Beyond Meat Inc.’s stock initially tumbled 15% in extended trading Thursday after the company came up short on quarterly estimates. But exclusive deals with McDonald’s Corp. and Yum! Brands Inc., announced just minutes after the earnings release, changed that quickly, sending Beyond shares up 11%, a swing of 26%.
By the middle of a conference call late Thursday, the stock had dipped 3%, presumably ending the roller coaster ride.
The plant-based protein company reported an adjusted net loss of $21.4 million, or 34 cents a share, compared with a net loss of $452,000, or a penny a share, in the year-ago quarter.
Revenue inched up 3.5% to $101.9 million from $98.5 million a year ago. Analysts surveyed by FactSet had expected a net loss of 14 cents a share on revenue of $103.6 million.
“Food service remains highly challenged,” Beyond Meat Chief Executive Ethan Brown said during a conference call with analysts. “There is something clearly going on in regard to COVID. That does not mean we will not see a good recovery” in retail and food service.
The financial results initially sent shares of Beyond BYND,
Those shares dramatically rebounded, however, when Beyond later announced a three-year agreement with McDonald’s MCD,
Another deal with Yum YUM,
Beyond is feeling the squeeze competitively from Impossible Foods Inc., which this month announced its third double-digit price-cut in less than a year — 20% off patties (to $5.49) and 12-oz. packages (to $6.99) in thousands of stores that include Kroger Co. KR,
Impossible’s aggressive pricing could complicate Beyond Meat’s efforts to turn turn its first annual profit since its IPO in 2019.
Beyond Meat’s shares temporarily surged in late January, following news that it had reached a deal to make snacks and beverages with PepsiCo. Inc. PEP,
