KFC
- KFC announced Monday that it will begin testing a plant-based fried "chicken" product with Beyond Meat in one location in Atlanta, Georgia.
- Shares of Beyond Meat rose as much as 6% on the news.
- KFC is the latest fast-food chain to team up with Beyond Meat.
- Watch shares of Beyond Meat trade live on Markets Insider.
Beyond Meat just secured a partnership with KFC, adding plant-based fried "chicken" to its list of items available on fast-food menus.
Shares of Beyond Meat gained as much as 6% in early trading Monday after KFC announced that it is testing plant-based fried "chicken" made with Beyond Meat in some stores. The faux-meat chicken will be available only in one store in Atlanta, Georgia, starting on Tuesday, the company said.
KFC will decide whether to bring the new menu item to other locations following customer feedback from the test, it said. The chain has already tested vegetarian fried "chicken" in the UK, according to Fortune.
The CEO of KFC, Kevin Hochman, wasn’t always on board with plant-based meat, Business Insider’s Kate Taylor reports. However, he said that if the buzz continues to grow into long-term customer demand, KFC will have to test a plant-based product across the US.
The partnership is the latest in a string of high-profile food industry pair-ups for Beyond Meat, which also has deals with Del Taco, A&W Canada, Dunkin’, and Tim Hortons.
These partnerships are a big deal for the company going forward, according to Wall Street analysts. Ken Goldman at JPMorgan gave Beyond an elusive ‘buy’ rating, citing its potential for more opportunities with food service partners. Having its product in restaurants helps Beyond Meat’s sales, Goldman wrote, and makes it possible that Beyond will continue to beat its sales estimates going forward.
Expanding outside of burgers and sausage patties is also positive for Beyond Meat, which aims to compete with the traditional meat market and not only make food for vegetarians or vegans. Sales data from Nielsen show that so far, consumers are purchasing the plant-based products in droves and are even willing to pay higher prices than traditional meat.
Shares of Beyond Meat are up more than 500% since the company’s initial public offering in May.
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Source: Business Insider – feedback@businessinsider.com (Carmen Reinicke)