Beyond Meat Inc.’s stock tumbled 15% in extended trading Thursday after the company came up short on quarterly estimates.
The plant-based protein company
BYND,
-5.46%
reported an adjusted net loss of $21.4 million, or 34 cents a share, compared with a net loss of $452,000, or a penny a share, in the year-ago quarter.
Revenue inched up 3.5% to $101.9 million from $98.5 million a year ago. Analysts surveyed by FactSet had expected a net loss of 14 cents a share on revenue of $103.6 million.
“Although weakened foodservice demand resulting from the global pandemic has impacted our near-term profitability, we continue to press forward with strategic investments in service of our future growth, including the build out of our production facilities in China and Europe, bolstering our research and development capabilities, amplifying our marketing voice, upgrading our IT infrastructure, and, importantly, continuing to build out talented teams across the globe to bring our ambitious goals to fruition,” Beyond Meat Chief Executive Seth Goldman said in a statement disclosing the results.
The financial results initially sent shares of Beyond down 15% in extended trading Thursday. Beyond Meat’s shares temporarily surged in late January, following news that it had reached a deal to make snacks and beverages with PepsiCo. Inc.
PEP,
-1.58%,
but have since cooled. Beyond shares are up 35% over the past year. The broader S&P 500 index
SPX,
-2.45%
has improved 29% in the last year.
Beyond is feeling the squeeze competitively from Impossible Foods Inc., which this month announced its third double-digit price-cut in less than a year — 20% off patties (to $5.49) and 12-oz. packages (to $6.99) in thousands of stores that include Kroger Co.
KR,
-1.04%,
Walmart Inc.
WMT,
-0.95%,
Publix Super Markets Inc., Safeway Inc., Sprouts Farmers Market Inc.
SFM,
-4.47%,
Target Corp.
TGT,
-1.07%,
and Trader Joe’s.
Impossible’s aggressive pricing could complicate Beyond Meat’s efforts to turn turn its first annual profit since its IPO in 2019.
