Beyond Meat (NASDAQ:BYND) reported a bigger quarterly loss than expected as the plant-based meat maker incurred higher freight costs, spent heavily on testing new products, and sold less to restaurants.
Shares of the company fell nearly 7% in extended trading after the results were announced. Beyond Meat, which sells fake meat in over 100,000 outlets worldwide, said sales to restaurants took a hit as many remained closed in the first quarter due to the ongoing pandemic.
Beyond Meat said in a news release that it expects the recovery in its food service business to lag the broader restaurant sector because it sells in places where capacity is recovering more slowly, including sports venues.
Competition is rising among plant-based protein makers. In 2020, U.S. plant-based retail sales reached $7 billion U.S., up 27% year-over-year, according to the Good Food Institute and the Plant-Based Foods Association. Impossible Foods, Beyond Meat’s biggest competitor, is preparing for a public listing which could value the company at around $10 billion U.S.
Beyond Meat said it expects second-quarter revenue in the range of $135 million U.S. to $150 million U.S., a rise of 19% to 32%. Analysts had forecast second-quarter revenue of $142.8 million U.S., according to Refinitiv data.
In the first quarter, Beyond Meat’s net revenue rose about 11% to $108.2 million U.S., missing analyst estimates of $113.7 million U.S. Excluding one-time items, it lost 42 cents U.S. per share – wider than analysts’ expectations of a 19-cent U.S. loss.