Beyond Meat (NASDAQ: BYND) shares fell over 13% during morning trading Friday following the company’s warning that it anticipates lower than expected revenue within the third quarter. The decline comes amid low retail orders, operational issues, labor shortages, and the ongoing coronavirus pandemic.
The plant-based meat substitutes producer revealed it expects net sales of USD106 Million, compared to its previous forecast of USD120 Million to USD140 Million. Meanwhile, Wall Street analysts were anticipating revenue of USD133.1 Million within the quarter. Beyond Meat has yet to release an outlook for its quarterly earnings.
The company was one of the first to enter its field, however, competition has increased during the last couple of years. Large companies such as Conagra Brands Inc. and in-store supermarket brands like Kroger’s Simple Truth have become rivals.
In a corporate filing, the company noted that “The loss of any large customer, the reduction of purchasing levels or the cancellation of any business from a large customer for an extended length of time could negatively impact our sales and profitability.”
According to the Los Angeles Based company, a Canadian distributor reduced retail orders for longer than anticipated as its restaurants began to reopen. Beyond had believed that orders would increase, which did not happen as one of its large customers changed distributors.
Beyond will be reporting its full third-quarter results on November 10.