Beyond Meat’s partnership with McDonald’s to develop the McPlant burger wasn’t enough to keep shares from collapsing after the company posted third-quarter earnings that fell far below analysts’ expectations.
The big miss sent shares tumbling nearly 29% in after markets closed Monday after reporting it generated $94.4 million in revenues and a loss of 28 cents per share versus the $132.8 million in revenue and 5 cents per share loss that analysts had expected.
“Our financial results reflect a quarter where for the first time since the pandemic began, we experienced the full brunt and unpredictability of COVID-19 on our net revenues and accordingly, throughout our P&L,” Beyond Meat’s president and chief executive, Ethan Brown, said in a statement. “Unlike the second quarter where record retail buying and freezer loading by consumers offset the deterioration of our foodservice business as COVID-19 stay-at-home and related measures set in, the long tail of retail stockpiling by consumers, coupled with continued challenges across the majority of our foodservice customers, led to Q3 results that were lower than we expected.”
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