Beyond Meat Scores Lucrative Supply Deals With McDonald's, KFC, Pizza Hut, Taco Bell

Beyond Meat Scores Lucrative Supply Deals With McDonald's, KFC, Pizza Hut, Taco Bell

Beyond Meat, Inc. BYND has entered into supply deals with fast-food giants McDonald’s Corp. MCD and Yum Brands! Inc. YUM.

The announcement of the deals came on the same day that the alternative meat maker reported a wider net loss for the fourth quarter despite higher revenues.

What Happened: As part of a three-year deal with McDonald’s, Beyond Meat said it will be the preferred supplier for the patty in the McPlant, a new plant-based burger being tested in select McDonald’s markets globally. The two companies will also work to co-develop plant-based options for chicken, pork and egg as part of McDonald’s broader McPlant platform.

Beyond Meat said it will expand its partnership with Yum! Brands to co-create and offer plant-based protein menu items that will be exclusive to KFC, Pizza Hut and Taco Bell over the next several years.

Why It Matters: Beyond Meat’s business was hurt by the closure of restaurants amid the pandemic-induced lockdowns. The two supply deals are expected to boost the company’s growth prospects and also indicate that restaurants continue to see strong demand from health-conscious consumers for meat alternatives.

Beyond Meat also announced a joint venture with PepsiCo, Inc PEP late last month to develop, produce, and market plant-based snacks and beverages.

The company has been looking to adapt to global markets with relevant products and launched plant-based minced pork in China late last year.

Price Movement: Beyond Meat shares closed 5.5% lower at $143.75 on Thursday, but added almost 0.9% in the after-hours session.

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Posted In: KFCPizza Hutplant-based meatTaco BellveganNewsRetail Sales