Ted bets the entire heating allowance budget for the year on the King of the Sheep competition on Chris, a sheep who has won several times and is considered a sure thing. Unfortunately, Chris has heard rumours about a sheep-eating beast and isn't feeling at all himself. Chris's owner, Fargo Boyle, begs Ted to help return Chris to his old self. After a week, Ted has successfully returned Chris's spirit. However, Ted finds out that Fargo Boyle arranged for Chris to be frightened by the beast in order to increase the meagre odds being offered for his victory. On the day of the competition, Ted makes a dramatic scene and exposes the whole plot. The two priests leave and Ted is left kicking himself when Dougal points out that, by getting Chris disqualified, Ted has lost the bet and therefore the heating allowance money. In the end, the residents of the parochial house prepare to hibernate for the winter.
Ted and Dougal proved that the "Beast" was a hoax created by Giant Reed and Hud Hastings to rig the "King of the Sheep" competition.
Dougal, Mrs. Doyle and Hud all give a description of the Beast:
It has claws as big as cups (Dougal)
It has four ears, two for listening and two "are sort of back-up ears". Some might be on the inside of its head (Dougal)
It has a retractable leg so it "can leap up at you better" (Dougal)
It has magnets on its tail, so "if you're made out of metal, it can attach itself to you" (Dougal)
It lights up at night (Dougal)
It has a tremendous fear of stamps (Dougal)
Its yawn sounds like Liam Neeson chasing a load of hens around inside a barrel (Dougal)
It has no mouth, but instead has four arses (Dougal)
It only has eyebrows on Saturdays (Dougal)
It lives "on the place where there should be moors" (Mrs. Doyle)
It makes a "terrible howling noise" (Mrs. Doyle)
It is the size of a jaguar [the cat not the car] (Hud)
It has got big white teeth, as sharp as knives (Hud)
The "terrible howling noise" was due to a stereo placed in a tree by Giant and Hud to trick the locals into believing in the existence of the "Beast". The "Beast"'s other features were just rumours spread by Giant and Hud. The "Beast" has been added to Dougal's "They Don't Exist" list alongside the Loch Ness Monster, Frankenstein, Magnum, P.I., non-Catholic gods, Darth Vader and the Phantom of the Opera (which is added at the same time).