09 Aug 2020
Beyond Meat racks up high COVID-19 operational costs, shares fall 7%
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(Reuters) – Beyond Meat Inc’s quarterly results showed on Tuesday that the plant-based burger maker spent more than expected on dealing with the fallout of weak demand from restaurants, sending shares down about 7% after the bell.
El Segundo, California-based Beyond Meat typically gets about half its global sales from restaurants, many of which closed stores and limited menus during the quarter due to COVID-19. But as fast-food orders slumped, demand from grocery shoppers on lockdown surged and Beyond Meat had to spend nearly $6 million to reroute products to retailers like Walmart and Costco
“We had to figure out how to continue to grow in an environment where half our business, essentially, deteriorated,” Chief Executive Ethan Brown said.
Sales fell nearly 61% at the company’s U.S. food service business, which supplies plant-based patties, chicken and sausages to fast-food chains like KFC and Dunkin Brands. Revenue from international restaurants more than halved to $7.2 million.