(Reuters) -Beyond Meat Inc forecast fourth-quarter revenue below estimates after its results missed expectations on Wednesday, as demand from grocery stores that sell its plant-based meat products weakened, driving its shares down 16% in extended trading.
The company, which generates the bulk of its revenue from retailers, had cut its third-quarter revenue forecast last month as it took a hit from fewer people stockpiling plant-based burgers and sausages at home after they returned to dining out.
Sales to U.S. retail stores fell 15.6% to $52.4 million in the third quarter, Beyond Meat said, while those to U.S. restaurants fell 7.3% to $15.1 million.
The company said in August that restaurants were placing “more conservative” orders due to their own staffing challenges and uncertainty about the Delta variant of COVID-19, which had also prompted some European operators to pause or cancel promotions.
The company said it expects fourth-quarter net revenue of $85 million to $110 million, compared with analysts’ estimates of $131.6 million, according to IBES data from Refinitiv.
Several other issues, including a labor shortage that has led to delays in restocking shelves and supply chain disruptions, are also hitting its business, Beyond Meat said.
Net revenue rose 12.7% to $106.4 million in the three months ended Oct. 2, but missed estimates of $109.2 million.
Excluding certain items, the company reported a loss of 87 cents per share, compared with analysts’ estimates of a loss of 39 cents per share.
(Reporting by Uday Sampath in Bengaluru; Editing by Vinay Dwivedi)
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