In January, Starbucks(NASDAQ:SBUX) CEO Kevin Johnson said the company was exploring options to add more plant-based proteins to its menu as part of the company's commitment to environmental sustainability. Today, Starbucks announced that a Beyond Meat(NASDAQ:BYND) menu item will launch on March 3 in its Canadian Starbucks locations.
Starbucks stated that the Beyond Meat Cheddar and Egg Sandwich will be a part of the core menu in Canada. This is a first for Beyond Meat in the country. Previously the alt-meat company secured a limited-time menu item at Tim Horton's, owned by Restaurant Brands International. However, the menu item was discontinued after its promotional period ended.
The bigger picture
Starbucks is deepening its commitment to environmental sustainability. Other promises include moving toward reusable packaging and improved waste management. With over 31,000 locations worldwide, small moves from the coffee titan could have a large environmental impact.
Beyond Meat generates revenue from two sources: grocery sales and restaurant partnerships. Through nine months in 2019, 48% of Beyond Meat's revenue came from restaurant and food-service. That's up sharply from 34% in the comparable period of 2018, reflecting the company's ongoing strategy. Current trials are being run with Kentucky Fried Chicken of Yum! Brands, and McDonald's in Canada.
Shares of Beyond Meat are up over 5% in pre-market trading, as investors cheer this news ahead of the company's full-year 2019 earnings release. The company is set to release earnings after the market closes on Feb. 27.