The third quarter results came on Monday, apart from Meat Inc.
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Shares of Beyond Meat Inc. fell more than 25% in extended trading on Monday after the flagship name in the plant-based meat field, which badly missed Wall Street estimates.
The bad quarter was ended by the news a few hours before McDonald’s Corp MCD,
: The fast-food giant announced McPlant, a line of meat substitutes that will launch next year with trials of a faux burger that could eventually lead to chicken and sausage substitutes.
Meat Beyond BYND,
The year-ago quarter reported a loss of $ 19.3 million, or 31 cents per share, net income of $ 4.1 million, or a loss of 6 cents per share. Revenue increased only 3% to $ 94.4 million from $ 92 million a year earlier.
“Our financial results reflect a quarter where, after the epidemic first began, we experienced the complete brutality and unpredictability of COVID-19 on our net revenues and, accordingly, during our P&L,” Chief of Meat’s Chief Ethan Brown said in a statement.
“Unlike the second quarter, where record retail purchases and freezer loading by consumers closed the decline of our food-services business, as COVID-19 Stay-Home and related measures continued the long tail of retail stockpiling by consumers Brown said that the challenge before most of our food-serving customers was to have Q3 results, which were lower than we expected.
Beyond Meat said it and McDonald’s co-created the plant-based patty, which will be available as part of the MacPaintant platform. Still, Brown cracked up in a conference call with analysts late Monday evening that McPlant’s news reminded him of a Mark Twain quote. “Reports of my death have been greatly exaggerated,” he joked before adding hastily, “Our relationship with McDonald’s is fine.”
Still, a handful of analysts cite McDonald’s earlier calls, saying they misunderstand Beyond Meat’s input.
Outlining the Rough Patch, Beyond Meat said it is suspending guidance for the fourth quarter and the entire fiscal year.
FactSet analysts expected earnings per share of 5 cents on revenue of $ 132.4 million.
Despite being grilled in the after-hours trading Monday, Beyond Meat has sparked activity in a booming market.
The news about Beyond Meat has intensified over the past few weeks: It announced a partnership to sell plant-based Jamaican patties to Golden Crust; Introduction of bread breakfast sausage link at grocery stores across the country; And beyond the retailers like Kröger Company KR, grocery distribution of bread breakfast sausage patties grew.
Walmart Inc. WMT
And publicly.
Read more: Previews Beyond Meat Earnings: Competition and Pricing Can Take a Toll on Margin
Beyond results have come amid competition with rival Impossible Foods Inc., which announced last month that it had “doubled down” on investment for R&D products and manufacturing.
Areas of investment could include improving the taste and smell of existing products, developing new types of plant-based meat such as fish, and increasing manufacturing processes, improbable chief financial officer David Lee told Marketwatch.
Beyond Meat shares have risen by 99% this year. Comprehensive S&P 500 Index SPX,
10% increase in 2020.
.