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Beyond Meat (BYND) stock spikes on KFC collaboration

By Kevin Donovan

14:37, 5 January 2022

KFC Beyond Fried Chicken buckets
Beyond Fried Chicken will be available throughout the US next Monday - Photo: Beyond Meat

Beyond Meat stock surged over 9% overnight, after the plant-based protein manufacturer announced the launch of Beyond Fried Chicken in collaboration with fast-food chain KFC.

Beyond Meat stock (BYND) traded as high as $67.50, up 9.54%, on Tuesday evening, shortly after Beyond Meat announced the product launch over Twitter.

Beyond Meat stock had closed the Tuesday session at $61.62 per share. 

“Breaking News! Were excited to officially announce Beyond Fried Chicken will be making its national debut on January 10,” Beyond Meat announced over Twitter late Tuesday. “Yes, you heard us correctly. We told you 2022 was going to be tasty”.

Yum! Brands (YUM), KFC’s parent company, meanwhile, remained unchanged in overnight trading, after closing Tuesday at $137.31 per share. 

ETH/USD

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Yum! offerings

Beyond Fried Chicken will be available throughout the US next Monday, as part of a combination meal offering or in six- or 12-piece orders, starting at $6.99 (£$5.15) for the six-piece option.

Beyond Meat has been developing meat-alternative options with Yum! over the past year, including offerings for other Yum! subsidiaries such as Pizza Hut and Taco Bell. Last May, for example, Beyond Meat announced a trial launch of Beyond Italian Sausage as a topping on Pizza Hut pizzas in select Canadian regions.

Yum! stock seems to have weathered the Covid-19 pandemic well, currently trading 29.7% higher year over year. Beyond Meat stock, meanwhile, has slumped, down 51.1% year over year.

El Segundo, California-based Beyond Meat has been plagued by supply-chain disruptions throughout 2021, leading to a reduced revenue forecast last year. Additionally, the company said a weather event damaged a primary warehousing facility, causing inventory to spoil.

Read more: Beyond Meat down 11.7% after lowering 3Q 2021 revenue guidance

Markets in this article

YUM
Yum
135.16 USD
-0.16 -0.120%
YUM
Yum
135.16 USD
-0.16 -0.120%

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The difference between trading assets and CFDs
The main difference between CFD trading and trading assets, such as commodities and stocks, is that you don’t own the underlying asset when you trade on a CFD.
You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional trading you enter a contract to exchange the legal ownership of the individual shares or the commodities for money, and you own this until you sell it again.
CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade in order to open a position. But with traditional trading, you buy the assets for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks, for example.
CFDs attract overnight costs to hold the trades (unless you use 1-1 leverage), which makes them more suited to short-term trading opportunities. Stocks and commodities are more normally bought and held for longer. You might also pay a broker commission or fees when buying and selling assets direct and you’d need somewhere to store them safely.
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