McDonald’s will be testing a meatless burger next year; Beyond the meat stock falls

McDonald’s will be testing a meatless burger in multiple markets next year adding plant-based menu offerings, which it coined “McPlant.”

International President Ian Borden said McPlant was created “by McDonald’s and for McDonald’s”. Borden said the McPlant line could also include chicken substitutes.

Shares of Beyond Meat, which made the meatless patties for McDonald’s Canadian test, fell 6% in morning trading on the news. The action was briefly halted for volatility.

McDonald’s began testing a meatless burger, dubbed the PLT, at several dozen Ontario restaurants in September of last year. In April, the chain terminated the pilot and has since said it has no plans to bring back its PLT burger just yet.

Former McDonald’s CEO Don Thompson, who was an early investor in Beyond, sits on the board of directors of the plant-based meat maker. Investors have speculated that the bond between the two companies could mean a long-term partnership and make Beyond a supplier to America’s largest restaurant chain in terms of sales.

Other McDonald’s international markets have had more success with meatless burgers. German restaurants, for example, have added vegetarian burgers made by Nestlé to their menus.

Rival Burger King, which is owned by Restaurant Brands International, launched a plant-based Whopper in the United States, with a patty made by privately-owned Impossible Foods last year.

McDonald’s shares rose less than 1% in morning trading after the company’s third-quarter earnings and earnings beat analysts’ estimates. The company also released an investor update, forecasting mid-digit system-wide sales growth in 2021 and 2022 and sharing more information on its sales growth strategy.

Beyond is expected to release its third quarter results after the bell Monday.