What Happened: Oatly inked a new deal with McDonald's that will bring Oatly Barista Edition to all McDonald's McCafé locations in Austria.

"We have noticed an increased demand for oat-based dairy alternatives among our guests and responded to that," said Tanja Wallner, marketing professional of McCafé and Breakfast at McDonald's Austria.

Oatly is the largest oat drink company in the world. The new partnership will help Oatly introduce its product to an even wider audience of consumers.

Following the announcement, RBC Capital analyst Nik Modi reiterated Oatly with an Outperform rating and a $7 price target.

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OTLY Price Action: Oatly has a 52-week high of $5.79 and a 52-week low of $1.28. 

The stock was up 6.93% at $2.47 at time of publication, according to Benzinga Pro.

Photo: courtesy of Oatly.