Beyond Meat Inc.'s shares fell the most in almost a year after the maker of plant-based meats reduced its revenue guidance for the third quarter, citing a decline in retail orders, operational challenges and ongoing impacts from COVID-19.
The maker of plant-based meats expects revenue of about $106 million in the period, down from its previous forecast of $120 million to $140 million, it announced Friday. Analysts were looking for $134.3 million, according to data compiled by Bloomberg.
Beyond Meat cited reduced demand due to the COVID-19 delta variant, as well as “a decrease in retail orders that persisted longer than expected from a Canadian distributor coinciding with the reopening of restaurants.” The El Segundo, California-based company also pointed to delays in expanding its distribution, which it attributed to labor shortages at its customers.
The diminished forecast marks the latest setback for Beyond as plant-based meat grapples with lukewarm interest from diners and uneven foodservice demand. Retail had been a saving grace during the pandemic for the maker of pea-based burgers and sausages, as at-home eating drove an increase in supermarket sales while some restaurants closed.