LA-based food company Beyond Meat (BYND) is out with its earnings and it looks like the plant-based meat substitutes it makes might be an *acquired* taste.
The company recorded a 12.7% YoY increase in revenues for Q3, reaching $106.4m, but didn’t hit the mark when it came to Wall Street expectations. Although figures were up on an annual basis, the business posted a quarterly drop of about $1.8m. The company forecasts net sales of $65-110m for Q4, $21.6-46.6m lower than Wall Street’s projection.
Overall, Beyond Meat attributes the slowing income to lower demand for meat substitutes in the market and higher costs due to supply-chain issues. These include operational issues like labor shortages at restaurants that order the company’s products and lower demand from grocery stores due to a seasonal shift in customer preferences. Turns out, more people buy substitute Beyond Meat burgers during the summer — who would’a thought!
why it matters
Its CEO hinted at new products during 2022, priced on par with the market’s meat products — though 2022’s a while away. For now, investors seem to be skeptical as Beyond Meat’s stock tanked by 13.3% yesterday.