McDonald's became the latest chain to not go through with broader launch of Beyond Meat products
Beyond Meat Inc. is headed for an underwhelming second quarter as the plant-based food hype withers. Analysts have slashed forecasts for Beyond Meat's sales on supply-chain concerns and the decreasing demand that pulled down shares of the plant-based meat maker. Difficulty in changing the cultural tastes of consumers is one of the main issues with the adoption of plant-based vegan options. John Baumgartner, an analyst, said. "Recruiting their next phase of consumers requires more innovation and better-tasting products." According to Refinitive IBES data, Estimates for Beyond Meat's second-quarter revenue have fallen by 10% over the last three months. McDonald's Corp became the latest chain to not go through with an immediate broader launch of Beyond Meat products after concluding its U.S. test of a burger made with plant-based meat without confirming future plans.
Tests at Panda Express and Yum Brands Inc's KFC, Pizza Hut, and Taco Bell have also yet to lead to a permanent or U.S.-wide launch, while Dunkin, Hardee's, and A&W have discontinued products after launching, according to brokerage Piper Sandler. Reviews for Beyond Meat's plant-based jerky also indicate skepticism about the taste of the product, stoking concerns about the sustainability of its sales momentum, Piper Sandler analyst Michael Lavery wrote in a note on Friday.