Beyond Meat Inc.’s not-so-great 2022 took an ugly turn for the worse on Wednesday, with quarterly results lacking in brutality.
Plant-based meat products maker BYND, -13.83%, reported a net loss of $100.5 million, or $1.58 a share, compared to a net loss of $27.3 million, or 43 cents a share Stock in the same quarter last year. Net sales of $109.5 million increased 1% from $108.2 million a year earlier.
Analysts polled by FactSet were expecting a net loss of 97 cents a share on revenue of $112.4 million.
The results sent Beyond Meat shares down 26% in after-hours trading on Wednesday, after falling 14% in the regular session to $26.17. Shares moved below the $25 price tag for meat alternatives at the company’s IPO for the first time since the stock traded about three years ago.
“While we recognize that the decisions we are making today in support of our long-term ambitions have contributed to challenging near-term results, including a significant, albeit temporary, reduction in gross margin as we took costly actions to support key strategic product launches “We’re confident in the future we’re building as we advance our mission,” said Ethan Brown, chief executive of Beyond Meat, in a statement announcing the results.
Still, Beyond executives warned of “near-term uncertainty related to macroeconomic issues, including inflation and rising interest rates, COVID-19 and its potential impact on consumer behavior and demand, labor availability and supply chain disruptions, in part due to the recent… geopolitical tensions.” Additionally, Beyond offered fiscal 2022 revenue guidance of $560 million to $620 million; Analysts polled by FactSet expect $580.7 million.
Then there is the McPlant puzzle.
McDonald’s Corp. MCD, -0.51%, did not mention Beyond’s McPlant’s continued US expansion during its conference call last week, after previously denying a report that it plans to keep the plant-based burger as a permanent menu item.
The confusion began following comments from McDonald’s Global Chief Marketing Officer Morgan Flatley at Fast Company’s Most Innovative Companies Summit on March 27, “with Beyond Meat like McPlant.
Shares of Beyond Meat are down 60% so far in 2022, while the broader S&P 500 index SPX is down 17% at -1.65%.
Beating Beyond has shed a bright light on the plant-based meat market and its ripple effect.
Impossible Foods Inc., which has long been rumored to be an IPO candidate, is on hold based on recent comments from its new CEO Peter McGuinness.
“I don’t think it’s a good time for anyone right now because the markets are so incredibly volatile,” he told Food Navigator. “And in the case of Impossible, the cash position is very strong, so there is ample investment to drive all of the growth, so there is no urgency to go public at this time.”