Beyond Meat, Inc. (NASDAQ: BYND) (the “Company”) today announced
that the Company is reducing its third quarter net revenues
outlook. The Company is proceeding through its quarterly close, and
based on preliminary results, the Company now expects third quarter
net revenues of approximately $106 million as compared to prior
guidance of $120 million to $140 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.
While the Company continues to study the drivers
behind this quarter’s performance, the Company believes demand was
impacted by broader ongoing macro and micro-economic factors,
including among others, the effects of the COVID-19 Delta variant.
The Company also experienced a decrease in retail orders that
persisted longer than expected from a Canadian distributor
coinciding with the reopening of restaurants, expected incremental
orders that did not materialize from a change in a distributor
servicing one of the Company’s large customers, observed delays in
distribution expansion and shelf resets believed to be driven by
customer labor shortages, and incurred shortfalls at certain U.S.
foodservice customers believed to be driven by the effects of the
COVID-19 Delta variant.
The Company further experienced challenges in
operations that led to unfulfilled orders, with severe weather as a
key driver resulting in the loss of potable water for two weeks in
one Pennsylvania facility and water damage to inventory in
another.
These impacts were partially offset by
accelerated orders from an international customer during the third
quarter.
Preliminary results remain subject to the
completion of normal quarter-end accounting procedures and
adjustments and therefore are subject to change. Full third quarter
results will be discussed during the upcoming Beyond Meat earnings
conference call, scheduled for Wednesday, November 10, 2021 after
market close at 5:00 p.m. ET. Investors interested in participating
in the live call can dial 201-389-0879 or listen to a simultaneous,
live webcast available on the Investors section of the Company’s
website at www.beyondmeat.com. The webcast will also be
archived.
About Beyond MeatBeyond Meat,
Inc. (NASDAQ: BYND) is one of the fastest growing publicly-traded
food companies in the United States, offering a portfolio of
revolutionary plant-based proteins made from simple ingredients
without GMOs, bioengineered ingredients, hormones, antibiotics or
cholesterol. Founded in 2009, Beyond Meat products are designed to
have the same taste and texture as animal-based meat while being
better for people and the planet. Beyond Meat’s brand commitment,
Eat What You Love™, represents a strong belief that there is a
better way to feed our future and that the positive choices we all
make, no matter how small, can have a great impact on our personal
health and the health of our planet. By shifting from animal-based
meat to plant-based protein, we can positively impact four growing
global issues: human health, climate change, constraints on natural
resources and animal welfare. As of June 2021, Beyond Meat had
products available at approximately 119,000 retail and foodservice
outlets in over 80 countries worldwide. Visit www.BeyondMeat.com
and follow @BeyondMeat, #BeyondBurger and #GoBeyond on Facebook,
Instagram, Twitter and TikTok.
Forward Looking
StatementsCertain statements in this release constitute
“forward-looking statements" within the meaning of the federal
securities laws. These statements are based on management's current
opinions, expectations, beliefs, plans, objectives, assumptions and
projections regarding financial performance, prospects, future
events and future results, including ongoing uncertainty related to
the COVID-19 pandemic, including the ultimate duration, magnitude
and effects of the pandemic and, in particular, the impact to the
foodservice channel, operations and supply chains, growth trends,
our international expansion plans, market share, new and existing
customers and expense trends, among other matters, and involve
known and unknown risks that are difficult to predict. In some
cases, you can identify forward-looking statements by the use of
words such as “may,” “could,” “expect,” “intend,” “plan,” “seek,”
“anticipate,” “believe,” “estimate,” “predict,” “outlook,”
“potential,” “continue,” “likely,” “will,” “would” and variations
of these terms and similar expressions, or the negative of these
terms or similar expressions. These forward-looking statements are
only predictions, not historical fact, and involve certain risks
and uncertainties, as well as assumptions. Forward-looking
statements should not be read as a guarantee of future performance
or results, and will not necessarily be accurate indications of the
times at, or by which or whether, such performance or results will
be achieved. Actual results, levels of activity, performance,
achievements and events could differ materially from those stated,
anticipated or implied by such forward-looking statements. While
Beyond Meat believes that its assumptions are reasonable, it is
very difficult to predict the impact of known factors, and in
particular, the COVID-19 pandemic, and, of course, it is impossible
to anticipate all factors that could affect actual results. There
are many risks and uncertainties that could cause actual results to
differ materially from forward-looking statements made herein
including, but not limited to, the effects of global outbreaks of
pandemics or contagious diseases or fear of such outbreak (such as
COVID-19), including on our ability to expand in new geographic
markets or the timing of such expansion efforts; a resurgence of
COVID-19 and the discovery and spread of COVID-19 variants, such as
the Delta variant, which could slow, halt or reverse the reopening
process, or result in the reinstatement of social distancing
measures, business closures, restrictions on operations,
quarantines and travel bans; the impact of adverse and uncertain
economic and political conditions in the U.S. and international
markets; the volatility of capital markets and other macroeconomic
factors; estimates of our expenses, future revenues, capital
requirements and our needs for additional financing; our ability to
effectively manage our growth; our ability to identify and execute
cost-down initiatives intended to achieve price parity with animal
protein; the failure of acquisitions and other investments to be
efficiently integrated and produce the results we anticipate; the
success of operations conducted by joint ventures; the effects of
increased competition from our market competitors and new market
entrants; changes in the retail landscape, including the timing and
level of trade and promotion discounts, our ability to grow market
share and increase household penetration, repeat buying rates and
purchase frequency, and our ability to maintain and increase sales
velocity of our products; the timing and success of distribution
expansion and new product introductions in increasing revenues and
market share; the timing and success of strategic partnership
launches and limited time offerings resulting in permanent menu
items; our estimates of the size of market opportunities; our
ability to effectively expand our manufacturing and production
capacity; our ability to accurately forecast demand for our
products and manage our inventory; variations in product selling
prices and costs, and the mix of products sold; our ability to
successfully enter new geographic markets, manage our international
expansion and comply with any applicable laws and regulations,
including risks associated with doing business in foreign
countries, substantial investments in our manufacturing operations
in China and The Netherlands, and our ability to comply with the
U.S. Foreign Corrupt Practices Act or other anti-corruption laws;
the success of our marketing initiatives and the ability to grow
brand awareness, maintain, protect and enhance our brand, attract
and retain new customers and grow our market share; our ability to
attract, maintain and effectively expand our relationships with key
strategic foodservice partners; our ability to attract and retain
our suppliers, distributors, co-manufacturers and customers; our
ability to procure sufficient high-quality raw materials to
manufacture our products; the availability of pea and other protein
that meets our standards; our ability to diversify the protein
sources used for our products; our ability to differentiate and
continuously create innovative products, respond to competitive
innovation, and achieve speed-to-market; our ability to
successfully execute our strategic initiatives; the volatility
associated with ingredient, packaging and other input costs; the
impact of inflation across the economy, including higher food,
grocery, transportation and fuel costs; real or perceived quality
or health issues with our products or other issues that adversely
affect our brand and reputation; our ability to accurately predict
taste preferences, trends and demand and successfully innovate,
introduce and commercialize new products and improve existing
products, including in new geographic markets; significant
disruption in, or breach in security of our information technology
systems and resultant interruptions in service and any related
impact on our reputation; management and key personnel changes, the
attraction and retention of qualified employees and key personnel,
and our ability to maintain our company culture as we grow; the
effects of natural or man-made catastrophic events particularly
involving our or any of our co-manufacturers’ manufacturing
facilities or our suppliers’ facilities; the impact of marketing
campaigns aimed at generating negative publicity regarding our
products, brand and the plant-based industry category; the
effectiveness of our internal controls; our indebtedness and
ability to pay such indebtedness; our ability to meet our
obligations under our campus headquarters lease, the timing of
occupancy and completion of the build-out of our space, cost
overruns and the impact of COVID-19 on our space demands; changes
in laws and government regulation affecting our business, including
Food and Drug Administration and Federal Trade Commission
governmental regulation, and state, local and foreign regulation;
new or pending legislation, or changes in laws, regulations or
policies of governmental agencies or regulators, both in the U.S.
and abroad, affecting plant-based meat, the labeling or naming of
our products, or our brand name or logo; the financial condition
of, and our relationships with our suppliers, co-manufacturers,
distributors, retailers and foodservice customers, and their future
decisions regarding their relationships with us; the ability of our
suppliers and co-manufacturers to comply with food safety,
environmental or other laws and regulations; seasonality; the
sufficiency of our cash and cash equivalents to meet our liquidity
needs and service our indebtedness; economic conditions and the
impact on consumer spending; outcomes of legal or administrative
proceedings, or new legal or administrative proceedings filed
against us; our, our suppliers’ and our co-manufacturers’ ability
to protect our proprietary technology and intellectual property
adequately; the impact of tariffs and trade wars; foreign exchange
rate fluctuations; and the risks discussed under the heading “Risk
Factors” in the Company’s Annual Report on Form 10-K for the year
ended December 31, 2020 and the Company’s Quarterly Report on Form
10-Q for the quarter ended July 3, 2021 filed with the SEC on
August 12, 2021, and the Company’s Quarterly Report on Form 10-Q
for the quarter ended October 2, 2021 to be filed with the SEC, as
well as other factors described from time to time in the Company's
filings with the SEC. All forward-looking statements attributable
to us or persons acting on our behalf are expressly qualified in
their entirety by the cautionary statements set forth above. Such
forward-looking statements are made only as of the date of this
release. Beyond Meat undertakes no obligation to publicly update or
revise any forward-looking statement because of new information,
future events, changes in assumptions or otherwise, except as
otherwise required by law. If we do update one or more
forward-looking statements, no inference should be made that we
will make additional updates with respect to those or other
forward-looking statements.
ContactsMedia:Shira Zackai 917-715-8522
shira.zackai@beyondmeat.com
Investors:Fitzhugh Taylor and Raphael
Grossbeyondmeat@icrinc.com
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