Beyond Meat Misses Estimates on Weak Foodservice Revenue

Plant-based meat maker grows retail sales in U.S. and international sectors.
Author:
Publish date:

Beyond Meat, Inc.  (BYND) - Get Report reported disappointing first-quarter results after the bell, Thursday, missing analyst estimates for revenue and reporting a wider-than-expected loss.

The plant-based meat maker posted sales of $108 million, up 11% from the same period a year earlier. The company said it lost 43 cents a share in the quarter, vs. a profit of 3 cents a share in the year-earlier period. 

Beyond Meat had been expected to report a loss of 18 cents a share, on sales of $112.6 million, based on a FactSet survey of 14 analysts.

The stock has fallen 15.4% since the company last reported earnings on Feb. 25.

"Due to the COVID-19 pandemic, the company continues to experience significantly reduced demand in its foodservice channel," Beyond Meat said in a statement. "At the same time, the surge in demand from retail customers that characterized the early stages of the pandemic as consumers abruptly shifted towards more at-home consumption has moderated."

The company said first-quarter revenue from foodservice sales in the U.S. fell 26% to $16.7 million from a year earlier. International foodservice sales fell 44% to $10.4 million. 

U.S. retail sales rose 27.8% to $63.8 million, while international retail sales jumped 189% to $17.2 million.

The company forecast second-quarter net revenues of between $135 million and  $150 million, up 19% to 32% from a year earlier.

Shares of Beyond Meat fell  $6.04, or 5.07%, to $113.00 in after-hours trading. Shares lost 2% in the regular session Thursday.

Earlier this week, Tyson Foods  (TSN) - Get Report announced plans to introduce its own line of vegan burgers, signaling growing competition in the alternative meat industry.

The company is reportedly developing an alternative to chicken which could be released later this year.

Last month, Beyond Meat opened its first facility outside the U.S., in China.