NEW YORK, Nov 10 (Reuters Breakingviews) – Beyond Meat (BYND.O) could use a better plan. The plant-based meat maker’s U.S. revenue fell 14% in the third quarter, the first year-over-year drop since it started breaking out sales by region last year. Overall, revenue was $106 million, up almost 13% from the same quarter a year ago, but below analyst estimates, according to Refinitiv data. Shares fell 19% in after-market trading read more .
The $6 billion company run by Ethan Brown isn’t giving investors much hope. Beyond Meat estimates revenue in the fourth quarter will be below Wall Street’s consensus expectations because Covid-19 cases could still impact demand, labor and supply chains.
Beyond Meat’s partnerships with larger companies like McDonald’s (MCD.N) could help read more , but the rollout of the McPlant is limited, in less than 10 U.S. locations, and an analyst from JPMorgan notes that some fast food locations have stopped carrying it. Beyond Meat’s enterprise value of more than 13 times next year’s estimated revenue is higher than companies from Nestlé (NESN.S) to Oatly (OTLY.O). That combination is a recipe for more disappointment. (By Amanda Gomez)
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