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Beyond Meat Shares Rose On McDonald’s Announcement, But Demand Issues Remain

Sam Boughedda trader
Updated 30 Dec 2022

Beyond Meat (NASDAQ: BYND) shares are at significant lows, down 81% in 2022, but the stock managed to gain over 9% in Thursday's session after McDonald's (NYSE: MCD) announced it is rolling out the new Double McPlant burger in all of its UK and Ireland restaurants.


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The fast-food giant said it will roll out the burger starting January 4.

They added that the Double McPlant cooked separately from other McDonald's burgers and sandwiches, “using dedicated utensils.”

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YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY

The burger on its own will cost £4.89, while the Double McPlant meal will be £6.49.

The rollout will be around a year after McDonald's made the McPlant Burger available in the UK and Ireland after previously testing the item.

The news will be a welcome boost to Beyond Meat which has struggled since the pandemic, with demand for its products waning as inflation surged.

Earlier this month, Argus analyst Kristina Ruggeri downgraded Beyond Meat to Sell from Hold, telling investors in a research note that demand for Beyond's plant-based protein has declined as a result of weaker economic conditions, with a considerable number of customers trading down to cheaper alternatives.

She added that Beyond Meat has also been hurt by a rise in competition from other plant-based protein makers, as well as by “low utilization” charges and termination fees from co-manufacturers. As a result, Ruggeri expects Beyond Meat to continue posting operating losses in the coming quarters.


YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY.


Sam is a trader and lead stock market writer at AskTraders. After starting his career in the forex market, Sam now focuses on stocks, specifically consumer staples.Â