Another Restaurant Says No to Adding Beyond Meat to Menu

Posted on

Shares of Beyond Meat were down about 5% this past Friday morning after Shake Shack’s CEO revealed that the company has “no intention” of adding Beyond Meat to its menu right now.

Shake Shack CEO Randy Garutti told CNBC that the burger chain was going to watch “a little bit.” He commented, “Shake Shack was built on doing classic things better than other people did them, so let’s watch a little bit.”

“We have no intention of doing it today,” Garutti told CNBC’s “Squawk Box ” on Friday. “We want to watch and see how this plays out.”

Garutti said he was “fascinated” by the early sales numbers released by restaurants that have already tried it, however he wants to see if those numbers continue.

Companies that have already jumped on the bandwagon of serving meatless meat are Burger King, Carl’s Jr., and A&W Restaurants.

inMarket inSights recently revealed that Burger King’s traffic at its test locations for its plant-based Impossible Whopper outperformed the chain’s national foot traffic average by 18.5% in April.

Although Garutti said the company isn’t ready to take the plunge yet, it is on friendly terms with Beyond Meat, who has visited Shake Shack’s test kitchen.

Beyond Meat has been on fire since debuting in May. The company had an IPO of $25 per share in early May. Since then, the stock has soared 555%.

Sanford C. Bernstein downgraded Beyond Meat from an “outperform” rating to a “market perform” rating and set a $123.00 price target on the stock earlier this month.

JPMorgan Chase & Co. lifted their price target on the company from $97.00 to $120.00 and gave the company an “overweight” rating this month as well.

Disclaimer: We have no position in Beyond Meat Inc. (NASDAQ: BYND) and have not been compensated for this article.