Shares of the Beyond Meat, Inc. (BYND) stock gloomy in the intraday session today after it announced the third quarter 2021 outlook. BYND stock price saw a downtrend of 12.31% to drop at $95.25 a share as of this writing. The stock was performing well in the previous trade and went up by 1.42% at closing. Let’s discuss more about this stock.
Beyond Meat, Inc, founded in 2009 is a food company that is engaged in the manufacturing, marketing, and selling of plant-based meat products in the United States and across the globe. The stock has a market cap of $6.162 billion and a 6,813,409 average trading volume.
BYND stock announces Q3,2021 Outlook:
Beyond Meat today announced a reduced outlook for the third quarter of 2021 after which the stock happened to be red today. BYND stock projected $106 million net revenues for the third quarter of 2021. The company previously provided the revenue guidance of $120 million to $140 million for the third quarter of 2021.
What factors caused the decline in Q3,2021 Outlook?
BYND stock believes that there are many macro and micro-economic factors that impacted the demand in the third quarter of 2021. These factors are given below
- COVID-19 Delta variant caused the decline in the U.S. foodservice customers.
- Decrease in retail orders from Canadian distributor that persisted longer than expected.
- Change in the distributor that was servicing one of the large customers of BYND stock did not materialize the expected incremental orders.
- Due to shortages of customer labor, Beyond stock observed delays in distribution expansion and shelf resets.
- In one Pennsylvania facility, loss of potable water for two weeks resulted due to severe weather conditions.
The above-mentioned impacts were partially offset by increased orders from an international customer of the BYND stock in the third quarter of 2021.
Previous Development of BYND stock:
Beyond stock on September 29, 2021, did announce the launch of plant-based Beyond Breakfast Sausage® Links in its all-grocery stores of Canada. This launch enabled the customers in Canada to enjoy Beyond Meat products any time of day.
The reduced outlook announced by Beyond Meat resulted in the fall in the per-share price of BYND stock. The management needs serious efforts to cope with the factors that impacted the decline in the net revenues for the third quarter of 2021. From an investment perspective, deep research is required before any decision.