Beyond Meat (BYND) is cooking on McDonald’s (MCD) new Double McPlant launching in the U.K. & Ireland
3:38 pm Thursday, December 29th, 2022
Beyond Meat (BYND) is cooking today after one of its key partners, McDonald’s (MCD), announced it would roll out the new Double McPlant in all its U.K. and Ireland-based locations beginning on January 4. Part of why shares of BYND are rebounding strongly on the announcement after hitting 52-week lows yesterday is their high short interest of 39%, which can add fuel to up-and-down swings as shorts cover or add to their positions.
MCD has played a critical role in BYND’s foodservice success, particularly outside the U.S. For example, the McPlant has already become a permanent menu item in the U.K., Ireland, Austria, and the Netherlands, underscoring healthy demand for the product.
Although adoption in the U.S. has been slower, franchises like Taco Bell (YUM) and Panda Express have started offering BYND options at select locations.
Expansion throughout the foodservice industry is pivotal to BYND’s success at the grocery store as consumers may choose plant-based meats to cook at home after trying an already-prepared dish.
Nevertheless, headwinds still linger. Inflation is likely BYND’s biggest opponent over the near term. The company’s offerings tend to command higher price points than animal-based proteins. With consumers currently trading down from premium meat options, such as some cuts of beef, BYND’s grocery store options will likely not see significant demand until inflationary pressures ease more considerably.
However, in the interim, BYND is fixated on achieving positive cash flow and hastening its path to profitability. With a narrowed focus on its foodservice partners as part of this strategy, MCD’s announcement today underpins early success. It may also indicate further expansion of current BYND offerings at several other franchise partners.
