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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