McDonald's could sell over 250 million Beyond Meat burgers in U.S. annually - UBS
(Reuters) - McDonald's Corp is selling only 20-30 plant-based Beyond Meat burgers per day in Canadian restaurant testing, although sales are reaching 100 burgers a day in more densely populated areas in the country, industry checks by UBS showed. In its detailed checks on the tests, which are the first to be made public, the Swiss investment bank said the numbers implied the world's biggest fast-food chain could eventually sell more than 250 million P.L.T.
(Reuters) - McDonald's Corp
In its detailed checks on the tests, which are the first to be made public, the Swiss investment bank said the numbers implied the world's biggest fast-food chain could eventually sell more than 250 million P.L.T. burgers annually if it rolled out the product across its nearly 14,000 U.S. outlets.
That would add up to $325 million in sales annually for Beyond Meat from the partnership, UBS said, although it cautioned that McDonald's traditionally sources each of its burger patties from more than one supplier.
"We believe Beyond Meat has a first-mover advantage - for now - but it appears a door remains open for McDonald's to refine its P.L.T. offering before introducing a plant based patty in the United States," analyst Steven Strycula wrote.
"Further, we do not know whether MCD plans to single-source or multi-source a U.S. menu item."
McDonald's in September became one of the last big fast-food chains to begin tryouts of a plant-based sandwich, launching tests at 28 restaurants in southwestern Ontario.
Analysts and industry consultants, however, have raised questions as to whether the popularity of the plant-based meat burgers is sustainable and whether sales will reach commercially viable levels needed to stay on the menu.
Some estimate a McDonald's franchise would need to sell 300-400 of the burgers a week for it to be viable. The company has given no indication of its attitude to a national launch or how the tests are going.
Separate checks by UBS with Burger King
UBS said the same Burger King restaurants were selling about 230 of the chain's signature beef Whopper burgers a day and that those sales had not fallen as a result of the introduction of the plant-based meat alternative.
For Impossible Foods, the Burger King tie-up could fetch about $135 million in annual sales, the bank calculated.
(Reporting by Nivedita Balu and Tanvi Mehta in Bengaluru; editing by Patrick Graham)
This story has not been edited by Firstpost staff and is generated by auto-feed.
By Robin Emmott and John Irish | BRUSSELS/PARIS BRUSSELS/PARIS France and Germany will agree to a U.S. plan for NATO to take a bigger role in the fight against Islamic militants at a meeting with President Donald Trump on Thursday, but insist the move is purely symbolic, four senior European diplomats said.The decision to allow the North Atlantic Treaty Organization to join the coalition against Islamic State in Syria and Iraq follows weeks of pressure on the two allies, who are wary of NATO confronting Russia in Syria and of alienating Arab countries who see NATO as pushing a pro-Western agenda."NATO as an institution will join the coalition," said one senior diplomat involved in the discussions. "The question is whether this just a symbolic gesture to the United States
BEIJING Chinese President Xi Jinping on Wednesday called for greater efforts to make the country's navy a world class one, strong in operations on, below and above the surface, as it steps up its ability to project power far from its shores.China's navy has taken an increasingly prominent role in recent months, with a rising star admiral taking command, its first aircraft carrier sailing around self-ruled Taiwan and a new aircraft carrier launched last month.With President Donald Trump promising a US shipbuilding spree and unnerving Beijing with his unpredictable approach on hot button issues including Taiwan and the South and East China Seas, China is pushing to narrow the gap with the U.S. Navy.Inspecting navy headquarters, Xi said the navy should "aim for the top ranks in the world", the Defence Ministry said in a statement about his visit."Building a strong and modern navy is an important mark of a top ranking global military," the ministry paraphrased Xi as saying.