Burger chain McDonald's Corp has decided to debut a line of plant-based meat alternatives n the US called "McPlant" in 2021, including a patty Beyond Meat subsequently said it helped co-create.
"Beyond Meat and McDonald's co-created the plant patty which will be available as part of their McPlant platform," a Beyond Meat spokesperson said on Monday.
Shares of Beyond Meat initially fell 8 per cent after McDonald's announcement but recovered to end 4 per cent lower after the plant-based meat company said it had a role in creating the McPlant patty.
McDonald's, which reported market-beating profit and revenue for the third quarter earlier in the day, declined to say which suppliers it would use in crafting its own line of veggie products.
Beyond Meat was the front runner as it had conducted tests of a so-called "P.L.T." burger at nearly 100 McDonald's locations in Ontario, Canada, earlier this year.
"Plant-based products are an ongoing consumer trend. It's not a matter of if McDonald's will get into plant-based, it's a matter of when," McDonald's Chief Executive Officer Chris Kempczinski said.
Analysts, rival fast food companies and plant-based protein producers have been closely watching McDonald's plans as it is one of the few national chains yet to sell plant-based meat burgers on a permanent basis.
While other chains have started offering plant-based meat options, including Restaurant Brands International Inc's Burger King, White Castle and Dunkin' Brands Group Inc , a McDonald's contract could be the biggest and would put the plant-based meat movement front and centre.
McDonald's said under its McPlant line, it could offer products including burgers, chicken substitutes and breakfast sandwiches, which it expects to test in 2021.
Australian Associated Press