Beyond Meat missed quarterly earnings estimation Thursday because of higher costs, and stated Executive Chair Seth Goldman would suspend his executive status, while remaning chairperson of the committee, sending shares down 10% in after-hours trade.
The plant-based meat firm stated deals with retailers and restaurants considerably shrank its loss and boosted sales. However, Beyond Meat posted a 1 cent per share loss during the interval, versus analyst expectations of a 1 cent profit, based on Refinitiv IBES data.
Beyond Meat has never posted a yearly profit because of spending on R&D, marketing, and its fast-paced worldwide expansion. In the most recent quarter, the company’s restructuring and some administrative prices had been higher.
The El Segundo, California-based firm – whose Beyond Burgers and Sausages are driving a global craze for plant-based meat products – made a number of high-profile agreements in 2019 with fast-food chains along with McDonald’s and Dunkin’ Brands. As consumers grow more-and-more health-conscious and anxious about the environmental impact of industrial animal farming, the plant-based meat market is expected to reach $140 billion mark.
The corporation’s share price has grown four-fold since its IPO in May; however, short-sellers and many buyers view the stock as overvalued following its massive climb, now trading at 232.8 times anticipated earnings.
Beyond Meat’s products are sold by retailers, including Walmart and Amazon.com’s Whole Foods.