Meat on Monday said it turned to losses in the third quarter after a coronavirus epidemic weakened demand for its meat alternatives in restaurants.
CEO Ethan Brown said some of the blame for its low result lies in customer stopping. Panic-buying at the start of the crisis had boosted Beyond’s grocery sales in the previous quarter, but as the epidemic dragged on in the fall, the trend stabilized.
The company’s shares plunged 27% in after-hours trading, ushering in an already important day for the stock. Shares stalled twice on Monday after McDonald’s announced on Monday that it was adding plant-based items to its menu.
Here’s what the company reported compared to Wall Street’s expectations, based on a survey of analysts by Refinitive:
- Loss per share: Expected earnings of 5 cents per share, 28 cents, adjusted,
- Revenue: .4 94.4 million Vs. 2 132.8 million expected
For the third quarter ended September 26, Beyond posted a net loss of .3 19.3 million, or 31 cents per share, compared to a net income of 4.1 million or 7 cents per share a year earlier. The company spent 000 700,000 to retrieve items for the grocery store and 1. 1.1 million to write off food inventory, which is undesirable.
Excluding 1. 8.8 million in epidemiological and other costs, the company lost 28 cents per share, losing 5 cents per share as expected by analysts surveyed by Refinitive.
Net sales Will rise 2.7 %.494 million, missing expectations of 13 132.8 million. Its U.S. in the quarter. Foodservice segment sales, including restaurants, corporate catering services and universities, fell 11%.
Brown said there are “strong indications that some big [quick-service restaurants] Menu is planning additions, “but declined to give further details due to the uncertainty created by the epidemic. Fast-food rest restaurant rentals, which are returning very quickly from the crisis, account for about a third of Beyond’s food service sales.
When asked about the collaboration with McDonald’s, Brown said he respects the chain’s decision to refer to its MacPlant line in “generic” terms. He also cited author Mark Twain’s famous quote about being exaggerated about rumors of his death.
“Our relationship with McDonald’s is really good, it’s really strong,” Brown said.
But he said he would resist McDonald’s efforts to abandon the Beaut Meat branding of any products made by the meat substitute manufacturer. Brown told analysts it would be in everyone’s interest.
U.S. Grocery sales have jumped 40.5%, but that alone won’t offset lower restaurant demand. Brown told conference call analysts that food producers in other categories have seen a similar pattern since the initial stoppage affected their third quarter.
Brown also announced on the phone that Beyond Products will be sold at CVS locations.
The company is also rapidly expanding outside the U.S., in September, it agreed to build two factories near Shanghai as it also looks to build a larger presence in China. International revenue sank 45% in the quarter, which was offset by a 65% drop in food sales.
Read the full earnings report here.
This is a breaking news story. Please check back for updates.
.
