Shares of plant-based artificial meat producer Beyond Meat got a big boost on Tuesday following an announcement made by Starbucks that it would be adding more plant-based menu options in the coming months. The company's shares surged by 13 percent following the news as investors bet big on the success of the firm's partnership with the coffee retail giant.
Starbucks released an official announcement on Tuesday, stating that it will soon be adding more plant-based meat options to its menu items. The move is the company's way of becoming more "resource positive" and as a way for it to contribute to the fight against climate change.
Starbucks did not provide any specific timeline for the new items nor did it provide any details to the menu items it plans to add. However, given the specific products that Beyond Meat has already introduced, Starbucks will likely offer different kinds of breakfast and sandwich options using plant-based meat substitutes paired with its signature coffee products.
The coffee chain operator's partnership with Beyond Meat is part of its preliminary goals to cut its carbon emissions by half by 2030. The company has already started to implement measures that effectively recycle its water and other products throughout its operations.
The big boost to its stock prices this week has pushed Beyond Meat closer to having its best month ever. Since the start of January, Beyond Meat's shares have jumped by more than 62 percent. The surge in its shares was mostly due to the company's newly formed partnerships with food retail giants such as Mcdonald's, which Beyond Meat partnered with, earlier in the year.
Despite the surge in its share prices, Beyond Meat is still miles away from reaching its all-time high of $239.71 per share in July. Following a short surge after its IPO, Beyond Meat's stocks had plunged to as low as $73 per share. The stock has slowly been recovering, with the recent surge burning short-sellers who had bet on the stock further decline.
While the company's volatile stocks have turned off some investors, some have bet big on the company's ability to meet the rising demand for meat alternatives. The demand for the company's products has escalated amid rising environmental and health concerns surrounding the food industry.
In line with the demand, major food chain operators have approached companies like Beyond Meat to add more variety to their menus. Apart from McDonald's and Starbucks, other major food retailers that have started using Beyond Meat's plant-based products include Carl's Jr. and Dunkin' Donuts.
