Beyond Meat announced this week that they have signed a deal with fast-food giants Yum Brands and McDonald’s. The collaborations couldn’t have come at a better time for Beyond Meat, as their shares recently fell due to a bigger-than-expected quarterly loss which occurred as a result of weak restaurant sales brought on by the pandemic, as well as the increasing cost of global expansion.
Recently shares for Beyond Meat were down by about 3%. The company is remaining hopeful due to an increase in restaurant orders throughout the nation, but the newest fast food collaborations will hopefully bring the company back to their pre-pandemic success.
Wall Street specifically cited the loss in revenue and shares for Beyond Meat as 34 cents lost per share (they were expecting 13 cents for the quarter) and earning $101.9 million in revenue (expecting $103.2 million). “The company reported its fiscal fourth-quarter net loss of $25.1 million, or 40 cents per share, widened to a loss of $452,000, or 1 cent per share, a year earlier.”
Total net sales rose by 3.5% to $101.9 million, and US grocery revenues for the company rose by 76% this quarter; an understandable increase considering how much grocery store delivery services have grown in popularity with the pandemic.
Beyond Meat CEO Ethan Brown said that “Beyond is still the top plant-based meat alternative in grocery stores. Listen in total U.S. foodservice revenue tumbled 42.6% during the fourth quarter as the pandemic continued to weigh on restaurant demand for meat substitutes. But the years-long partnerships with McDonald’s and Yum show that restaurant companies still believe consumers want plant-based alternatives.”
Beyond has just signed a three-year long deal with McDonald’s which will make the company the prime plant-based patty provider for the fast food giants McPlant burger; currently being tested in some global markets. McDonald’s and Beyond also announced that they would be collaborating to develop new substitutes for pork, chicken, and egg, to really make their menu more inclusive.
Beyond and Yum Brands will also be working together to create exclusive menu items for KFC, Taco Bell, and Pizza Hut over the next few years. The financial specifics of these deals were not made public information, but based on the fact that Beyond is now teaming up with some of the world’s most notable fast food brands, it likely was a big one.
“These deals are enormous. They are the biggest deals you could possibly put together in food in our sector. And we don’t want people to get ahead of themselves.”
Brown explained that “Beyond is trying to position itself as a global player. Its international revenue fell 16.5% during last quarter, dragged down by declines in its foodservice segment. But our spending in Europe and China is showing massive success.”
Brown announced that Beyond would be releasing two updated meatless burger patties in the spring as well. Both patties are thought to be the juiciest burgers from Beyond yet, one being made with 55% less saturated fat than a traditional beef patty.
Eric Mastrota is a Contributing Editor at The National Digest based in New York. A graduate of SUNY New Paltz, he reports on world news, culture, and lifestyle. You can reach him at firstname.lastname@example.org.