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Sales are expected to increase by over 40% year over year. They have increased by about 2%.
Angela Weiss / AFP via Getty Images
Alternative protein company
Beyond meat
reported terrible quarterly sales on Monday night and the title was getting hammered after hours.
Beyond Meat (ticker: BYND) reported a loss of 31 cents per share versus $ 94.4 million in sales. Wall Street was looking for a profit of 5 cents a share on $ 132 million in sales.
The results will leave analysts and investors scratching their heads. Beyond Meat sales are expected to increase by over 40% year over year. They have increased by about 2%.
“We have experienced the full weight and unpredictability of Covid-19 on our bottom line,” CEO Ethan Brown said in the company press release. “Unlike the second quarter, where record retail purchases and consumer loading of freezers offset the deterioration in our restaurant business … [third-quarter] results below our expectations. ”
It seems there were too many products in the chain and the restaurant business remains contested.
It is a big failure. Stocks were down 28% around 5 p.m. EST. The action is often volatile around earnings releases, moving 20% higher or lower, on average, over the past six Quarterly Reports.
Shares fell more than 4% in regular trading on Monday ahead of the earnings report. This seems to be the result of
Mcdonalds
(MCD) introduces its McPlant Burger – a meat-flavored vegetarian burger that is not from Beyond Meat.
From the start of the year through Monday’s close, the Beyond stock is up about 100%, far better than comparable returns from the
S&P 500
and
Dow Jones Industrial Average.
Until the quarter just reported, the company had managed to weather the pandemic-forced transition from restaurants to grocery chains, while expanding international distribution in 2020.
Beyond Meat management set up a conference call starting at 4:30 p.m. EST. Investors and analysts will want to hear about the competitive threat from McDonald’s and, of course, details of the weaker-than-expected quarter.
As to where the stocks may go, it will be difficult for investors to guess. This is the company’s first big quarterly shortfall.
Write to Al Root at [email protected]
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