BYND stock is moving higher in early trade on January 8, 2020, after McDonald’s announced it was expanding its plant-based meat offerings to 52 stores.
Bullish options flow was detected in BYND stock on January 8, 2020.
McDonald’s (MCD) said it is expanding the global test of its plant-based burger to include 52 restaurants in Southwestern Ontario, starting January 14, for 12 weeks. The P.LT., which stands for Plant. Lettuce. Tomato., is made with a Beyond Meat (BYND) plant-based patty that has been crafted exclusively by McDonald’s, the company said in a statement. The global P.LT. test first launched last September in 28 restaurants in London, Ontario and the surrounding areas. The additional restaurants now participating in the test include selected locations in Kitchener-Waterloo, Guelph and surrounding areas, while the majority of the restaurants that were part of the initial test in London and nearby towns will continue to offer the P.L.T. without interruption. As of January 14, the P.L.T. will be priced at C$5.99 plus tax. “The initial test of the P.L.T. allowed us to learn more about guest demand and how to integrate this new menu item into restaurant kitchen operations, while delivering the P.L.T. to our guests with the level of quality and craveability they know and love from McDonald’s,” said Jeff Anderson, Chef, McDonald’s Canada. “As a test and learn company, the McDonald’s expansion of the P.L.T. into more restaurants in the Southwestern Ontario region will help us learn more about our guests’ tastes while continuing to provide variety within our menu.” Source: https://news.mcdonalds.ca/press-releases-stories/mcdonalds-expands-test-plt-now-52-restaurants-across-southwestern-ontario
Beyond Meat’s (BYND) public float has increased to 65% of shares outstanding after the lock-up expiry versus 15% at the initial public offering, which makes the shares more investable now, Bernstein analyst Alexia Howard tells investors in a research note. The stock’s risk/reward is skewed towards the upside, especially if plant-based meat becomes more price competitive versus regular meat as African Swine Fever in China drives global protein prices up, contends Howard. She believes a key question is whether McDonald’s (MCD) will partner with Beyond Meat in the U.S., and that such an event could add $168M, or 60%, to Beyond Meat’s fiscal 2019 sales guidance of $265M-$275M. The analyst thinks the fair multiple for Beyond Meat is 8 to 10 times sales. This implies a fair value of $84 to $104 per share in her base case and $105 to $130 per share assuming the McDonald’s partnership materializes. Howard keeps an Outperform rating on Beyond Meat with a $106 price target. The stock closed Tuesday up $9.30, or 12%, to $83.89.
On January 7, 2020, Impossible Foods is no longer trying to win a coveted deal to supply McDonald’s (MCD) with plant-based burgers, telling Reuters it cannot produce enough of its imitation meat to partner with the fast-food chain, Richa Naidu and Hilary Russ write. Referring to McDonald’s, Impossible Foods CEO Pat Brown told Reuters in an interview that, “it would be stupid for us to be vying for them right now … Having more big customers right now doesn’t do us any good until we scale up production.” Impossible Foods and its rivals, including Beyond Meat (BYND), are duking it out over coveted partnerships with fast-food chains to cash in on the roughly $3,500 per person average that Americans spend each year on food away from home, the authors add. Source: https://business.financialpost.com/pmn/business-pmn/impossible-foods-abandons-pursuit-of-mcdonalds-burger-deal