Beyond Meat’s shares take a hit

McDonald’s Corp. is planning its own line of faux meat, starting with a substitute burger. News of that launch, which will begin tests next year, sent shares of alternative-meat maker Beyond Meat Inc. tanking — until Beyond said it had cocreated the patty.

After the close of markets, Beyond shares took an even steeper dive after the company announced disappointing quarterly earnings results.

McDonald’s declined to confirm the collaboration or comment on its suppliers.

When McDonald’s said its McPlant burgers would be “crafted exclusively for McDonald’s by McDonald’s,” investors interpreted that to mean it wasn’t working with one of the main faux-meat suppliers, such as

Beyond Meat or chief rival Impossible Foods Inc.

McDonald’s said its new McPlant line of products could eventually include plant-based chicken and meat for breakfast sandwiches.

Beyond’s earnings results missed even the lowest of Wall Street forecasts for revenue, hit by a double whammy of eroding restaurant sales and a decline in consumers’ stockpiling of groceries.

Global sales rose 2.7% in the third quarter to $94.4 million, the company said. That compared with the $132.1-million average of analyst estimates compiled by Bloomberg.

The company also reported a net loss of 28 cents a share, after excluding some items. Analysts had projected a profit of 5 cents.

Beyond Meat’s sharp share price drop after McDonald’s announcement sparked a temporary pause in trading. Shares rebounded to close down 4% at $150.50.

In after-hours trading, Beyond Meat shares fell as much as 28%.