By Sam Boughedda
Investing.com — Shares of Beyond Meat Inc (NASDAQ:BYND) took a tumble on Friday after the plant-based food company lowered its third-quarter net revenue outlook.
Beyond shares fell over 13% at the open. They are currently sitting at around the $96.10 level, down over 11.5%.
Based on preliminary results, Beyond said it now expects third-quarter net revenue of approximately $106 million compared to prior guidance of $120 million to $140 million. Wall Street analysts were anticipating its revenue to be $133.1 million.
"Although the company's previous third-quarter guidance anticipated a sequential decline in net revenues, the deceleration was larger than anticipated. Multiple factors contributed to the shortfall during the quarter," stated Beyond.
The company said that it believes demand was affected by continuing macro and micro-economic factors, such as the effects of the Covid-19 Delta variant.
Other factors include a decrease in retail orders that persisted longer than expected from a Canadian distributor, expected incremental orders that did not materialize from a change in a distributor servicing one of the company's large customers, and labor shortages.
Beyond said it also experienced difficulties in operations that resulted in unfulfilled orders, with severe weather as a fundamental driver.
However, the various challenges were partially offset by accelerated orders from an international customer during Q3.
Thursday saw Beyond Meat shares gain after a report from analysts at BTIG said McDonald's (NYSE:MCD) chances of adding the McPlant burger to stores nationwide were "fairly high." BTIG estimates that adding the burger to McDonald's menus in the U.S. could increase Beyond Meat's revenue by $200 million.