By Dhirendra Tripathi
Investing.com – Beyond Meat, Inc. (NASDAQ:BYND) stock plunged 9% in premarket trading Friday after the maker of faux meat posted disappointing numbers for the fourth quarter.
Revenue fell short and net loss more than tripled. Loss was wider than analysts’ expectations, driven by higher costs related to marketing, manufacturing, and wage bill during the pandemic.
The company was an investor darling at the time of its May 2019 public listing but has since run into tough competition, higher costs, and supply chain issues. Consumer acceptance of its plant-based food has been muted after the initial euphoria, mainly due to taste and texture reasons.
Sales to U.S. grocers, convenience stores, and other retailers declined by almost a fifth in the fourth quarter. The company attributed this to softer demand, fewer days this time, increased discounting, and “to a lesser extent, loss of market share.” President and CEO Ethan Brown called it a “temporary disruption.”
U.S. retail sales in the plant-based meat category fell 0.4% last year versus 45% growth in 2020, Reuters quoted Brown as saying.
The company is now expecting revenue to be $560 million-$620 million in 2022, up 21-33%, but less than market expectations. The company the results “could differ materially” if assumptions related to the pandemic do not materialize.
Fourth quarter net loss was over $80 million on revenue of about $101 million.