Beyond Meat Inc (BYND) posted a fall in quarterly earnings, with sales down from the previous quarter and missing Wall Street expectations, though 3 percent higher than last year.
The seller of plant-based meat products issued its financial report for the third quarter ended September 30 on Monday.
In addition, the world’s largest fast food chain McDonald’s (MCD) announced the introduction of a vegetarian “McPlant” menu and did not designate Beyond Meat as its supplier. The outcome disappointed investors. The companies have previously collaborated at several McDonald’s restaurants in Canada to test Outside Meat products.
Shares of Beyond Meat which are up 65.36 percent since the start of the year, dropped 16.94 percent in Tuesday trading. That followed suspensions of stock trading on NASDAQ stock exchange for several times on Monday because of a sudden drop to -33.77 percent during trade.
The loss per share in the third quarter was $0.28, which is higher than the projected earnings of $0.05 per share by analysts and slightly smaller than the previous quarters and earnings of $0.06 in the third quarter of 2019.
Compared with a profit of $4.1 million a year ago, the net quarterly loss was $19.3 million.
Revenue rose 3 percent to $94.4 million (year-over-year), but was lesser than average analyst estimate of $132.8 million.
Beyond Meat’s management announced a decrease in sales in the restaurant and the most profitable segment of public catering in a statement to the report. In the US sales dropped to 65 percent (compared to sales in the year ago quarter while that fell 11 percent in foreign markets. Analysts have previously recognized that this segment relies on outside of Meat’s earnings, as customers want to try something different in cafes and restaurants.
Sales of Beyond Meat products in U.S. grocery stores for the third quarter rose by 40.5 percent, but overall overseas sales dropped by 45 percent.
The findings were clarified by Ethan Brown, CEO of Beyond Meat, stating that last quarter shoppers, spooked by the pandemic, stocked goods and then altered their actions in the reporting quarter.
The business invested $700,000 on retail stores repackaging items and $1.1 million on writing off unusable inventory at food service locations. However, Beyond Meat Inc (BYND) is not abandoning its expansion plans, considering the low numbers.