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Beyond Meat Gains as McDonald’s McPlant Burger Sales Surprise

Published 01/26/2022, 10:23 AM
Updated 01/26/2022, 10:26 AM
© Reuters

By Dhirendra Tripathi

Investing.com – Beyond Meat stock (NASDAQ:BYND) was up 4% Wednesday as a Piper Sandler analyst found that sales of the company’s McPlant burger at McDonald’s (NYSE:MCD) are doing better than expected.

The world’s biggest fast-food chain began testing the plant-based burger created with Beyond Meat in eight restaurants in November. A wider-scale experiment is scheduled to begin Feb. 14.

According to reports, analyst Michael Lavery feels the boost to Beyond’s revenue from McPlant sales could be as high as $215 million annually.

In a note to clients Tuesday, Lavery said test locations are selling about three-times more of McPlant burger than he initially estimated.

However, while Lavery continues to be bearish on Beyond Meat, he said a national rollout of McPlant by McDonald’s could be a near-term catalyst for the stock.

Beyond Meat share price is down more than 61% in the past year as the company has struggled to bring its products to market. Consumers have not adapted to faux meat at the pace that some expected them to, in part due to high prices.

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