The Strategist

Beyond Meat shares plummet by 28% after poor reporting

11/11/2020 - 07:36

The producer of artificial meat products Beyond Meat presented its financial report for the third quarter of the year.

The results of which were noticeably worse than analysts predicted. As a result, the company's shares have slipped 28 per cent at over-the-counter trading.

According to the report, Beyond Meat's revenue for the third quarter was $94.4 million, 2.7% better than last year's result. 

In addition, the company ended the quarter with a net loss of $19.3 million or $0.31 per share, while analysts expected a loss of $0.05 per share.

The company itself attributed this failure to the COVID-19 pandemic, which only began to have a full impact on Beyond Meat business in the third quarter. 

While fast food restaurants were actively purchasing the company's products in the second quarter, the re-implementation of quarantine measures in many countries has severely affected the already weakened restaurant business, and it has virtually stopped purchasing.