Vegetarian meat producer Beyond Meat said Thursday that it has signed multi-year supply deals with McDonald’s and Taco Bell’s owner Yum Brands, signaling a consumer drive toward plant-based alternatives and Beyond Meat’s leadership role in the field.
But the latter’s shares fell after reporting sales and a loss that missed analysts’ expectations by a large margin for the second consecutive quarter, and Beyond Meat said its current global deal with McDonald’s for three years would make it the “preferred” supplier of the world’s largest restaurant chain to offer its new vegan burgers McPlant Burger, Together, the two companies will create other vegan menu items such as chicken, pork and vegan eggs.
Beyond Meat said it would design a vegan menu similar to Yum Brands such as KFC, Pizza Hut and Taco Bell, and its previous customers include Starbucks, Denny’s and Dunkin’; and since both McDonald’s and Yum! Brands usually work with multiple suppliers, meaning that competitors like Impossible Foods may have an opportunity to work with the two giants.
Beyond Meat reported a 3.5% increase in net sales to $101.9 million in the quarter ended December 31, but it missed analysts’ expectations of $104.8 million.
The company’s loss increased from $452,000, or 1 cent per share, to $25.1 million, or 40 cents per share, as this loss came after it had booked $3.7 million in advance from the expenses of the Covid-19 crisis due to its need to write off the value of food stocks that it was unable to sell.
Excluding specific expenses, Beyond Meat’s loss amounted to 34 cents per share, which means that it failed miserably to meet analyst expectations, who estimated that the company’s loss would reach only 13 cents per share.