A New McDonald’s Product Is Exceeding Sales Expectations
Move over Big Mac, the new kid on the block is making waves with record sales.
This article is more than 2 years old
A Piper Sandler analyst recently revealed McDonald’s McPlant burger (made with meat from Beyond Meat) is receiving accolades from customers. The analyst goes on to say that the new item is more popular than initially projected. In the chain’s initial brief test of the new meatless menu item, each store sold about six dozen plant-based burgers on a daily basis.
In November 2021, the fast-food behemoth kicked off the McPlant burger’s initial testing phase in eight outlets. The goal of initial testing on the new item was to project its impact on existing and future operations. For additional help with meeting consumer demand, the company has decided to expand testing of the McPlant burger on February 14 to around 600 restaurants in the San Francisco Bay and Dallas-Fort Worth areas.
Even though the McPlant isn’t considered a groundbreaking menu change, it’s a perfectly adequate burger to satisfy hunger pains, especially if you’re health-conscious. Think about being out on the road or needing a late-night meatless dinner. With the McPlant, you can slide into McDonald’s all-night drive-thru for a tasty burger that keeps you in line with your diet plans.
In an email to customers on Tuesday, Lavery said that test locations were selling approximately three times as many McPlant burgers as he had predicted. In comparison, a normal McDonald’s outlet sells around 110 Big Macs every day. Despite the limited sample size, Lavery believes that initial interest and willingness to try the product may be higher than anticipated. Receiving widespread consumer welcome for the new menu item would be a success for Beyond. Lavery initially projected that the McPlant would enhance Beyond’s U.S. income by $75 million to $100 million.
In addition to a cash boost from sales to McDonald’s, a statewide debut of the McPlant burger would be a huge opportunity for Beyond to dazzle consumers with its meat substitutes. Analysts on Wall Street have become gloomy about the stock. They claim that the company is struggling with competition and declining supermarket sales in the United States. In premarket trade on Wednesday, shares of Beyond gained over 3%, while those of McDonald’s increased only 1%. Beyond’s stock has dropped 66% in the last year, bringing its market worth down to $3.99 billion. In the same time period, McDonald’s shares rose 17%, boosting its market worth to $195 billion.
A larger-scale test, despite representing only a small portion of McDonald’s 14,000 U.S. locations, is a huge opportunity for Beyond. It gives the brand ample opportunity to dazzle consumers with its meat substitutes. Analysts on Wall Street have become gloomy about the stock. They claim that the company is struggling with competition, as well as facing issues with declining supermarket sales in the United States.
This past December, Beyond Meat hired a Tyson Foods veteran to fill its chief operating officer position. The hiring move was made in anticipation of a broader launch with McDonald’s and other fast-food menu items. In February 2021, McDonald’s and Beyond announced their partnership, stating it would last for at least three years. In several overseas areas, including Sweden, Austria, and the United Kingdom, the burger chain already sells McPlant burgers.
In September 2019, the brand tested a vegetarian burger made with a Beyond patty. The testing took place in more than 36 Canadian restaurants. The item was launched before announcing the McPlant line. By April of the following year, the pilot had come to an end, and the chain has since stated that it has no intentions to bring back its P.L.T. (plant, lettuce, tomato) burger.
