Beyond Meat Shares Tumble After Q3 Results Disappoint and Analysts Express Concern

Alternative meat company Beyond Meat saw its shares tumble a whopping 17% Thursday morning after analysts expressed worry about the company’s long-term growth.

Beyond Meat reported its third quarter financial results this week with a weak forecast for fourth quarter sales.

Credit Suisse analyst Robert Moskow wrote in a note that Beyond could be reaching market saturation faster than expected.

The plant-based meat maker reported its Q3 loss was wider than expected, while revenue fell short of expectations, even after a warning from the company last month.

Jefferies called it “the quarter that likely broke the camel’s back” while Bernstein analyst Alexia Howard downgraded the stock, telling investors to not buy the dip.

“We view the results as further evidence that Beyond’s business is reaching market saturation faster than expected and that the company has deeper problems that won’t be easy to fix,” Credit Suisse analyst Robert Moskow wrote in a note.

The company cited many factors for its weak quarter, including severe weather, the delta variant and restaurants’ labor challenges. CEO Ethan Brown told investors that the problems were largely short term.

J.P. Morgan’s Ken Goldman quoted Maple Leaf Foods CEO Michael McCain, who told investors last week that the company is seeing a “marked slowdown” in the plant-based protein category.

“We are not yet sure who is right — Beyond Meat or Maple Leaf Foods — but when we hear commentary like this, it’s hard to be completely confident about the future of the category,” Goldman stated.

Jefferies analyst Rob Dickerson predicted that Beyond Meat will likely remain under pressure until there is a better understanding of plant-based meat’s long-term development, consumption rates and the competitive landscape.

Disclaimer: We have no position in any of the companies mentioned and have not been compensated for this article.