Beyond Meat is going way beyond the health food aisle. The plant-based meat maker has signed deals to supply two of the world’s largest fast-food operators, McDonald’s and Yum! Brands.
Its three-year global deal will make it McDonald’s preferred supplier for the patty in its new McPlant burger. It will also help the world’s largest restaurant chain develop other menu items like plant-based chicken, pork and eggs.
Beyond Meat also plans to create products over the next few years with Yum! for its KFC, Pizza Hut and Taco Bell restaurants.
News of the deal sent its shares up 1% in early trading Friday. It’s likely, however, that its arch-rival, Impossible Foods, and other competitors still have a shot at working with the two fast-food operators because McDonald’s and Yum! typically work with multiple suppliers.
The deals couldn’t come at a better time. Beyond Meat’s business of serving restaurants has been hit as people stay at home amid the health crisis. Its loss widened in the latest quarter, and its sales disappointed analysts.