing with a 17.7% gain after the plant-based protein company announced a deal to make snacks and beverages with PepsiCo. Inc. PEP, +1.16%
The two companies have entered into a joint venture, The PLANeT Partnership, LLC, that will use Beyond Meat’s plant-based protein development capabilities and Pepsi’s market and commercial experience to create new products.
Financial details of the partnership were not disclosed.
Pepsi brands include the namesake cola, Lays potato chips and Quaker oats.
Pepsi reported $67.16 billion in sales in 2019, and the FactSet consensus is for $63.64 billion in 2020. Pepsi is scheduled to report fourth-quarter earnings on Feb. 11.
“Plant-based proteins represent an exciting growth opportunity for us, a new frontier in our efforts to build a more sustainable food system and be a positive force for people and the planet, while meeting consumer demand for an expanded portfolio of more nutritious products,” said Ram Krishnan, PepsiCo’s global chief commercial officer, in a statement.
Analysts have grown more bearish on Beyond Meat stock over concerns about the company’s growth prospects in 2021 as the restaurant industry reels from the impact of the coronavirus pandemic.
See: Beyond Meat downgraded as restaurants turn their focus to chicken sandwiches
Beyond Meat shares have rallied 13.6% over the last three months, but have gained 56.4% over the past year.
Pepsi stock is down 0.8% for the last 12 months.
The benchmark S&P 500 index SPX, -0.15% is up 16.8% for the past year.
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