Latest News by Industry
• McDonald’s expanding McPlant trial to ‘understand customer demand’ in US
• McPlant burger uses a patty made from peas, rice, and potatoes to mimic the taste and texture of beef
McDonald’s Corp (NYSE: MCD) on Thursday said it is expanding the test of the plant-based McPlant burger from the next month, which the fast-food giant created with vegan meat maker Beyond Meat Inc (NASDAQ: BYND).
Starting from February 14, McDonald’s will begin selling the burgers at around 600 locations in the San Francisco Bay and Dallas-Fort Worth areas for as long as supplies last.
The Chicago-based chain said the test over a broader area will help them “understand customer demand” for the potential menu item.
The fast-food giant began its tests in November with just eight restaurants.
While the shares of McDonald’s were up over 1.1% in the early trading in New York, Beyond Meat, which makes the McPlant patty from peas, rice, and potatoes, to mimic the taste and texture of beef, jumped more than 6.7%.
MCD’s cautious move
McDonald’s, which has signed a partnership with Beyond Meat in February 2021, is cautious in approaching the plant-based meat trend in the US market.
The chain has already started selling McPlant burgers in the United Kingdom and some European markets, including Sweden, Denmark, Austria, the Netherlands.
Although the company is taking its time to learn more about consumer demand, other competing fast-food chains have already added plant-based meat items to their menus.
Burger King, a rival burger chain owned by Restaurant Brands International Inc (NYSE: QSR), added the Impossible Whopper, developed by Beyond rival Impossible Foods, to its menu more than two years ago.
Beyond struggling to gain traction
Moreover, for Beyond Meat, the broader test is a massive opportunity to push its meat substitutes, although the test will be conducted on a tiny fraction of McDonald’s 14,000 US restaurants.
Wall Street analysts have grown bearish on the stock, saying the company is struggling with competition against Impossible Foods.
In December, Beyond hired Tyson Foods veteran Doug Ramsey as its chief operating officer to prepare for a larger launch with McDonald’s and other fast-food menu items this year.
Earlier this month, Yum Brands Inc’s (NYSE: YUM) KFC restaurants started selling Beyond Meat’s plant-based chicken across the US for a limited time.
Picture Credit: Happy Lifestyle