Beyond Meat reports lower-than-expected sales as US demand drops

Business

FILE – Beyond Meat brand Beyond Sausage are displayed in a cooler in a market in Pittsburgh, Wednesday, May 5, 2021. Plant-based meat maker Beyond Meat reported lower-than-expected sales in the third quarter due to a slump in U.S. demand (AP Photo/Gene J. Puskar, File)

Plant-based meat maker Beyond Meat reported lower-than-expected sales in the third quarter due to a slump in U.S. demand.

Beyond Meat said its sales increased 12.7% to $106.4 million for the July-September period. That was lower than the $109 million Wall Street forecast, according to analysts polled by FactSet.

Shares in the company based in El Segundo, California, dropped 18% in after-hours trading.

International revenue jumped 142% as Beyond Meat expanded in China and Europe. But U.S. revenue slumped 14%. Retail sales to U.S. consumers were down nearly 16%, while food service sales fell 7%.

The slowdown came even as the company launched a new product, plant-based chicken tenders. The tenders were available at 400 U.S. restaurants starting in July.

Beyond Meat had lowered its sales outlook for the quarter late last month. The company said the delta variant diminished restaurant demand and labor shortages in grocery stores delayed planned distribution expansions.

El Segundo, California-based Beyond Meat also said severe weather impacted one of its manufacturing facilities in Pennsylvania, cutting off water supplies for two weeks.

The company reported a net loss of $54.8 million, or 87 cents per share. That also fell short of analysts’ forecast of a 37-cent loss.

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