To no ones surprise, Beyond Meat posted an atrocious loss for the third quarter with lower-than-expected sales, weakened by low consumer sentiment because no one wants to eat rubber tires for dinner. You didn't need to wait for quarter 3 to know that, that answer could have been found by asking anyone puking up a BYND meat patty in the back dumpster of a Dunkin Donuts.
Shares plunged 29% as sales have stalled due to declining restaurant demand and people no longer needing to stockpile the fridge as if it were the apocalypse. Net sales rose 2.7% to $94.4 million, missing expectations of $132.8 million. To add salt to the wound, McDonald's plotted against them by launching a new line of plant-based meat, the McPlant. It sounds like something you'd eat if you were a herbivore, which I guess is the point. I want to rip on the name, but I kind of like it. I'm not sure if I'm weird or I'm just a slave to McDonalds marketing.
Imagine what a horrible day it must have been for Beyond Meat executives. Having had poor earnings all the while getting a knife in the back by your best friend. Many reports called the move by McDonald's as the end to Beyond Meat's partnership with the company, but Chief Executive Officer Ethan Brown said that was “greatly exaggerated”. You keep telling yourself that, Ethan.
“Our relationship with McDonald’s is good. It’s really strong. Our work there on behalf of what they’re doing continues,” Brown said. McDonald’s declined to comment. Move on, bro.
After a nearly 200% rise in retail sales in the last quarter, growth slowed down to 40.5% in the third quarter. Consumers who had stocked up their freezers with Beyond Meats sausages, burgers, and meatballs at the start of the pandemic are either disagreeing with me or are still trying to figure out what to do with all their fake meat.
The company was also sucker-punched by a sharp drop in sales at locations which include restaurants, corporate catering services and universities as they fell 11%. Piled delays of launches with their quick-service restaurant partners, along with a plague have severely crippled them. It appears like the company is getting trampled on by a group full of middle school bullies. Do they have anything going for them? I seriously must ask, because no one I know likes their products. I could see companies ditch them because of their subpar food (although just as I edit this, Pizza Hut rubs fronts with them). They've been around since 2012, and last year was the first time I've ever heard of them. They have stepped up their advertising, but if they don't step up the flavor of their food, they'll just end up in the trash along with stomach bile and whatever else you ate that day.
**Not a financial advisor. All articles are opinion only.
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