How the McPlant burger “saved” McDonalds investors

If you’d bought £1,000 of McDonald’s shares when the McPlant burger was released, you’d have £1,160 now from your investment.

In November 2021, McDonald’s (NYSE: MCD) introduced the McPlant burger, its first plant-based offering, to the U.S. market. At the time, we wrote:

“McDonald’s (MCD) share price climbed to new record highs as it introduces a new vegan burger, the McPlant, in the US this week. In recent years, there has been an ongoing consumer shift to vegan products. One reason is that consumers are becoming more health conscious. Greggs (LON: GRG) launched its vegan sausage roll in 2019 and immediately led to a double-digit rise in sales that year.”

The launch followed the footsteps of competitors such as Burger King, whose Impossible Whopper gained traction with customers. “To keep up with the consumer trend and competition, McDonald’s launches the plant-based burger which is produced by Beyond Meat (BYND), a company that specialises in plant-based meat.”

At the time, McDonald’s shares had closed at an all-time high of $250.40, and our analysis pointed to further potential gains.

We noted that “Trendwise, the consumer giant remains long-term bullish. If prices manage to overcome the $250 level, the next upside target is pencilled at $260-265.” However, we also flagged potential consolidation: “The fact that McDonald’s has [not] had any meaningful correction since March 2021 means that a consolidation may happen soon, especially if the market goes ‘risk off’ on the new Fed tapering schedule. However, any consolidation is likely to be viewed as a buying opportunity.”

Fast forward to 2025, how did McDonald’s shares perform since the McPlant launch? If you had invested £1,000 (approximately $1,350 at the time) in McDonald’s shares when the McPlant burger was introduced, you’d now see significant gains. As of January 2025, McDonald’s share price has risen to around $290, marking a nearly 16% increase from November 2021. Including dividends, your total return would be even higher.

The success of McDonald’s since the McPlant launch can be attributed to several factors. The company continued to innovate its menu to meet changing consumer preferences, expanded globally, and capitalized on digital ordering trends. Additionally, its strong dividend payout, which we highlighted in 2021 as “a 2% yield valued by many investors,” has remained an attractive feature for long-term shareholders.

While our prediction of a potential pullback did not fully materialize, our bullish outlook on McDonald’s proved accurate. As we stated “McDonald’s has weathered the pandemic really well. While its stores were closed in the early stages of the pandemic, by the second half of 2020, most gradually opened. Sales rebounded.”

The McPlant burger itself played a supporting role in McDonald’s broader strategy rather than a primary driver of revenue. However, it demonstrated the company’s ability to adapt to emerging trends, reinforcing investor confidence.

In conclusion, McDonald’s has continued its upward trajectory, delivering strong returns for investors who bought in during the McPlant launch. As always, long-term investment strategies focusing on robust, innovative companies like McDonald’s tend to reward patient shareholders.