Beyond Meat CEO Ethan Brown on Tuesday sought to clear the air on his company’s relationship with McDonald’s after shares tanked the day prior on news of the restaurant chain’s forthcoming plant-based line.
Beyond Meat investors reacted negatively when the meatless food maker was not named as a supplier for McDonald’s “McPlant” burgers, sending the stock down nearly double digits at its lows Monday.
The stock recovered much of those losses after Beyond implied it is behind the product line, though the verdict remains out and Brown is walking that suggestion back.
“I believe our relationship with McDonald’s is very strong. We’re involved with McDonald’s on a number of different fronts. We’re doing things now to prepare for things in the future that involve McDonald’s,” he told CNBC’s Jim Cramer on “Mad Money.” “I just can’t go out and speak for the company as to which supplier they’ve chosen or who they’re going to be working with.”
McDonald’s said it plans to test a meat-free burger in select restaurants next year as it seeks to list plant-based foods on its menu. The McPlant brand could also include chicken substitutes in the future, but the company did not say who it would work with on the products.
In the third quarter last year, the Golden Arches began testing a plant-based burger using Beyond Meat patties in Canada. McDonald’s put the project to rest in April 2020 and has not revealed any plans to revive the burger. Former McDonald’s CEO Don Thompson is a board member for Beyond Meat.
Investors who sold the stock worried that McDonald’s could be competing with Beyond Meat instead of providing the company with a major growth opportunity, one analyst said. Read from source….