Starbucks Canada Jumps on the Beyond Meat Bandwagon

Starbucks jumps on the faux-meat bandwagon, adding the 'Beyond Meat, Cheddar and Egg Sandwich' to its full-time breakfast menu in Canada.
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Coffee giant Starbucks  (SBUX) - Get Report has jumped on the plant-based food craze, adding Beyond Meat  (BYND) - Get Report to its full-time breakfast menu in Canada.

The coffee giant announced on Wednesday that it will be introducing a "Beyond Meat, Cheddar and Egg Sandwich" as part of its core menu offerings at some 1,400 Canadian stores beginning March 3.

The launch comes just a few weeks after Starbucks Chief Operating Officer Rosalind Brewer told analysts and investors on the company’s first-quarter earnings conference call that a plant-based breakfast sandwich was in the offing for both Canada and the U.S. – part of the company's ongoing response to customers looking for more plant-based options.

That follows Starbucks CEO Kevin Johnson's call for the coffee chain to be more sustainable, including expanding plant-based menu options and “migrating toward a more environmentally friendly menu,” he said in a January letter to investors.

It also comes as Beyond Meat prepares to serve up its latest quarterly results, due Thursday after the markets close.

Analysts polled by FactSet are expecting Beyond Meat to post earnings of 1 cent a share on sales of $80.5 million. The maker of plant-based beef and sausage substitutes handily beat Wall Street's consensus estimates last quarter with a profit of 6 cents a share on sales of $92 million.

Starbucks already is facing competition in terms of faux-meat offerings.

McDonald’s  (MCD) - Get Report has been testing a plant-based PLT - plant, lettuce and tomato - sandwich in Canada, while Dunkin' Brands  (DNKN) - Get Report has already added the Beyond Sausage sandwich to its menu. In January, Yum! Brands  (YUM) - Get Report expanded a test of Beyond Meat’s plant-based fried chicken to some 66 of its KFC restaurants.

Privately held Subway, meantime, has been offering Beyond Meat-produced meatless meatball submarine sandwiches. The six-inch sandwich features plant-based meatballs accompanied by marinara sauce, grated parmesan, and mozzarella on toasted bread.

Shares of Starbucks were up 0.34% at $82.47 in morning trading on Wednesday. Shares of Beyond Meat, meantime, were up more than 5% at $115.64.