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Beyond Meat Shares Surge As Starbucks Looks Towards Plant Options In Carbon Pledge

Neer Varshney

Beyond Meat Inc.'s (NASDAQ: BYND) shares continued their surge on Tuesday as Starbucks Corporation (NASDAQ: SBUX) said it would expand into more plant-based options to reduce its carbon impact.

In an open letter on Tuesday, Starbucks CEO Kevin Johnson said the coffee chain would aim to become "resource positive."

Johnson said that Starbucks would seek a 50% cut in carbon emissions from its direct operations and supply chain. The company will also ensure that at least 50% of its water comes from conserved or replenished sources and also aim to cut 50% of the waste it sends to landfills.

To achieve this, Johnson said that the company would expand plant-based options and migrate towards a "more environmentally friendly menu."

“It shows how the trend continues to go mainstream," Oppenheimer analyst Rupesh Parikh told Bloomberg. “Beyond likely has a chance at selling products at Starbucks.”

Starbucks ‘Resource Positive' Pledge

The coffee giant will also shift from single-use to reusable packaging, according to Johnson, besides making investments in relevant climate infrastructure.

The Starbucks pledge is similar to what Microsoft Corporation (NASDAQ: MSFT) said last week, except the latter pledged to become "carbon negative."

Unlike Microsoft, Starbucks' pledge is somewhat short of details on its plan to fulfill the "multi-decade aspiration to become resource positive and give more than we take from the planet."

The plant-based meat maker Beyond Meat's shares closed 18.38% higher at $129.18. The shares added another $1.22 in after-hours trading.

Starbucks' shares closed 1.16% lower at $92.53 on Tuesday.

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