On the news of McDonald’s Corp (NYSE:MCD) to test P.L.T. (Plant, lettuce, Tomato) of Beyond Meat Inc (NASDAQ:BYND) on September 30, 2019, the shares of Beyond increased by 13% (in pre-market trade). The giant fast-food inches closer to Beyond what Wall Street has been longing for and decides to test Beyond’s plant-based burger in twenty-eight restaurants in Southwestern Ontario.
Tie-up to increase sales
The long-sought tie-up would help to increase the sales of both outlets. On the backdrop of the increased penchant of customers for plant-based foods, McDonald’s introduces Beyond’s P.L.T., an apt name for the burger, in 28 restaurants. It is to be notable that Don Thompson, a former chief executive officer of McDonald’s, is a member of the board of Beyond. Wall-Street expects more extensive tie-up between the two companies, but it is too early to think on that line. However, it is big news for Beyond.
Brian Holland, a food analyst at D.A. Davidson, said the supply accord would not be beneficial for Beyond in the long term. It could create volatility in the customer base because McDonald’s do not think merely on economic interest when compared to affinity towards the brand. The food analyst put a sell rating on Beyond stock several weeks ago because of the lack of customers interest in plant-based foods.
McDonald scout for animal-free foods for the consumers worldwide. The company yearns to increase the supply of plant-based protein to the customers. It introduced a vegan burger to German consumers. Nestlé’s Garden Gourmet Patty features in the Big Vegan T.S. series of McDonald’s. The Big Vegan T.S. series also comprises salad, tomato, onions, ketchup, and mustard. Customers can enjoy a typical taste of McDonald’s in this vegan burger. Nestle introduced the standalone product Garden Gourmet burger in Norway, The Netherlands, Sweden, Demark, Belgium, Austria, Germany, and Finland as the first step in April 2019.
McDonald’s would introduce vegan sandwich to the U.S. customers this fall. It expects to satisfy the taste buds of customers and balances the intake of proteins. According to the Head (food business), Wayne England, the new products do not compromise on the cooking experience, texture, and flavor.