McDonald's to make its own 'McPlant' items, hits faux meat maker Beyond Meat

Reuters

Published Nov 09, 2020 17:38

(Reuters) - Burger chain McDonald's Corp (N:MCD) said it would debut its own plant-based meat alternatives called "McPlant" in 2021, ending speculations over who the world's biggest restaurant chain would partner with in a new frontier for the fast food industry.

The decision hit shares of plant-based meat maker Beyond Meat (O:BYND), which was seen as the front runner for a contract as it had conducted tests of a so-called "P.L.T." burger at nearly 100 McDonald's locations in Ontario, Canada, earlier this year.

Beyond Meat was not immediately available for comment. Its stock was down nearly 8% in morning trading, ahead of its quarterly results after market close.

McDonald's, which reported market-beating profit and revenue estimates for the third quarter on Monday, did not comment on why it did not continue with Beyond Meat's offerings in the United States.

"Plant-based products are an ongoing consumer trend. It's not a matter of if McDonald's will get into plant-based, it's a matter of when," McDonald's Chief Executive Officer Chris Kempczinski said on a call with analysts.

Analysts, rival fast food companies and plant-based protein producers have been closely watching McDonald's plans as it is one of the few national chains yet to sell plant-based meat burgers on a permanent basis.

While other chains have started offering plant-based meat options, including Restaurant Brands International Inc's (TO:QSR) Burger King, White Castle and Dunkin' Brands Group Inc (O:DNKN), a McDonald's contract could be the biggest and would put the plant-based meat movement front and center in mainstream America.