I would think this was less correlated as it’s only a contract for supply.
In any case McDonalds isn’t selling a co-branded Beyond Meat product, they’re selling the McPlant. Beyond Meat’s moat looks very shaky here.
It seems likely that Beyond Meat is only getting these contracts as it’s a relatively cheap way for McDonalds to test the substitute market before producing their own alternatives. It makes no business sense for them to hand over the core of their product to BM when it’s likely they can create something similar in-house.
Both of those are Yum brands, so it is really a single deal. Looks like you have one deal that is branded but chicken and pizza places are not going to drive a huge amount of visibility into the segment that Beyond wants (cheap burgers) and I suspect previous comment is correct regarding McD wanting to test the waters while they work on their own solution.
Not sure what you mean by "vertically integrated" they do not own cattle ranches or potato farms. They buy Heinz or Hunts catsup, etc. They do have a lot of proprietary recipes and process, but the ingredients are mostly sourced from other wholesale producers.
Can they create something similar in-house? Beyond and particularly Impossible appear to be far ahead of the competition in meat substitutes, and presumably they each have close to 20yr left on their patents. It doesn't look so easy to rival the leaders in this space.
Exactly, and Beyond Meat is only the "preferred supplier". BM probably has to meet quantity and price targets or they are done. Good luck building up big profit margins.
In any case McDonalds isn’t selling a co-branded Beyond Meat product, they’re selling the McPlant. Beyond Meat’s moat looks very shaky here.
It seems likely that Beyond Meat is only getting these contracts as it’s a relatively cheap way for McDonalds to test the substitute market before producing their own alternatives. It makes no business sense for them to hand over the core of their product to BM when it’s likely they can create something similar in-house.