McDonald’s goes meatless in Ontario burger test

October 8, 2019

McDonald’s has been standing on the sidelines of the meatless hamburger wars, but joined the fray this month with the test of a plant-based burger in several southwestern Ontario communities.

Rival Burger King rolled out a meatless whopper in August, while Tim Hortons, also part of the Restaurant Brands International (TSX: QSR) family, abandoned  its BeyondMeat burger in September just three months after introducing it.

The McDonald’s sandwich was developed at its global headquarters in Chicago, with the Canadian operation responsible for the 12-week test. Southwestern Ontario was picked because the demographics are a stand for “every town” North America.

The dilemma for fast food chains is whether meatless burgers are a fad or a trend. On the one hand they appeal to healthier lifestyles and food choices. But there is better vegetarian fare elsewhere and some vegetarians won’t eat the meat-free burgers because they are cooked on the same grill as chicken and beef. (Burger King customers can request that their Impossible be cooed separately).

The meat eaters, on the other hand, might be doing more healthy eating, but you go to McDonald’s for a burger and fries, not a salad and to pay more for a meatless patty.

McDonald’s is calling the product a PLT — plant, lettuce and tomato,  which comes with pickles, onions, cheese, mustard, ketchup and a mayo-style sauce. It will cost a little more than a Quarter Pounder at $6.49 plus tax.

McDonalds decision to wait so long indicates its uncertainty. It has experience with meatless options in India which include a Veg Maharaja Big Mac and a Salsa Bean burger. But these products address core values in a country with a high proportion of vegetarians and strictures against eating beef.

McDonald’s caution is a sign of its business savvy. While keen to adapt to new food trends, it is taking the time to get it right. As Tim Hortons showed, the companies and products first out of the gate aren’t necessarily the ones that stay the course.

 

McDonald’s is a top holding of the  Harvest Brand Leaders Plus Income ETF (TSX: HBF, HBF.U).

As of September 30, 2019, the ETF held 20 global brand leaders who are the dividend elite, with an average dividend yield of 2.00%. The ETF pays a monthly distribution and are payable as cash or through a Distribution Reinvestment Plan (DRIP). The ETF’s management fee is 0.75%.

For more on Harvest Portfolios Group Inc. and  Harvest ETF’s click here.

The views and/or opinions expressed in the blog are of a general nature and are for informational purposes only. Blog contents should not be considered as advice and/or a recommendation to purchase or sell the mentioned securities or used to engage in personal investment strategies. Investors should consult their investment advisor before making any investment decision.

You may also like…

Disclaimer

You will usually pay brokerage fees to your dealer if you purchase or sell units of the Fund(s) on the TSX. If the units are purchased or sold on the TSX, investors may pay more than the current net asset value when buying units of the Fund(s) and may receive less than the current net asset value when selling them. There are ongoing fees and expenses associated with owning units of an investment fund. Investment funds are not guaranteed, their values change frequently and past performance may not be repeated. An investment fund must prepare disclosure documents that contain key information about the fund. You can find more detailed information about the fund in these documents.

Certain statements in the Harvest Blog are forward looking Forward-looking statements (“FLS”) are statements that are predictive in nature, depend upon or refer to future events or conditions, or that include words such as “may,” “will,” “should,” “could,” “expect,” “anticipate,” “intend,” “plan,” “believe,” or  “estimate,” or other similar expressions. Statements that look forward in time or include anything other than historical information are subject to risks and uncertainties, and actual results, actions or events could differ materially from those set forth in the FLS.

FLS are not guarantees of future performance and are by their nature based on numerous assumptions, which include, amongst other things, that (i) the Fund can attract and maintain investors and have sufficient capital under management to effect their investment strategies, (ii) the investment strategies will produce the results intended by the portfolio managers, and (iii) the markets will react and perform in a manner consistent with the investment strategies. Although the FLS contained herein are based upon what the portfolio manager believe to be reasonable assumptions, the portfolio manager cannot assure that actual results will be consistent with these FLS.

Unless required by applicable law, Harvest Portfolios Group Inc. does not undertake, and specifically disclaim, any intention or obligation to update or revise any FLS, whether as a result of new information, future events or otherwise.

Subscribe to our newsletter and stay informed

Join Us & Stay Informed!

* indicates required

Your Preferences   (Please select all the ways you would like to hear from)


You are a *


Confirm *