Beyond Meat Says It's Co-Creating McDonald's Burger
Investing.com
Published Nov 09, 2020 02:29PM ET
By Christiana Sciaudone
Investing.com -- Beyond Meat (NASDAQ:BYND) dramatically reversed course Monday after initially slumping as McDonald's (NYSE:MCD) said it was making its own plant-based beef.
Investors discovered hours later that those patties are, according to Beyond Meat, being developed with Beyond Meat.
The fast food chain said in its virtual investor day that the McPlant will be tested next year in select markets, USAToday reported. It neglected to mention any Beyond Meat involvement, which the market interpreted as meaning McDonald's would now sell a rival veggie burger. Investors dumped shares of Beyond Meat, briefly halting the stock, which fell 8%.
A few hours later, Beyond Meat said it was actually involved in the development of the McPlant and was a co-creator along with the Golden Arches, Bloomberg reported. McDonald's declined to comment. Shares of Beyond Meat turned higher after the news but have since dropped back down, trading lower by about 2%.
Last month, Beyond Meat hit a record, rallying more than 150% in 2020. The stock has jumped repeatedly this year as the company has announced new products, including plant-based meatballs and expansion in China. McDonald's had tested a Beyond Meat patty in Canadian stores until April of this year.
"In the future, McPlant could extend across a line of plant-based products including burgers, chicken-substitutes and breakfast sandwiches," Ian Borden, McDonald's international president, said at the investor meeting.
"The McPlant delivers our iconic taste in a sink-your-teeth-in (and wipe-your-mouth) kind of sandwich," McDonald's said. "It’s made with a juicy, plant-based patty and served on a warm, sesame seed bun with all the classic toppings."
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