Beyond Meat launching burger with McDonalds 🌱

This doesn’t surprise me much to be honest, McDonalds are always pretty forward thinking - I’m more surprised that Burger King beat them to it here.

HL has some good analysis of this too -

  • McDonald’s CEO questioned this year whether plant-based meat was “worth embracing” at scale, given the risk of it being a fad and the added complexity for its kitchens.

  • Analysts Jefferies estimated Beyond Meat could generate an extra $ 48 million in sales if it captured just 1% of McDonald’s annual US beef sales, and $285 million if it snagged a 6% share.

  • Rival Impossible Foods has struggled to meet demand, meaning it might struggle to satisfy McDonald’s supply needs.

  • Burger King launched Impossible Whoppers nationwide, piling pressure on McDonald’s to match its archrival.

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Put it on a grill that hasn’t had meat on. It’s not really that complex…

I’d definitely try one at McDonalds

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My first thought is that this would be margin-dilutive assuming pricing will be broadly in line with other burgers

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But potential revenue uplift at the same time?

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Impossible Foods is apparently getting near to half Beyond Meat’s valuation with their next funding round or well over BM’s valuation of $1.46 billion when they IPOd. They must be keen to go public and see whether the markets decide to triple their valuation too..

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Bit of a strange one, the new Burger King plant based burger is cooked on the same grill as meat so it’s not suitable for vegetarians. I wonder how many will just assume that it’s suitable for vegetarians and eat it anyway.

Impossible Foods just launched their pork substitute (Beyond Meat offers one already), at CES.

There’s an interesting point in this story about China’s demand for meat and the impact of the recent virus that’s killed millions of pigs there. Presumably this sort of issue could increase demand for meat substitutes in the future, although (hopefully) only for the short term.

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Beyond Meat saw a big 12.4% increase yesterday, surprising after the pork launch by Impossible Foods, turns out there was a silver lining.

https://www.bloomberg.com/news/articles/2020-01-07/beyond-meat-gains-on-report-rival-won-t-seek-mcdonald-s-deal

Impossible Foods is no longer chasing a partnership with McDonalds.

[Impossible Foods] wouldn’t be able to produce enough supply for such a big partnership

The CEO of Impossible Foods clarified his comments where taken out of context, and they are open to all partnerships and never want to close a door.

A small boon for Beyond Meat but they are a long way off their all time high.

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