Beyond Meat (NASDAQ:BYND) on Thursday announced that it has struck deals with fast-food giants McDonald’s (NYSE:MCD) and Yum Brands (NYSE:YUM), but shares fell on a disappointing earnings report.
The company posted a bigger-than-expected quarterly loss as the cost of global expansion and weak restaurant sales weighed on the business.
The company’s stock whipsawed in extended trading, initially falling on the earnings news, then rising on the supply agreement, driven by hopes that the new restaurant deals will fuel growth. Recently, shares were down about 3%.
The company reported its fiscal fourth-quarter net loss of $25.1 million, or 40 cents per share, widened to a loss of $452,000, or 1 cent per share, a year earlier.
Excluding expenses attributed to the pandemic, Beyond lost 34 cents per share, wider than the loss of 13 cents per share expected by analysts.
Net sales rose 3.5% to $101.9 million, missing expectations of $103.2 million. U.S. grocery revenues climbed 76% in the quarter, although the company noted that retail demand has moderated since the early stages of the crisis.
CEO Ethan Brown said that Beyond is still the top plant-based meat alternative in grocery stores, based on IRI data.
Under the new three-year deal with McDonald’s, Beyond will be the preferred patty supplier for its McPlant burger, which is being tested in some markets globally. McDonald’s and Beyond will also work together to develop new substitutes for pork, chicken and egg.
BYND shares leaped $3.44, or 2.4%, to $147.19, while MCD took on $1.65 to $211.31, but YUM shares dropped 19 cents to $104.51.
