Beyond Meat Drops as McDonald's Plans a McPlant Menu

McDonald's unveiled plans for a menu of plant-based meals, and shares of Beyond Meat, which had partnered with McDonald's, were lower.
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Beyond Meat  (BYND) - Get Report shares were lower on Monday after McDonald's  (MCD) - Get Report said it was developing its own line of plant-based meat products. 

The El Segundo, Calif., producer of plant-based meat produces also is scheduled to report quarterly earnings after the Monday closing bell 

McDonald's, the world's largest fast food chain, said its new plant-based menu would include faux chicken and meat for breakfast sandwiches. The menu items will be sold under the Chicago company's McPlant banner. 

McDonald's had partnered with Beyond Meat for a test run for a plant-based burger in Canada. That test ended April 6 and McDonald's said at the time that it had no plans to bring back the menu item. 

Beyond Meat shares at last check were 7.6% lower at $144.92. 

On Monday, McDonald's posted stronger-than-expected third-quarter earnings as U.S. sales growth offset international weakness and restaurant closures triggered by the resurgence in global coronavirus infections.

McDonald's said diluted earnings came in at $2.35 a share, up 11% from the year-earlier period and ahead of the Wall Street consensus forecast of $1.90 a share. Revenue fell 2% to $5.42 billion, just ahead of analysts' forecasts of a $5.39 billion tally.

Systemwide sales around the world, McDonald's said, were down 1% from a year earlier on a constant-currency basis.

Management told investors on a conference call that it saw mid-single digit-percent growth in 2021 and 2022. 

For the current year, McDonald's said, digital sales are expected to pass $10 billion, or more than fifth of total systemwide sales. 

McDonald's shares dropped 1.4% to $213.51.