BYND Stock – Beyond Meat loss exceeds forecasts on higher costs, slow restaurant sales
Beyond Meat Inc (BYND.O) on Thursday reported a wider quarterly loss than expected, as the plant-based meat maker incurred higher freight costs, spent heavily on testing new product launches and sold less product to restaurants.
Shares of the California-based company fell about 6% in extended trading, after it also saw current-quarter revenue largely below estimates.
The company last year benefited from consumers stockpiling their freezers with bulk packages of its burgers during stay-at-home orders across the United States. As restrictions eased, consumers eager to dine out and socialize have cut back on home cooking.
Sales from restaurants also took a hit, but Chief Executive Officer Ethan Brown said that downward trend is seeing a “slow thaw” in the U.S. and abroad as dining rooms reopen.
Beyond Meat, which now sells its faux-meat burgers and sausages in over 100,000 outlets worldwide, is among many other packaged food companies paying higher costs for everything from raw materials to packaging, forcing many to hike prices.
Net revenue rose about 11% to $108.2 million in the first quarter ended April 3, missing estimates of $113.7 million.
Excluding one-time items, it lost 42 cents per share – much more than analysts’ expectations of 19 cents.
Its bottom line swung to a net loss of $26.84 million from a profit of $1.8 million a year ago.
It expects second-quarter revenue in the range of $135 million to $150 million, a rise of 19% to 32%.
Analysts had forecast revenue of $142.8 million, according to IBES data from Refinitiv.
Competition is rising in the growing plant-based proteins market. In 2020, U.S. plant-based retail sales hit $7 billion, up 27% year on year, according to the Good Food Institute and the Plant-Based Foods Association (PBFA).
Rival Impossible Foods Inc is also preparing for a public listing which could value the company at around $10 billion or more, Reuters reported in April. read more
Tyson Foods Inc (TSN.N) said it is launching plant-based hamburgers and sausages ahead of the summer grilling season. read more
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