The McDonald’s McPlant burger underwhelmed in tests in San Francisco and Dallas, making a national rollout by the end of the year unlikely, BTIG analysts wrote.
“The modest-to-underwhelming performance of McPlant in the two test markets … suggests broad appeal of a plant-based burger at McDonald’s isn’t there yet,” they said, calling sales in the markets “disappointing.”
Fewer than 20 of the plant-based sandwiches sold per day per restaurant in the Fort Worth and San Francisco markets, with restaurants in more rural areas of Texas selling only three to five each day, during the trial period that began on February 14.
Comparatively, the McPlant burger sold well in a small-scale trial last fall, with 70 sandwiches sold per day in eight restaurant locations in Irving and Carrollton, Texas, Cedar Falls, Iowa, Jennings and Lake Charles, Louisiana and El Segundo and Manhattan Beach, California.
“Given this development, coupled with slowing category sales and declining selling price, we believe management's sales guidance and our initial estimates were just too high,” the analysts continued.
In an October 2021 earnings call, McDonald’s CEO Chris Kempczinski acknowledged that it could be a while before the McPlant burger is rolled out nationally.
“As always, we’ll do what McDonald’s does best: Listen to our customers,” he said. “When people are ready for the McPlant, we will be ready for them.”
Created in conjunction with Beyond Meat, the McPlant Burger is made from plant-based ingredients like peas, rice and potatoes. The plant-based patty is served on a sesame seed bun with tomato, lettuce, pickles, onions, mayonnaise, ketchup, mustard and a slice of American cheese. The burger is cooked on the same grill as the chain’s beef burgers, which could be an issue for those following a vegan diet.
Shares of Beyond Meat fell 4% following the report from BTIG analysts.
