Beyond Meat (NASDAQ:BYND) announced Thursday that it had negotiated agreements with both McDonalds and Yum Brands. However, shares fell amid the release of its earnings report.The company’s quarterly loss surpassed the anticipated amount as the pandemic continues to affect the business.
“Although weakened foodservice demand resulting from the global pandemic has impacted our near-term profitability, we continue to press forward with strategic investments in service of our future growth, including the build out of our production facilities in China and Europe, bolstering our research and development capabilities, amplifying our marketing voice, upgrading our IT infrastructure, and, importantly, continuing to build out talented teams across the globe to bring our ambitious goals to fruition,” said President and CEO Ethan Brown.
The company reported a loss of USD0.34 per share, compared to the expected USD0.13 a share. Revenue amounted to USD101.9 Million, lower than analysts anticipated USD103.2 Million.
According to Brown, Beyond remains the top plant-based meat alternative on the market, based on IRI information.
As the pandemic affects restaurant demands for meat substitutes, U.S. foodservice has plummeted 42.6%. However, the partnership with McDonald’s and Yum Brands demonstrates that restaurants believe their customers still seek plant-based alternatives.
Financial details regarding the deals have yet to be disclosed, though Brown mentioned that the impact is expected to be “fairly modest” within 2021.
“These deals are enormous,” Brown said. “They are the biggest deals you could possibly put together in food in our sector. And we don’t want people to get ahead of themselves.”