Analysts say that McDonald’s, Beyond Meat have plans to expand McPlant in the US in 2022

FILE PHOTO: The McDonald's logo is seen outside the McDonald's fast food chain in New York
FILE PHOTO: The McDonald’s logo is seen outside the McDonald’s fast food chain in New York, U.S., October 22, 2019. REUTERS / Shannon Stapleton / File Photo

December 14, 2021

By Hilary Russ

NEW YORK (Reuters) – McDonald’s Corp is planning a major expansion of its factory-made burgers with Beyond Meat Inc in the United States by 2022, according to two Wall Street analysts.

The companies began testing the “McPlant” brand at eight McDonald’s in the US in November. The restaurants sold enough sandwiches — about 70 a day — to warrant an expansion. experience, analysts said.

McDonald’s said when it announced the tests that customers would have to wait for more updates. The company declined to provide new details to Reuters on Tuesday. Beyond did not respond to a request for comment.

Any move by McDonald’s to widely sell a plant-based burger across more than 13,500 locations in the United States could benefit plant-based meat producers in general and Beyond in particular.

Competitors have been vying for partnerships with restaurant chains as they add vegan and vegetarian menu options. Beyond is partnering with Taco Bell owner Yum Brands Inc, while Impossible Foods is partnering with Burger King, a unit of Restaurant Brands International Inc.

BTIG analyst Peter Saleh said in a research note on Monday that he expects the product to be available at about 700 restaurants across some regions as a limited-time offer in February and March. , with the possibility of a nationwide launch in 2023.

Unlike the current test, the expansion will come with local and regional advertising sponsored by McDonald’s franchisees and possibly Beyond, Saleh said.

Separately, Piper Sandler analyst Michael Lavery said in a note that McDonald’s could roll out McPlant burgers nationally by the end of the first quarter of 2022, earlier than previously anticipated.

That could put pressure on margins for Beyond. While it would sell more patties, it was able to do so for a lower price — nearly $4.00 per pound than Lavery’s initial forecast of $5.25 — as it sought to lower the price of protein. animals by 2024, he said.

(Reporting by Hilary Russ; Editing by Aurora Ellis) Analysts say that McDonald’s, Beyond Meat have plans to expand McPlant in the US in 2022

Bobby Allyn

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