Starbucks Partners with Impossible For Plant-Based Menu

Starbucks Partners with Impossible For Plant-Based Menu
June 24, 2020

 

Starbucks Corp (Nasdaq: SBUX) announced yesterday that it has started offering a plant-based breakfast sandwich provided by Impossible Sausage. The coffee chain further stated that the summer menu is now offered at a majority of its approximately 15,000 restaurants in the country. The stock, down 14.2% for the year-to-date, closed at $75.41, almost flat from the prior close.

The Seattle, Washington-based company’s plant-based sandwich will also include a fried egg and cheddar cheese. The sandwich will be made of ciabatta bread. Additionally, as part of the summer menu, Starbucks is also offering two cold-brew beverages (coffee-based). Exclusively in the Midwest and California, the foam will be almond milk flavored with either dark cocoa or cinnamon. The price range of cold brew beverages is between $4.45 and $4.75. Likewise, the Impossible Breakfast Sandwich costs between $4.95 and $5.25.

The latest sandwich joins a list of non-meat menus introduced by Starbucks in recent years. The menu, according to Starbucks, is another step towards attaining sustainability goals. The company is aiming to save water, reduce carbon footprint, and decrease wastage.

Michael Kobori, chief sustainability officer at Starbucks, stated that the company had started offering plant-based milk substitutes such as soy, coconut, almond, and oat milk in the past few years as per customer’s changing food preferences. Kobori further stated that the company is happy to include the breakfast sandwich, another plant-based menu, in its list of offerings. Notably, Starbucks has earlier collaborated with Beyond Meat to offer plant-based menus in China and Canada. Beyond Meat is a competitor to Impossible.

Regarding the inclusion of Impossible Breakfast Sandwich, Michael Kobori, chief sustainability officer at Starbucks, said, “We’re pleased to add the Impossible Breakfast Sandwich, made with Impossible plant-based sausage, to Starbucks menu in the US, to meet the growing customer-interest in plant-based options. Over the years, in response to customer interest, we have added plant-based milk alternatives such as soy, coconut, almond, and oat milk. We are thrilled to expand our plant-based menu into food with this new breakfast sandwich.” 

Notably, last year, Impossible Foods entered into a similar agreement with Burger King. Commenting on the partnership, Patrick Brown, founder and CEO of Impossible Foods, said, “Starbucks’ commitment to add more plant-based ingredients to its menu is a new benchmark for large corporations. Impossible Foods is making plant-based foods that deliver unrivaled taste, nutrition, and convenience. We’re excited to work with Starbucks, which shares our mission to make the global food system sustainable.”

Fundamentally, the stock might remain range-bound as the market may closely watch for a response to the new menu before trending in a particular direction.

Technically, the stock is facing downward pressure (making lower highs), as shown in the chart below. The money flow index is also nearing the overbought region. Therefore, a price correction may take place in the days ahead. A stop-loss order should definitely be placed above the descending trend line in case a short position is opened.

sbux - technical analysis - 24th June 2020

Disclaimer: Any financial trading analysis offered here is our opinion and is not intended as advice or direction for investors. We cannot guarantee the success of any trades made as a consequence of this article, and we encourage traders to incorporate a strong money management strategy to limit losses when they enter the markets. Please use this article as part of your own research before formulating strategies prior to trading.

Richard W

Richard W

Richard is the guy who know everything there is about the financial industry, working in a top firm for over 15 years, he will give the lowdown on some of the biggest companies in the world


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