Barron’s reports that McDonald’s announcement of an initiative to create a plant-based “alternative-meat” burger has crippled Beyond Meat’s stock price.
Beyond Meat Stock Tumbles 20% Over Past Two Days
The stock first dropped after McDonald’s (MCD) announced that it was getting into the alternative-meat game. The McPlant line of meat alternatives will launch next year, starting with a plant-based burger.
Next came Beyond Meat’s third-quarter results on Monday evening. The company missed Wall Street estimates by a mile. Sales were almost a third below consensus, and Beyond Meat lost money when it was expected to show a profit.
Management blamed the pandemic for the poor performance. Customers stocked up in the second quarter, then ate what they had in the freezer instead of buying new plant-based patties in the third quarter. And many of Beyond Meat’s restaurant clients are still dealing with government restrictions and other challenges.