Restaurant sales

Beyond meat loss exceeds higher cost forecasts, restaurant sales slow

A woman sits next to a poster at the booth of the plant-based food company Beyond Meat at VeggieWorld in Beijing, China on November 8, 2019. REUTERS / Jason Lee

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May 6 (Reuters) – Beyond Meat Inc (BYND.O) reported a larger-than-expected quarterly loss on Thursday as the plant-based meat maker incurred higher transportation costs, spent a lot of money on test new product launches and sold less to the pandemic. hit restaurants.

Shares of the California-based company fell nearly 7% amid the extended trading.

The company, which sells fake meat in more than 100,000 outlets worldwide, took advantage last year when consumers stocked bulk packages of its “burgers” in their freezers when ordering. at home across the United States.

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However, restaurant sales took a hit as many closed. Chief Executive Ethan Brown said on a call with analysts that he was seeing a “slow thaw” of this trend.

Despite this, Beyond Meat expects the recovery of its foodservice business to lag the foodservice industry as a whole as it sells to many places where capacity recovers more slowly, including venues. sportsmen.

As restaurant sales declined, the company accumulated more pea protein, leading to increased warehousing costs, he said.

RIVAUX CHOMING

Competition is increasing among manufacturers of plant proteins. In 2020, plant-based retail sales in the United States reached $ 7 billion, up 27% year-on-year, according to the Good Food Institute and the Plant-Based Foods Association (PBFA).

Impossible Foods Inc, Beyond Meat’s biggest rival, is gearing up for a public listing that could value the company at around $ 10 billion or more, Reuters reported in April. Read more

Brown said Beyond Meat’s “main competitor” was cutting two-thirds of its sales and said it “was not going to react and engage in some kind of surrender war with them.”

Beyond Meat expects second-quarter revenue of between $ 135 million and $ 150 million, an increase of 19% to 32%. Analysts were forecasting revenue of $ 142.8 million, according to IBES data from Refinitiv.

In the first quarter ended April 3, net revenue increased about 11% to $ 108.2 million, missing estimates of $ 113.7 million.

Excluding one-off items, it lost 42 cents a share, more than analysts’ expectations of 19 cents.

Its net income fell to a net loss of $ 26.8 million from a profit of $ 1.8 million a year ago.

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Report by Nivedita Balu in Bangalore; Editing by Sriraj Kalluvila

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