Tyson just announced that they might be forced to close more meat processing factories.
Beyond Meat has continued its expansion during this pandemic.
As the world slowly changes their dietary habits to include more plant-based options, companies like Beyond Meat are seizing the moment while Tyson struggles.
As Tyson (NYSE:TSN) faces more plant closures due to the coronavirus, their stock continues to plummet. Meanwhile, one of its plant-based competitors, Beyond Meat (NASDAQ:BYND), is looking more and more resilient through this pandemic.
Could companies like Beyond Meat come out of this pandemic with a surprising chunk of the meat market in tow? Let’s check it out.
The Tyson Situation Is Not Looking Great
In late April, Tyson rang the panic alarm by taking out full-page ads in The New York Times and Washington Post, declaring ‘the food supply chain is breaking.’ At that point, they had closed two plants due to coronavirus fears.
The company warned that more plant closures are likely. Tyson issued a statement today, saying:
We have and expect to continue to face slowdowns and temporary idling of production facilities from team member shortages or choices we make to ensure operational safety.
Tyson’s stock has been in free fall since last week, dropping 12% since April 29.