Beyond Meat on Monday said it swung to a loss in the third quarter after the coronavirus pandemic weakened demand for its meat alternatives at restaurants.
CEO Ethan Brown said that some of blame for its lackluster results lies with consumer stockpiling. Panic-buying at the start of the crisis lifted Beyond’s grocery sales in the previous quarter, but as the pandemic stretched on into the autumn, the trend stabilized.
Shares of the company plunged 26% in after-hours trading, capping off an already eventful day for the stock. Shares were halted twice on Monday following the announcement that McDonald’s was adding plant-based items to its menu.
Here’s what the company reported compared with what Wall Street was expecting, based on a survey of analysts by Refinitiv:
- Loss per share: 28 cents, adjusted, vs. earnings of 5 cents per share expected
- Revenue: $94.4 million vs. $132.8 million expected
For the third quarter ended Sept. 26, Beyond reported a net loss of $19.3 million, or 31 cents per share, compared with net income of $4.1 million, or 7 cents per share, a year earlier.
Excluding items, the company lost 28 cents per share, missing the earnings of 5 cents per share expected by analysts surveyed by Refinitiv.
Net sales rose 2.7% to $94.4 million, missing expectations of $132.8 million. Sales of its U.S. foodservice segment, which includes restaurants, fell 11% in the quarter.
U.S. grocery sales surged 40.5%, but it only barely offset the lower restaurant demand. Brown announced on the call that Beyond products will be sold at CVS locations.
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