Posts tagged with "Yum Brands"

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

Sweetgreen will pilot a drive-in restaurant as part of suburban push

December 17, 2020

These are the “salad days” for the restaurant chain Sweetgreen, which has been been offering contact-free delivery and pickup at its 91 restaurants throughout the pandemic, CNBC reports..

Now, Chief Concept Officer Nic Jammet says that the business pivot that the company has taken since the virus took hold in the USA earlier this year has accelerated its decision to pilot test a new type of eatery—slated to open next winter in Highlands Ranch, Colorado next winter. At the test site, customers will be encouraged to order on-site using dedicated parking spaces with intercom boxes connected to the chain’s app; and to pick up their food from drive-thru lanes.

As Sweettgreen expands from urban settings into suburban America, it joins the flood of restaurant companies that have unveiled new designs inspired by the coronavirus pandemic. Fast-food chains like Yum Brands’ Taco Bell and Restaurant Brands International’s Burger King have focused their new designs on making delivery and digital orders even more convenient.

But the fast-casual segment, which includes Sweetgreen and Chipotle Mexican Grill, has been influenced by the success of drive-thru lanes. Drive-thru orders grew by 24% across the restaurant industry in October, according to the NPD Group.

Like Sweetgreen, Shake Shack will open its first ever drive-thru lane in 2021, says CNBC. And Chipotle, which has been building its “Chipotlanes” for several years, is planning to add even more drive-thru lanes as same-store sales at those restaurants outpace the rest of its footprint.

Already, says Jammet, “A lot of our customers [… already are adopting this] behavior of using the Sweetgreen app to order ahead and come in ahead to pick it up.”

Research contact: @CNBC

Starbucks does ‘plastic surgery’ to create environmentally friendly coffee cups

March 10, 2020

Starbucks has created a “greener” coffee cup by inserting a liner made out of biodegradable materials, rather than continuing to rely on the thin plastic liners added to most paper cups to keep liquids from seeping through.

Starting on Monday, March 9,, a new BioPBS-lined cup will be tested in select stores in Vancouver, Seattle, San Francisco, New York, and London.

The company said in a press release that it is evaluating the new liners because the plastic in its cups has been difficult to separate from other components during the  recycling process.

Starbucks executives said they would ask baristas and customers whether the new cup keeps drinks hot and avoids leaks. They hope customers won’t notice any difference from the current cups.

While the company characterizes the new design as an “exciting step forward,” Starbucks will continue to evaluate additional NextGen Cup Challenge-winning concepts and cup technologies, as well as learn from other reusable and recyclable innovations to find the most sustainable solutions for its business, partners (employees) and customers.

Starbucks is one of many consumer companies working to address customer concerns that they generate too much waste. Public awareness over the environmental risks posed by plastic waste is at the highest level ever, according to a McKinsey & Co. report released last year.

According to a report by The Wall Street Journal, McDonald’s has pledged to procure much of its nonplastic packaging from recycled or sustainable sources by this year. What’s more, Yum Brands. last month said it would make all packaging at its Taco Bell division sustainable by 2025.

Starbucks and McDonald’s in 2018 committed $10 million to a partnership among consumer companies working to develop more sustainable cups. Starbucks also started its own internal research and set 2022 as a goal for a new cup for hot drinks

Starbucks

VaResearch contact: @Starbucks