After an apparently positive test of Beyond Meat burgers at McDonalds outlets early this year, the fast-food chain announced Monday (Nov. 9) it will more widely test-launch the McPlant sandwich next year. So why was that bad news for Beyond Meat? Why did the plant protein companys stock dro 28% on Tuesday?

Analysts and other observers noticed the conspicuous absence of Beyond Meats name in McDonalds Monday investor call. There were other hints that McD wants to own the sourcing and the formulation of the McPlant.

Also, in its third-quarter report, Beyond Meat reported a loss of $19 million with sales increasing only 2.7% versus the year-ago period, both of which unpleasantly surprised analysts. The company said the poor performance was the result of the impacts from the COVID-19 pandemic that it hadnt yet felt in previous quarters. The stock price was $162 a share on Monday, dipped below $117 on Tuesday before settling at about $125 since.

Beyond Meat went public in May 2019 at $25 a share.

In a statement carried by MSN Money/MarketWatch, Beyond Meat said it “co-created” the McPlant. CEO Ethan Brown added, “Our relation with McDonald’s is good. It’s really strong. Our work there on behalf of what they’re doing continues.”

McDonalds didnt elaborate on sourcing for its McPlant. It remains to be seen whether the food chain is just downplaying the Beyond Burger branding or becoming a competitor.

Beyond Meat did reveal a deal Tuesday that Pizza Hut will use Beyonds plant-based Italian sausage alternative.