McDonald's is ending its U.S. test of the McPlant Burger, which uses Beyond Meat's meatless patty option. Neither company has announced plans for additional testing or a nationwide launch, reports CNBC.
The fast-food chain first used the meatless option in eight restaurants last November, which turned into a larger rollout to 600 locations beginning in February to learn about consumer demand for the item.
In a recent note, Ken Goldman, an analyst at J.P. Morgan wrote that some McDonald's restaurant employees told him that the burger didn't sell well enough, possibly jeopardizing a nationwide launch.
Similarly, Peter Saleh, an analyst from BTIG, a global financial services firm, wrote that the franchisees said sales of the McPlant were disappointing, either just hitting the low end of projections, or coming in too low. At the end of the test, shares of Beyond Meat fell six percent.
The product also launched in some international markets, including Sweden, Denmark, Austria, the Netherlands, and the U.K. Ethan Brown, CEO of Beyond Meat noted that, particularly in the U.K. and Austria, the McPlant has been selling well. Domestically, however, the sales outlook is less enthusiastic. According to a report by Eat This, Not That! suburban areas in the U.S. saw daily demand for the plant-based burger as low as three to five, coming in below the predicted 40 to 60 target. Full Story
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