Beyond Meat (BYND) Stock Plunges 14% After Slashing Revenue Outlook Amid a Decrease in Retail Orders
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Beyond Meat (NASDAQ: BYND) stock is down over 14% on pre-open Friday after the company lowered Q3 sales guidance to reflect weaker-than-expected demand.
BYND is now calling for Q3 revenue of $106 million, lower than the previous guidance of $120 million to $140 million. The Street consensus stands at $113 million.
“While the Company continues to study the drivers behind this quarter’s performance, the Company believes demand was impacted by broader ongoing macro and micro-economic factors, including among others, the effects of the COVID-19 Delta variant. The Company also experienced a decrease in retail orders that persisted longer than expected from a Canadian distributor coinciding with the reopening of restaurants, expected incremental orders that did not materialize from a change in a distributor servicing one of the Company’s large customers, observed delays in distribution expansion and shelf resets believed to be driven by customer labor shortages, and incurred shortfalls at certain U.S. foodservice customers believed to be driven by the effects of the COVID-19 Delta variant,” BYND said in a statement.
The slashed sales outlook comes just days after Credit Suisse analyst Samik Chatterjee issued a warning to investors about weak US retail sentiment.
“We remain well below consensus for 2022 sales and we are lowering our 2022 EBITDA and EPS (-$0.60 from -$0.49) below consensus due to our concern that the pace of Foodservice recovery will fall below expectations. In particular, we believe that consensus bakes in an overly optimistic view on McDonald’s McPlant platform in the US, which McDonald’s will begin testing in 8 restaurants beginning November 3. The sudden resignation of COO Sanjay Shah and the vice president of North America fulfillment also comes as a surprise,” the analyst said in a client note.
Prior to today’s move lower, shares of BYND are down 13.5% YTD.
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