Over 250M Beyond Meat Burgers May Be Sold By McDonald’s In US Annually – UBS

According to a report from the UBS about the fast food industry in the United States, currently only about 20-30 plant-based Beyond Meat burgers per day is being sold by McDonald’s Corp in its testing for the vegan burger in restaurants in Canada. The report however also said that the number is touching about 100 burgers a day in those areas of the country that are more densely populated.

According to the conclusion of the report that was filed by the Swiss investment bank, it is possible that the world’s biggest fast-food chain could end up selling more than 250 million P.L.T. burgers annually if the fast food chain were to roll out the burger at all of its almost 14,000 stores.

UBS said that the sale number of that magnitude would end up generating revenues of up to $325 million every year form the partnership with Beyond Meat. However the report also pointed out that traditionally, McDonald’s uses patties from multiple sources for each of its burgers.

“We believe Beyond Meat has a first-mover advantage – for now – but it appears a door remains open for McDonald’s to refine its P.L.T. offering before introducing a plant based patty in the United States,” analyst Steven Strycula wrote.

“Further, we do not know whether MCD plans to single-source or multi-source a U.S. menu item.”

In September this year, McDonald’s joined the list of top fast food chains in the world to try out a plant-based sandwich with patties form one or the other companies that manufacture such patties from plant based alternative meat. McDonald’s started off the campaign by launching the burger in 28 restaurants in southwestern Ontario as test cases.

Questions however have been raised by analysts and market experts about whether the current demand among customers for such plant based meat burgers be sustainable over the long terms and whether the actual sale of these alternative meat based products will be large enough for the companies to retain them on their menu.

According to estimates by some analysts, anything between 300 and 400 of the burgers will have to be sold by each of the McDonald’s franchise in the US to make the product a viable one and to retain it on the menu. McDonald’s on its part is yet to be given any indications about launching the plant based meat across the US or about the outcome of the tests being carried out in Canada.

UBS also conducted separate examination of the how the sale of alternative plant based burgers of McDonald’s rival Burger King was going, which is in a partnership with Beyond Meat rival Impossible Foods, and found that it the rival fast food chain was selling about bout about 40 Impossible Whoppers daily at each of the 350 locations it was being offered. That amounted to about sale of 107 million the product a year if the chain launched the product all over the US.

(Adapted from Reuters.com)

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