Shares of Beyond Meat, which supplied the patties for McDonald’s recent P.L.T. pilot, initially plunged on the news that McDonald’s was crafting its own plant-based line of meats. Gains were erased and shares fell as much as 10 percent—the biggest intraday decline in four months. Trading in the stock was even briefly paused due to the volatility.
Beyond Meat later announced that it helped create the plant based patty the fast-food giant will roll out next year and its shares promptly rebounded. “Our relationship with McDonald’s is good,” Beyond Meat CEO Ethan Brown said during his company’s earnings call. He would go on to quote Mark Twain about reports of his death being greatly exaggerated.
McDonald’s has been viewed as the potential crown jewel for up-and-coming plant-based meat makers, like Beyond Meat and its top competitor, Impossible Foods, which supplies Burger King for its ‘Impossible Whopper’.
The world’s biggest restaurant chain said its new line of products, called McPlant, would eventually include faux chicken and meat for breakfast sandwiches. International President Ian Borden said on an investor call Monday that it will be “crafted exclusively for McDonald’s by McDonald’s.” Some markets will test the burger next year.
Experts said that without a plant-based meat option, McDonald’s was leaving money on the table and giving meat alternative fans a reason to dine elsewhere.
Sales of fresh plant-based meat alternatives at U.S. food retailers this year through September were up 118 percent over the same period in 2019, according to data from market research firm Nielsen. Plant-based meat doesn’t only appeal to vegans anymore as more and more Americans strive to cut down on their meat intake. This translates into big dollars throughout the fast food industry.
McDonald’s is one of 42 of the top 100 fast-food chains in the U.S. that currently does not offer a plant-based meat alternative, but apparently that is about to change. Competitors have seen success with their own versions, such as Burger King’s Impossible Whopper, launched last year. The fast-food giant has not yet announced which suppliers it will collaborate with on the McPlant line. However, the company did confirm that it will NOT manufacture its own plant-based products!
Our analysis leads us to believe that Beyond Meat will be that supplier and the new “not-so-secret sauce/source” of its new plant-based offerings.
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This report is a publication of Demand Wealth. Information presented is believed to be factual and up-to-date, but we do not guarantee its accuracy and it should not be regarded as a complete analysis of the subjects discussed. All expressions of opinion reflect the judgment of the author as of the date of publication and are subject to change.