Wall Street analysts have had their say on Beyond Meats new test with McDonald’s in Canada, and they believe it has gone just okay. Beyond Meat founder and CEO Ethan Brown, who has helped design and create the plant based beef substitute in between the McDonald’s bun, believes the assessment by the analysts is way off point based on the sales numbers he has.
In a statement issued by CEO Ethan Brown he said “Everything I am seeing, I feel very optimistic about the long-term relationship with McDonald’s. If we are successful in this test — which everything is pointing in that direction — we should see a national expansion. But that’s up to McDonald’s, not me. McDonald’s began a small test with the plant based burger supplied by beyond meat in 28 of its Ontario restaurants on the 30th of September. The newly marketed burger being named the P.L.T (Plant, Lettuce, and Tomato).Investors in Beyond Meat and McDonald’s have long awaited a tie up for both companies, which could see a huge growth for both companies.
The reason that a partnership between the companies has been expected, is that former McDonald’s CEO Don Thompson sits on the board at Beyond Meat. Meanwhile, consumer demand for plant- based foods continues to grow at a huge rate, and the success of plant based substitutes can be seen with Burger King’sthird quarter results that surprised investors with the launch of their Impossible Whopper. So it makes complete sense for McDonald’s to follow suit and create their own plant based burger.
Currently beyond meat are inching closer and closer to a larger rollout in the US with their partnership with McDonald’s, however both companies are holding their cards close to their chests, and not revealing any secrets. While we wait to see just how much impact the beyond meat partnership with the golden arches will have, the company already have strong partnerships with Dunkin’ Brands and KFC which given the current consumer sentiment, could see the company have great results moving into 2020. The partnerships with both of those companies already had a huge effect on their third quarter results, so with consumer demand growing we can only assume that the upwards trend will continue.
Beyond Meat surprised many investors and analysts by turning its first ever quarterly profit after its IPO in may this year, which is great news for the company. The company posted earnings of 6 cents per share, which was a 100% increase from analyst estimates at 3 cents.
Yuto Haruki – NA International