Shares of Beyond Meat tumbled more than 13% in morning trading Friday after the company warned it expects to report lower revenue for the third quarter than previously forecast.
Beyond said it expects net sales of $106 million, below its prior outlook of $120 million to $140 million. Wall Street analysts surveyed by Refinitiv were anticipating revenue of $133.1 million for the quarter. The company did not release an outlook for its quarterly earnings, but analysts were expecting a loss of 29 cents per share ahead of Friday’s announcement.
The company said multiple factors caused the lag in sales, including the impact of the Covid-19 delta variant. Beyond said a Canadian distributor decreased retail orders for longer than expected as its restaurants reopened, and it had expected incremental orders that didn’t materialize after one of its large customers changed distributors. Labor shortages also likely delayed distribution expansion and shelf resets, the company said.