Beyond Meat Share Just Took a Nose Dive

It was a disappointing day for meat alternative company Beyond Meat, which up until now had seen some stellar growth in the market.

The company posted mixed quarterly results and Wall Street wasn’t too happy digesting the numbers. The company also announced a secondary share offering of 3.25 million additional shares.

Shares fell 13% on the news in extended trading on Monday. Despite this, shares have still seen a jump of 788% since the company went public back in May.

For the second quarter, Beyond Meat reported earnings per share of a loss of 24 cents. This is compared to the loss of 8 cents that was expected. Revenue at $67.3 million was ahead of the $52.7 million expected according to analysts surveyed by Refinitiv.

Looking ahead, Beyond Meat expects the second and third quarters to be its strongest. It has raised its forecast for revenue in the third quarter and its full year 2019 revenue outlook. The company expects to net sales for the full year to reach $240 million.

“We’re being very conservative and viewing this as a floor,” said CEO Ethan Brown to analysts back in June.
Brown said on the earnings call, “We are pleased to report very strong second quarter operational and financial progress. In the second quarter, we continue to experience robust, broad based momentum and remain excited about the enthusiasm in customers and consumers alike for Beyond Meats, plant-based meat products. Where in the second quarter, we expanded our sales in both retail and food service channels, domestically and abroad, continue to invest in and realize the benefits of our innovation program, while growing our supply chain and operational capabilities. We believe our momentum demonstrates the mainstream consumers, increasing appetite for our plant-based meats.”

“We are very pleased with our strong second quarter financial results. At Beyond Meat, we have made meaningful investments to build a revolutionary business as we expand in the U.S. and multiple markets internationally. While this approach requires strong investment in the short-term, we believe it creates the foundation for us to leverage and scale in the medium to long-term. We believe Beyond Meat is well positioned for growth in the U.S. and internationally,” stated Seth Goldman, the company’s executive chairman.

Disclaimer: We have no position Beyond Meat Inc. (NASDAQ: BYND) and have not been compensated for this article.