Beyond Meat reported a bigger-than-estimated loss in the first quarter as the producer of plant-based meat substitutes struggled with slowdowns and closing restaurants, campuses and stadiums that account for a significant slice of its business, Bloomberg reported Friday.
The initial stock reaction saw the company's shares drop 10% during extended trading Thursday. Beyond Meat reported a revenue of $108 million against the $113.18 million that Wall Street expected. Its adjusted profit-loss per share was minus $0.42 compared with minus $0.21 cents estimated by analysts.
Chief executive officer Ethan Brown said Beyond Meat was seeing a "slow thaw" in its food service unit in the U.S. and some foreign markets, forcing the company to release a revenue forecast for the next quarter, CNBC reported.
This is the third quarter in a row that the company has posted a wider-than-expected loss. Beyond Meat has been investing back into its business as it tries to regain position as a global player. It now has production plants in China and the Netherlands.
While volume sales improved in the quarter, it was partially offset by lower pricing through promotions and bigger packages. Beyond has long set its sights on trimming prices to better compete with meat, and has also been forced to compete with rival Impossible Foods' recent price reductions, according to Bloomberg.
Beyond Meat forecast sales of $135 million to $150 million in the second quarter, with the midpoint slightly above analyst projections of $142.01 million, Investors.com said.
The company did not provide an outlook for the full year, citing the uncertainty caused by the global health crisis.
Restaurants banned indoor dining and cut down their menu offerings last year. Beyond has shifted its business to grocery stores and other forms of distribution in the process. Dining restrictions have since been loosened.
