Shares of the El Segundo, Calif., company at last check were off 15% to $80.53. They've traded on Thursday at a 52-week low $76.77, down 19%.
Beyond Meat reported $106.4 million in revenue for the quarter, which was lower than $109.2 million expected by analysts surveyed by Refinitiv.
The company said the revenue decline resulted from lower overall demand and operational challenges with severe weather as a key driver.
"We view the results as further evidence that Beyond’s business is reaching market saturation faster than expected and that the company has deeper problems that won’t be easy to fix," said Credit Suisse analyst Robert Moskow, who cut his price target to $60 a share from $75 a share.
Moskow, who has an underperform rating on the shares, said in a research note that management attributed Beyond’s sales declines in U.S. retail to six different Covid-related factors that will prove transitory over time.
"But why should we believe that macro factors are the reason for Beyond’s slowdown when so many other early-stage growth brands (e.g. Freshpet, Impossible Burger, Dot pretzels) are performing so well?" he asked.
Oppenheimer analyst Rupesh Parikh, who has a perform rating on the company, said Wall Street estimates have remained too aggressive "in light of growing competition, execution challenges, and now more challenged category trends."
"We believe investors should remain on the sidelines, and we remained focused on BYND's efforts to scale foodservice going forward," he said.
JPMorgan analyst Ken Goldman said Wall Street's estimates were too high.
Goldman, who slashed his price target to $54 from $79 while keeping an underweight rating, said that unless Wall Street estimates fall further today than expected, especially on the Ebitda line, "it will be difficult for us to hold a more constructive rating,"
Bernstein analyst Alexia Howard downgraded Beyond Meat to market perform from outperform with a price target of $100, down from $130, after the results were posted.
Howard said in a research note that she saw ongoing uncertainty around demand trends in Beyond Meat's U.S. retail and foodservice channels.
In addition, the analyst said the company was likely to face ongoing margin pressure from labor and supply chain issues as well as escalating pea protein costs when contracts roll over.
While the "robust growth" in international markets is encouraging, Howard said Beyond Meat's expected recovery of momentum in the U.S. retail and foodservice channels remains uncertain.