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Beyond Meat Slumps as Consumers Go Slow on Plant-Based Meat

Published 2021-11-11, 09:24 a/m
©  Reuters
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By Dhirendra Tripathi

Investing.com – Beyond Meat stock (NASDAQ:BYND) tumbled more than 18% in premarket trading Thursday as the maker of plant-based meat signaled more pain ahead after a weak third quarter.

Beyond Meat is now forecasting current-quarter revenue at $110 million at the top end, well below Reuters estimates of around $132 million. On the lower side, it sees $85 million in revenue. Fourth-quarter revenue last year was $102 million.

The third quarter threw more than a little surprise at the fake meat maker as fewer people stocked plant-based burgers and sausages at home after they resumed eating out.

Sales of its products at restaurants also suffered as labor shortage forced owners to cut their hours and trim menus. Severe weather, leading to operational challenges, also played the spoilsport, according to the company.

Partnerships, like one with McDonald’s (NYSE:MCD), were slow to take off.

The retail segment in the U.S., the company’s biggest source of revenue, suffered the most. U.S. net revenue fell about 14%.

Total net revenue rose nearly 13% to over $106 million. The net loss was $54.8 million, or 87 cents a share. As a percentage of net revenue, it was over 51%, almost quadrupling from second quarter’s 13%.

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