Beyond Meat (NASDAQ: BYND) shares surged by over 15% during Thursday’s pre-market hours after McDonald’s (NYSE: MCD) announced that it will conduct a 12-week test of a new plant-based burger in Canada.
The burger, P.L.T. or Plant. Lettuce. Tomato will be available in 28 restaurants throughout the Southwestern part of Ontario starting on September 30. The P.L.T. is made with a Beyond Meat plant-based burger patty that has been exclusively created for McDonald’s. The burger will cost CAD 6.49 including tax.
“McDonald’s has a proud legacy of fun, delicious and craveable food—and now, we’re extending that to a test of a juicy, plant-based burger,” said Ann Wahlgren, McDonald’s VP of Global Menu Strategy. “We’ve been working on our recipe and now we’re ready to hear feedback from our customers.”
McDonald’s now joins other fast food chains that have already moved towards adding plant-based alternatives for consumers. U.S. chains such as Dunkin’ (NASDAQ: DNKN), Red Robin (NASDAQ: RRGB), and Restaurant Brands’ (NYSE: QSR) Burger King have all added a plant-based protein onto their menus.
McDonald’s already sells plant-based burgers in Germany and Israel through a partnership with Nestle.
Based on the testing, Wahlgren will examine the demand for the plant-based burgers at the select Canada locations. Eventually, McDonald’s could look to launch the P.L.T. across locations throughout the U.S. or other international markets.
McDonald’s test run is only available in limited locations, however, if the Company decides to launch a full-scale plant-based burger menu, Beyond Meat would be tasked with supplying tens of thousands of restaurants. Nonetheless, Beyond Meat Chief Executive Officer Ethan Brown has mentioned that the Company could supply any chain restaurant.