Beyond Meat Plunges as Pantry Stockpiling Comes to an End
Beyond Meat Inc. plunged after missing even the lowest of Wall Street forecasts for revenue, hit by a double whammy of eroding restaurant sales and a decline in consumers stockpiling of groceries.
Global sales rose 2.7% in the third quarter to $94.4 million, the company said Monday in a statement. That compared to the $132.1 million average of analyst estimates compiled by Bloomberg. The company also reported a net loss of 28 cents a share, after excluding some items. Analysts had projected a profit of 5 cents.
Beyond Meat has tried to pivot to in-store sales as the pandemic has battered the restaurant industry, which had accounted for about half of the companys sales at the start of the year. But even at-home demand took a pause this quarter, as the panic buying and freezer stockpiling that drove demand earlier in the year generally has subsided, the company said.
The maker of plant-based meat continues to bet on restaurants as a source of growth, however. Earlier Monday, Beyond Meat said it collaborated in the creation of new patties for McDonalds Corp.s new McPlant line. He said Beyond Meat, which fell sharply earlier Monday after McDonalds didnt mention the faux-meat maker in its announcement of the line, has a strong relationship with the fast-food chain.
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