Beyond Meat stock falls after conclusion of McDonald’s McPlant test

Advertising for the McPlant burger, a plant based vegetarian alternative to more traditional meat burgers by fast food giant McDonalds on 11th July 2022 in London, United Kingdom.

McDonald's ended its U.S. test of the McPlant burger, which used Beyond's meatless patties.

The McPlant test concluded as planned, according to the fast food giant. There are no plans for Beyond Meat or McDonald's to launch a nationwide launch.

The stock price of Beyond has fallen by more than half this year. As grocery sales lag, Wall Street has become less optimistic about the company's long-term growth opportunities. Pizza Hut and McDonald's have partnerships that haven't progressed to a permanent nationwide menu.

McDonald's tested the meat-free burger in eight restaurants in the U.S. in November to see how it would affect its kitchens. The McPlant was rolled out to 600 locations in February to learn more about consumer demand.

Demand for the Beyond burger was low. McPlant sales were disappointing, coming in at or below the low end of projections, according to franchisees. Some McDonald's restaurant employees told Ken Goldman that the burger didn't sell well enough, potentially putting a nationwide launch in jeopardy.

The consensus expects BYND's total top line to grow by 21% this year and another 25% next year. Without McDonald's in the US, these rates will be hard to hit.

McDonald's and Beyond will work together for three years. Beyond Meat's CEO said in May that the McPlant is selling well in the U.K.

The second-quarter earnings are expected to be reported after the bell on August 4.