All summer I've tried to stay mum on Beyond Meat's (NASDAQ: BYND) rise to riches and the subsequent debate. It soared from an initial public offering price of $25 all the way to nearly $240 per share. But since then, the food company, which specializes in plant-based meat alternatives, is down to $154 as of this writing, good for a gain of "only" 516% from its May debut.
I'm ready to weigh in -- but not because I want to talk about how overpriced the stock is (that's been done enough); or whether plant-derived protein is really meat or not (that debate may never die). Rather, it's the fact that, in a wild year of hot IPOs, many investors seem to have forgotten how difficult it is to disrupt -- and stay atop -- an industry, especially one that's already a commodity. Food is a commodity, and while food innovation is alive and well and meeting shifting consumer demands, innovation alone isn't a reason to invest.
Driven by a desire to be more health conscious and thoughtful about environmental issues, many consumers have been increasing their consumption of plant-based foods. Restaurant industry research group Dining Alliance said that sales of meatless alternatives to restaurants have rocketed 268% higher in 2019.