Dunkin' is adding Beyond Meat to its menu, as the plant-based meat trend continues to gather steam.
The coffee chain is offering a breakfast sandwich made with Beyond Sausage, starting with locations in Manhattan. The company plans to roll out the menu option nationwide in the future.
Shares of Beyond jumped 4% in premarket trading Wednesday, while Dunkin's stock rose 1.5%.
Dunkin' is the first U.S. restaurant chain to add Beyond Sausage to its menu. Canadian coffee chain Tim Hortons, which is owned by Restaurant Brands International, recently rolled out breakfast sandwiches made with the plant-based meat substitute. It also added its first burger — the Beyond Burger — to its menu.
Consumer demand for more vegan and vegetarian options has been driving restaurants to add products from Beyond and its competitor Impossible Foods, although some, such as McDonald's and Chick-fil-A, are sitting out for now.
The NPD Group found that 18% of Americans are trying to reduce their meat intake. The U.S. market for meat substitutes reached $1.44 billion in 2018, according to Euromonitor data. Beyond's market share is only about 2%.
Since its initial public offering in May, Beyond Meat's stock has surged nearly 700%, as investors try to get in on the vegan meat craze. Ahead of its earnings report on Monday, the stock surpassed $200 per share and hit an all-time high of $208.48 on Tuesday. The stock now has a market cap of $11.8 billion.
Dunkin's stock has risen nearly 25% since the start of the year, bringing its market value to $6.6 billion. The company rebranded last year, dropping the word "Donuts" from its name, and has put a focus on espresso drinks and a streamlined menu.
