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Why Disney Chose Impossible Foods Over Beyond Meat

By Rich Duprey – Feb 25, 2020 at 12:08PM

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And it matters. Hundreds of millions of guests visit Disney theme parks every year.

It's a big world after all for faux meat maker Impossible Foods, which just announced Disney (DIS -2.60%) had selected its meat alternatives as the "preferred" plant-based burger for its menus.

This doesn't automatically mean restaurant chefs at Walt Disney World, Disneyland, or on Disney Cruise Lines have to serve the burgers, but the designation gives it a massive platform and is surely a blow to rival Beyond Meat (BYND 2.88%).

A cheeseburger with everything on it

Image source: Getty Images.

Beefing up theme park menus

There are over 460 eateries across all of Disney's U.S. properties and cruise ships, though not every one of them would be a venue to serve burgers. It still represents a huge opportunity for Impossible Foods to get its burgers in front of the hundreds of millions of new potential customers who visit Disney every year.

The theme park operator announced its intention to add plant-based meat alternatives in a company blog post last year, noting "Our guests have embraced our plant-based offerings at our parks around the globe." The items will be identified with a new leaf logo.

On Tuesday, CNN Business quoted Disneyland's Head Chef John State like the Impossible Burger's flexbility, saying, "It certainly has all the components we're looking for when it comes to flavor [and] texture. It's a big game changer."

Restaurants and foodservice outlets have become the focus of Impossible Foods and Beyond Meat's growth ambitions. Several fast food chains such as Burger King and Red Robin offer the Impossible Burger on their menus.

 

Rich Duprey has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Walt Disney and recommends the following options: long January 2021 $60 calls on Walt Disney and short April 2020 $135 calls on Walt Disney. The Motley Fool has a disclosure policy.

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Stocks Mentioned

The Walt Disney Company Stock Quote
The Walt Disney Company
DIS
$99.50 (-2.60%) $-2.66
Red Robin Gourmet Burgers, Inc. Stock Quote
Red Robin Gourmet Burgers, Inc.
RRGB
$6.46 (-4.01%) $0.27
Beyond Meat Stock Quote
Beyond Meat
BYND
$15.69 (2.88%) $0.44

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