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Impossible Foods’ McDonald’s Loss is Beyond Meats’ Gain

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The stock market is home to scores of different companies and industry sectors. Sometimes, the market sees unexpected changes in a stock that few likely chose to watch. Such is the case right now with Beyond Meat. The company’s better-known competitor, Impossible Foods, walked away from discussions with McDonald’s. Beyond Meat, however, gained a boost from McDonald’s after entering into a test-run deal. Beyond Meat’s stock moved upwards in dramatic fashion once the news broke. A 12.5% increase saw the stock price jump to $83.89 per share.

Impossible Foods found itself in a difficult position. The company, at present, finds itself unable to meet McDonald’s supply demands. So, the company walked away from negotiations. Beyond Meat might gain big from Impossible Food’s departure.

McDonald’s green-lighted a test run for Beyond Meat in Canada. The fast-food giant will test the product in 28 restaurants. If things work out for Beyond Meat, the company could see its profile and fortunes dramatically increased.

Burger King decided to test the Impossible Sausage in breakfast sandwiches in select markets. The decision hasn’t garnered the buzz of Beyond Meat’s McDonald’s deal, as the “Golden Arches” maintains a much higher profile than its rival does.

Meatless products refer to plant-based replacements for beef and more. The general public is now becoming more aware of such products, although they’ve been around for years and years. Original versions didn’t perfect the mimicked taste. So, traditional beef and pork buyers didn’t gravitate in large numbers to these alternate selections. Impossible Foods and its Impossible Burger received excellent reviews, so many consumers opted to give it a try. Doing so is easier now since meatless products appear in more and more restaurants. Easier access changes public opinion. So does “credibility lending.” When McDonald’s stamps its approval on meatless food alternatives, more people may see the product as worth trying. One company lending its brand credibility to another could have an effect.

Impossible Foods could experience increased profits and valuation later in the year. The company intends to debut meatless pork and sausage and promote the new releases worldwide. Plant-based pork could prove a hit in China where pork consumption is massive. China’s vast market, of course, represents home to untold millions of potential customers. Whether the consumer public takes to Impossible Food’s offerings remains to be seen.

Beyond Meat is a publicly-traded company. Impossible Foods, however, has made no decisions to go public, yet.

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