Advertisement for McPlant burgers, a vegetarian alternative to the more traditional burgers by fast food giant McDonalds on July 11, 2022 in London, UK .
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The fast food giant confirmed to CNBC on Thursday that the McPlant test ended as planned. Neither McDonald’s nor Beyond Meat announced any plans for additional testing or a nationwide launch.
Shares of Beyond have fallen 53% this year, dragging its market value down to $2.06 billion. Wall Street has become skeptical of the company’s long-term growth opportunities as grocery sales lag. Furthermore, vibrant partnerships with restaurant giants like Pizza Hut . owner Brand Yum and McDonald’s have yet to develop many permanent menu offerings across the country.
McDonald’s first tested meat-free burgers at eight restaurants in the US in November to see how the menu item would affect their kitchens. In mid-February, it rolled out McPlant to about 600 locations to learn more about consumer demand for menu items.
Research by analysts reports lackluster demand for Beyond burgers. BTIG analyst Peter Saleh wrote in a June note that franchisees had told him McPlant’s revenue was disappointing, coming in at or below the low end of forecasts. JP Morgan analyst Ken Goldman wrote in his note Thursday that several McDonald’s restaurant employees have told him the burgers aren’t selling enough, potentially making the nationwide launch difficult. hazardous.
“Consensus projects 21% growth to BYND’s peak total revenue this year, followed by another 25% next year. These ratios will not be easy to achieve, in our view, if do not have [McDonald’s] in America,” Goldman wrote.
McDonald’s and more announced a three-year partnership in early 2021. The burger chain has started selling McPlant burgers in several international markets, including Sweden, Denmark, Austria, the Netherlands and the UK. In May, Beyond Meat CEO Ethan Brown said McPlant was selling well in the UK and Austria.
Beyond is expected to report second-quarter earnings after the bell on August 4.