McDonald's chances of adding the McPlant to the nationwide menu are 'fairly high,' says BTIG

McDonald's chances of adding the McPlant to the nationwide menu are 'fairly high,' says BTIG

McDonald's chances of adding the McPlant to the nationwide menu are 'fairly high,' says BTIG

Analysts at BTIG say although McDonald’s Corp.
MCD,
+0.88%

“claims” to be testing the McPlant in eight restaurants, they think there’s a “fairly high” chance that the plant-based sandwich will rollout out nationwide in 2022. “We believe interest in adding a plant-based meat option to menus is accelerating domestically at quick-service operators,” analysts led by Peter Saleh said. “We believe that 2022 will be a pivotal year for plant-based meat in the QSR segment with many brands introducing the product or increasing their offering to further differentiate themselves from competitors.” Analysts cite plant-based options at other fast-food chains, like the Impossible Whopper at Restaurant Brands International Inc.
QSR,
+1.11%

chain, Burger King. “In our view, many of the brands that are testing the offering will launch the product systemwide in effort to leverage national advertising to determine the true sales potential of the products.” BTIG estimates that putting the McPlant on the menus at 13,000 McDonald’s locations could add $200 million in revenue for Beyond Meat Inc.
BYND,
+1.07%

Like Credit Suisse analysts, BTIG think the eight test restaurants were chosen to determine the reception among a broad group of customers. BTIG rates Beyond Meat stock neutral, saying that while the company has strong brand awareness and consumers are adding plant-based meat alternatives to their diets, competition and weakness in the foodservice channel are hurting the business with prolonged COVID-19 disruption stalling a rebound as restaurants emphasize efficiency in the kitchen. Beyond Meat shares have fallen 13.7% for the year to date. McDonald’s stock is up 12.6%. And the Dow Jones Industrial Average
DJIA,
-0.12%

is up 16% for the period.