McDonald’s puts Beyond Meat vegan nuggets on French menu

McDonald’s (NYSE:MCD) is expanding its non-meat offerings in Europe with the launch of plant-based McNuggets made by Beyond Meat (NASDAQ:BYND), giving the struggling stock a 5% boost on Friday.

Although meat made with pea protein and covered with wheat and cornflour breading was not a huge hit in the U.S., McDonald’s (MCD) hopes that France’s embrace of the vegetarian/vegan diet will translate into increased sales overseas.

For Beyond Meat (BYND), the introduction of chicken nuggets could provide a shot-in-the-arm for the company, plagued by lackluster sales and a 95% deterioration in its stock price over the last 3 years. While the stock recently enjoyed a significant – albeit brief – rally in August on better-than-expected Q2 results, the company was able to achieve a narrower loss than Wall Street expected on cost-cutting and higher prices rather than on higher sales as U.S. foodservice revenues were down 19% and U.S. retail sales were down 7.5%. Even international sales were down from a year ago.

So, with the French adopting alternative diets, McDonald’s (MCD) is counting on the Veggie McPlant Nuggets to help burnish the fast-food chain’s reputation for fattening, unhealthy food. The new menu option will be offered at all of McDonald’s 1,560 French restaurants on a permanent basis.

In the U.S., however, McDonald’s (MCD) collaboration with Beyond Meat (BYND) was a major disappointment for both companies and was shelved after sales plummeted from around 500 burgers sold per week to less than 20 per day.

“I don’t think the U.S. consumer is coming to McDonald’s or looking for McPlant or other plant-based proteins now,” McDonald’s USA president Joe Erlinger said at the time. Although the price of the McPlant might have been a deterrent, a plant-based hamburger did not appeal to McDonald’s (MCD) core customer.

Europeans, however, were more enthusiastic about healthier options. The success of the McPlant in the UK and Ireland encouraged the company to expand the menu option to a double McPlant and other varieties in the Netherlands.

With the Veggie McPlant Nuggets, McDonald’s (MCD) and Beyond Meat hope that by introducing a vegan-approved menu option (with no dairy or eggs), the company can lure in French consumers looking for fast food alternatives.