Shares of plant-based burger maker Beyond Meat (BYND) are down 25% today after the
company delivered first-quarter revenue that missed Wall Street’s expectations.
The shares are now in danger of falling below the $25 U.S. price set in the company’s 2019
initial public offering (IPO).
Revenue of $109.5 million U.S. in the quarter ended April 2 was below the average estimate of
analysts, prompting today’s big selloff. While U.S. sales outpaced expectations, international
sales missed analysts’ targets.
Beyond Meat’s initial sales boom has worn off and competition has intensified. Its fast-food
partnerships have also slowed dramatically over the past year.
Foodservice sales fell in the U.S., which Beyond Meat attributed to the loss of a single
customer. Dunkin’ stopped selling Beyond Meat’s breakfast sausage at its 9,000 locations last
year. The company still has a high-profile partnership McDonald’s (MCD) but has yet to land a
permanent menu item with the fast-food chain.
U.S. retail sales were up 6.9% thanks to its new artificial jerky product that came out of Beyond
Meat’s PepsiCo (PEP) partnership, but sales of other products have slipped. The jerky product
reduced the company’s margins because it requires a high-cost manufacturing process.
As the plant-based category has become more crowded, consumers aren’t embracing it with the
same enthusiasm they did a few years ago. Many people no longer see the products as healthy,
citing concerns over how processed they are.
Before today, Beyond Meat’s stock had fallen 60% on the year to $26.17 U.S. per share.
