McDonald's Says Beyond Meat Burger Test Failed. What Could It Mean for Investors?

It's been a difficult few years for Beyond Meat 's ( BYND -1.90% ) stock, which is down 96% over the past five years, including falling 23% year to date. The company recently received more negative headlines when McDonald's ( MCD -1.

29% ) discussed how two test markets using its plant-based burgers had failed. Let's take a closer look at the news, the issues the company has been facing, and what investors should do with the stock. A lack of demand McDonald's recently came out and said that its test of the McPlant burger, which used patties from Beyond Meat, had failed in its test markets.



The plant-based burgers were being served in about 600 locations in the San Francisco and Dallas-Fort Worth markets. However, the news is more about the headlines, as the fast-food giant was testing the burgers back in 2022. The company noted that there just was not much demand for the burger, even in a more vegetarian market like San Francisco.

While the news will not have any impact on Beyond Meat's sales going forward, it does speak directly to one of the company's biggest problems: Demand for its products is shrinking. This could be seen in its most-recent quarterly results, where volume of Beyond Meat's products sold fell 16% to 16.57 million pounds.

The company sales volumes declined across its segments, with U.S. retail volumes down 10% to 7.

47 million pounds and U.S. food service volumes sinking nearly 21% to 2.

20 million pounds. While the U.S.

market has been a continued struggle fo.