Beyond Meat Stock Jumps on Hopes McDonald’s Partnership Will Be Permanent

Text size

Beyond Meat

stock jumped on Wednesday, following reports that its McPlant partnership with restaurant behemoth

McDonald’s

may be permanent. That could be a catalyst for the plant-based protein maker as its retail sales continue to lag, but McDonald’s says its position hasn’t changed.

Speaking at Fast Company’s Most Innovative Companies Summit, McDonald’s (ticker: MCD) Global Chief Marketing Officer Morgan Flatley said that the customer dining experience will “dramatically change” in the coming years, and is likely to include “very established products” with Beyond Meat (BYND) that build from the McPlant partnership, formed last year, according to the publication.

Beyond Meat stock ended 7.6% higher at $38.22, after having risen as much as 21% earlier Wednesday. McDonald’s closed down 0.6%, at $247.14. The

S&P 500
closed up 0.2%.

“Nothing new to report here,” McDonald’s told Barron’s. “The original story was misconstrued—the McPlant has been part of our global core menu lineup since November 2020. There are no new updates in the U.S.”

Fast Company later clarified its article to say that the McPlant burger is “a ‘core menu item’ available in local markets depending on consumer demand.”

Beyond Meat didn’t return Barron’s request for comment.

Investors have been hungry for news of the products, given that there have been mixed reports as to how well the McPlant products have been selling in test markets.

The idea of a permanent faux-meat product on McDonald’s menu isn’t a stretch. Meat and dairy alternatives have been gaining ground in recent years, with many expecting that the multibillion-dollar market can continue to grow, and McDonald’s does offer more vegetarian options in some non-U. S. restaurants.

Beyond Meat has had plenty of success with high-profile restaurant partnerships in the past, including repeated limited-time products in

Yum! Brands

(YUM) locations. If it were to have permanent position on McDonald’s menu, it would presumably mean a larger and steadier revenue stream.

Of course, restaurant sales still account for only about a quarter of Beyond Meat’s business, and lackluster sales at grocery stores and other retailers have led to earnings disappointments in recent quarters. Investors will want to see improvement in that division.

Write to Teresa Rivas at [email protected]