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Beyond Meat Lands Another Strategic Partner: Starbucks

By Jon Quast – Feb 26, 2020 at 9:19AM

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It's one of the biggest deals ever for Beyond Meat, as Starbucks doubles down on its commitment to be environmentally conscious.

In January, Starbucks (SBUX 1.82%) 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 (BYND 0.75%) 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. 

New Beyond Meat Cheddar and Egg Sandwich from Starbucks.

Image source: Starbucks

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.

 

Jon Quast has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Starbucks. The Motley Fool has a disclosure policy.

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Stocks Mentioned

Starbucks Stock Quote
Starbucks
SBUX
$90.12 (1.82%) $1.61
Beyond Meat, Inc. Stock Quote
Beyond Meat, Inc.
BYND
$16.03 (0.75%) $0.12
McDonald's Stock Quote
McDonald's
MCD
$239.09 (0.25%) $0.59
Yum! Brands Stock Quote
Yum! Brands
YUM
$112.33 (0.83%) $0.92
Restaurant Brands International Stock Quote
Restaurant Brands International
QSR
$55.13 (-0.63%) $0.35

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