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Beyond Meat Inc. reported third quarter results on Monday.
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Shares of Beyond Meat Inc. plunged more than 25% in extended trading Monday after the leading name in the vegetable meat field reported third-quarter results that fell short of Wall Street estimates.
The poor quarter was exacerbated by news hours earlier from McDonald’s Corp. MCD,
: The fast-food giant has announced McPlant, a line of meat-based alternatives that will launch with tests of a fake hamburger next year that could lead to chicken and sausage substitutes.
Beyond BYND meat,
reported a loss of $ 19.3 million, or 31 cents per share, versus net income of $ 4.1 million, or 6 cents per share, in the quarter a year ago. Revenue increased only 3% to $ 94.4 million, from $ 92 million a year ago.
“Our financial results reflect a quarter in which, for the first time since the start of the pandemic, we experienced the full weight and unpredictability of COVID-19 on our net revenues and, consequently, throughout our P&L.” Ethan Brown, CEO of Beyond Meat, said in a statement.
“Unlike the second quarter where record retail purchases and consumer freezers load offsets the deterioration in our restaurant business when COVID-19 home-based measures and related challenges were introduced. Some of our customers in the restaurant business have had lower than expected third quarter results, ”said Brown.
Beyond Meat said and McDonald’s co-created the plant-based patty that will be available as part of the McPlant platform. However, during a conference call with analysts, Brown said the McPlant news reminded him of a Mark Twain quote. “Reports of my death have been greatly exaggerated,” he joked, before hastily adding, “Our relationship with McDonald’s is fine.”
Pointing out the difficult time, Beyond Meat said it would suspend guidelines for the fourth quarter and full fiscal year.
FactSet analysts had expected earnings per share of 5 cents on revenue of $ 132.4 million.
Despite being grilled in Monday’s after-hours trading, Beyond Meat led a flurry of activity in a sizzling market.
The urgency with which Beyond Meat has spread news has intensified in recent weeks: it has announced a partnership for plant-based Jamaican meatballs to be sold in Golden Krust; the launch of Beyond Breakfast Sausage Links in grocery stores nationwide; and increased grocery distribution of Beyond Breakfast sausage pies at retailers such as Kroger Co. KR,
Walmart Inc. WMT,
and Publix.
Read more: Beyond Meat Earnings Preview: Competition and Pricing Could Affect Margins
Beyond’s results come amid intensified competition with rival Impossible Foods Inc., which announced last month that it plans to “double” its investment in research and development for products and manufacturing.
Areas of investment could include improving the taste and smell of existing products, new types of plant-based meats under development such as fish, and improving manufacturing processes, Chief Financial Officer David Lee told MarketWatch. by Impossible.
Shares of Beyond Meat are up 99% this year. The broadest S&P 500 SPX index,
increased by 10% in 2020.
.
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