Beyond Meat shares bleed on bleak revenue forecast as retail demand dips
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October 22, 2021
(Reuters) -Beyond Meat Inc on Friday cut its third-quarter revenue forecast, blaming a host of factors including a drop in demand from grocery stores and a labor shortage that led to delays in restocking shelves, sending its shares down 15%.
The company, which gets the bulk of its revenue from retailing, has suffered from a weakening trend of people stockpiling faux meat burgers and sausages at home as they started dining out.
It also said new orders from a distributor servicing one of the company’s large customers did not materialize, while severe weather caused damage to inventory stored at one of its facilities.
Beyond Meat’s forecast cut comes a few months after the company said its restaurant customers were placing more conservative orders due to uncertainty over to the Delta variant of the coronavirus.
The red-hot faux meat startup is also facing other challenges including growing competition from Impossible Foods and others, and surging raw material prices.
Beyond Meat said it now expects third-quarter net revenue of about $106 million, compared with its prior forecast of $120 million to $140 million.
Beyond Meat, which fell 13% this year up to last close, is due to report its full third-quarter results on Nov. 10.
(Reporting by Uday Sampath in Bengaluru; Editing by Shinjini Ganguli)
Source Link Beyond Meat shares bleed on bleak revenue forecast as retail demand dips
Tajammul Pangarkar is a CMO at Prudour Pvt Ltd. Tajammul longstanding experience in the fields of mobile technology and industry research is often reflected in his insightful body of work. His interest lies in understanding tech trends, dissecting mobile applications, and raising general awareness of technical know-how. He frequently contributes to numerous industry-specific magazines and forums. When he’s not ruminating about various happenings in the tech world, he can usually be found indulging in his next favorite interest - table tennis.
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