Beyond Meat investors reacted negatively when the meatless food company was not named as a supplier for McDonald’s “McPlant” burgers, sending the stock down near double-digit numbers from its lows on Monday.
The stock made up much of those losses after Beyond hinted it was behind the product line, although judgment is pending and Brown is backtracking on that proposal.
“I think our relationship with McDonald’s is very close. We work with McDonald’s on different fronts. We’re doing things now to prepare for future things that affect McDonald’s,” he told CNBC’s Jim Cramer.Bad money. “” I just can’t go out and speak for the company about which supplier they have chosen or who they will be working with. “
McDonald’s plans to test a meat-free burger in select restaurants next year to add plant-based foods to its menu. The McPlant brand could also contain chicken substitutes in the future, but the company didn’t say who it would work with on the products.
In the third quarter of last year, the Golden Arches in Canada began testing a plant-based burger with Beyond Meat patties. McDonald’s stopped the project in April 2020 and has not announced any plans to revive the burger. Former McDonald’s CEO Don Thompson is a board member of Beyond Meat.
Investors who sold the stock feared that McDonald’s could compete with Beyond Meat instead of offering the company a huge growth opportunity. said an analyst.
In an interview with Brown, Cramer asked the CEO about the possibility that McDonald’s could source its alternative meat products from Tyson Foods or Nestle, the maker of the Awesome Burger.
“All I see you know, all the investments we’re making here, the scaling we’re making here, suggests the relationship is really strong there and that’s really all I can say” said Brown. “The key for us is not to be ahead of these partners. Let’s let them make the announcements.”
Elsewhere in the restaurant area, Pizza Hut, a Yum Brands Property, it said began marketing plant-based sausage products provided in the US by Beyond Meat. The company had previously tested a product with substitutes from Kellogg.
Beyond Meat also supplies Subway, KFC and Taco Bell in China, Brown emphasized. The company also has products in grocery stores such as Walmart and whole foods.
Beyond’s shares lost nearly 17% on Tuesday after the company released a disappointing earnings report after the bell on Monday that restaurant demand for plant-based foods declined in the third quarter.
Brown linked it to the unpredictability of the coronavirus pandemic.
“I am very optimistic about the future,” he said.
Despite two big days of losses, Beyond stocks remain up 65% year-to-date, closing Tuesday’s session at $ 125.01.