Beyond Meat slumps after the fake meat company reports a wider than expected loss for the 1st quarter
- Beyond Meat shares tumbled 10% after the company announced a wider than expected loss for the first quarter of 2021.
- Customers, including restaurants, bought less of their meat substitute, which they stockpiled during the height pandemic.
- This is the third straight quarter that Beyond has reported losses that were wider than expected.
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Beyond Meat shares tumbled on Friday after the plant-based meat producer announced a wider than expected loss for the first quarter of the year. Customers, including restaurants, bought less of the company's meat substitute, which they stockpiled during the height pandemic.Share were down as much as 10% in premarket trading, before paring losses to around 4% after the opening bell.
This is the third straight quarter that Beyond has reported losses that are wider than expected.The company attributed the decline to the restaurant industry, which suffered as restrictions on dining out tightened. But Beyond's founder and CEO Ethan Brown said he is optimistic about seeing a "thaw" in the near future.
"More near-term, we are cautiously returning to the practice of issuing guidance, starting with net revenues, as we have recently begun to see a slow thaw occurring within foodservice both domestically and in certain international
US retail sales climbed 27.8% to $63.8 million while international retail sales rocketed 189% to $17.2 million, accounting for a quarter of the company's revenue.
Beyond has production centers in China and the Netherlands and sells its products in more than 80 countries.Its rival, Impossible Foods, is exploring a public listing that could give the company a valuation of $10 billion, Reuters reported in April.
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