Beyond Meat Stocks Drop After McDonald’s Ends Canadian Meatless Burger Trial

The “PLT” sandwich is ready for a photo at a McDonald’s Corp. restaurant in London, Ontario, Canada on Wednesday January 8, 2020.

Cole Burton | Bloomberg | fake pictures

Beyond Meat’s shares fell 7% in the morning trade after the CBC reported that McDonald’s stopped trying a hamburger made with its empanadas in Canada.

In a tweet to a consumer asking about the burger, McDonald’s Canada said the trial ended on April 6. The chain has no plans to return the item at this time.

McDonald’s shares traded down 1%

“We can only comment generally and share that we are satisfied with the test,” a Beyond spokesperson said in a statement to CNBC.

Beyond Meat CEO Ethan Brown told analysts in early May that the test ended “without any negative reason.”

“I mean, we feel great about our relationship with McDonald’s. And what is going to be happening both there and potentially elsewhere,” Brown said. “So because it was a test, it had a beginning and an end.”

In September, McDonald’s joined the drive for more meat alternatives in North America when it began testing the meatless PLT burger in southwestern Ontario. The trial expanded to 24 other locations in January for a 12-week trial.

Other McDonald’s international markets have been more successful with meatless burgers. Restaurants in Germany, for example, have added Nestlé-made veggie burgers to their menus.

In the United States, McDonald’s has yet to try a vegan burger. The coronavirus pandemic prompted the chain to temporarily streamline its menus and delay product launches, including a new chicken sandwich.

Rival Burger King has been serving an Impossible Whopper across the country for almost a year. The international chain Restaurant Brands recently announced that it will add a meatless breakfast sandwich to national menus.

Beyond shares, which have a market value of $ 8.9 billion, have increased nearly 84% so far this year. Shares of McDonald’s, which has a market value of $ 140 billion, have fallen 8% in 2020.

McDonald’s did not immediately respond to a request for comment.