Posts tagged with "Beyond Meat"

Beyond Meat stock falls following conclusion of the McDonald’s McPlant test

August  1, 2022

Shares of  Beyond Meat—the Los Angeles-based producer of plant-based meat substitutes—fell 6% in morning trading on Thursday, July 28, after J.P. Morgan revealed that  McDonald’s  had ended its U.S. test of the McPlant burger, which uses Beyond’s meatless patties, reports CNBC.

The fast-food giant confirmed to CNBC on Thursday that the McPlant test had concluded as planned. Neither McDonald’s nor Beyond Meat has announced any plans for additional testing or a nationwide launch.

 Indeed, Beyond’s stock has fallen 53% this year—dragging its market value down to $2.06 billion. Wall Street has become skeptical about the company’s long-term growth opportunities as grocery sales lag.

 Moreover, buzzy partnerships with restaurant giants like Pizza Hut owner Yum Brands and McDonald’s haven’t progressed to many permanent nationwide menu offerings yet.

 McDonald’s first tested the meat-free burger in eight restaurants in the United States in November to try to get an idea of how the menu item would impact its kitchens. In mid-February, it rolled the McPlant out to roughly 600 locations to learn more about consumer demand for the menu item.

 Analyst research reported lackluster demand for the Beyond burger. BTIG analyst Peter Saleh wrote in a June note that franchisees told him that McPlant sales were disappointing, coming in at or below the low end of projections.

 J.P. Morgan analyst Ken Goldman wrote in his note on Thursday that some McDonald’s restaurant employees told him that the burger didn’t sell well enough, potentially putting a nationwide launch in jeopardy.

“Consensus contemplates 21% growth for BYND’s total top line this year, followed by another 25% next year. These rates will not be easy to hit, in our view, without [McDonald’s] in the United States,” Goldman wrote.

 McDonald’s and Beyond  announced a three-year partnership in early 2021. The burger chain already has started selling McPlant burgers in some international markets, including Sweden, Denmark, Austria, the Netherlands and the United Kingdom. 

 In May, Beyond Meat CEO Ethan Brown said that the McPlant is selling well in the U.K. and Austria.

 Beyond is expected to report its second-quarter earnings after the bell on August 4.

 Research contact: @CNBC

Dieticians: Plant-based Beyond and Impossible burgers are no healthier than red meat

July 8, 2019

If you had a regular burger on July 4—but feel a little guilty about not choosing one of the newly popular plant-based alternatives—no worries.

Although the marketers behind El Segundo, California-based Beyond Meat and its competitor, Redwood California-based Impossible Foods, say that their products are better for us than meat, dietitians are not completely sold on the benefits, CNBC reports.

Scientific research has linked frequent consumption of red meat to heart disease and cancer. Beyond’s website claims that animal-based meats lead to a 16% increased risk of cancer and 21% increased risk of heart disease.

In theory, then, eating plant-based imitations of red meat is healthier. However, Alissa Rumsey, owner of Alissa Rumsey Nutrition and Wellness in New York City, told CNBC that—while she believes that we benefit from eating more plants — she isn’t sold on these plant-based options.

“They are not necessarily healthier than beef burgers,” Rumsey, a registered dietitian, said. “They’re totally fine to eat, but there’s no need to replace your beef burger if you don’t enjoy these.”

Rumsey pointed to the amounts of sodium and saturated fat in plant-based burgers, which are roughly the same as those in a traditional beef burger.

What’s more, because both the Impossible Burger and the Beyond Burger are processed foods, registered dietitian Catherine Perez—who specializes in plant-based diets at The Charge Group in Media, Pennsylvania—told CNBC that she still puts them in the “indulgence category.”

The Impossible Burger uses heme from soy plants for a meaty taste and realistic juices, as well as soy protein concentrate. However, processed soy is controversial because it strips out some of the key nutrients found in traditional soy foods like tofu and can contain unhealthy compounds.

The Beyond Burger does not contain soy and instead uses pea protein isolate for its primary protein source.

All three dietitians said that consumers should try to incorporate more whole foods—rather than processed foods—into their meals.

Research contact: @CNBC