Beyond Meat reported a loss of $0.28 per share compared to a profit of $0.05 per share
BYND was also pressured by the news that McDonald’s recent decision to launch a new product called “McPlant
The Beyond Meat share price finally closed almost 17% lower, reaching a 6-month low of $113.26
Beyond Meat (NYSE: BYND) stocks plummeted this week after the company reported worse than expected sales on Monday.
Fundamental analysis: “Shockingly weak” figures
Beyond Meat posted a strong loss for the quarter as demand for the company’s vegetable meat in restaurants and stores declined. The company reported a loss of $0.28 per share excluding items, compared to consensus estimates of a $0.05 profit, and Credit Suisse analyst, Robert Moskow, described the latest results as “shockingly weak”.
Net revenues climbed 2.7% to $94.4 million (71.83 million pounds sterling), far from the consensus estimates of $132.81 million. The “Beyond Meat” inventory was also pressured by the news that McDonald’s recently decided to launch a new product called “McPlant”, which is also a line of vegetable-based meats.
McDonald’s decision to launch its own plant-based burger comes after the end of its partnership with Beyond Meat, which many consider to be the main reason for McDonald’s. However, Ethan Brown, CEO of Beyond Meat, says that this was “greatly exaggerated”.
“Our relationship with McDonald’s is good. It is really strong. Our work there in the name of what they do continues,” he said.
The company added that it was involved in the development of the plant-based pâté for McPlant after working together on the development of McDonald’s new P.L.T. burger.
Beyond Meat would sell its burgers in 7,000 stores owned by CVS health Corp. in the U.S., Brown said, and sell its Beyond Meatballs in 5,000 CVS stores.
After almost 200% growth in retail sales in the previous quarter, Beyond Meat’s sales growth slowed to $40.5 in the third quarter as demand was lower compared to several months ago following the coronavirus outbreak.
Technical Analysis: Stock Crash
The California-based company’s shares plunged 29% in pre-market trading, as sales rose at the worst rate since its IPO in May last year. The BYND share price eventually closed almost 17% lower, reaching a 6-month low of $113.26.
BYND Stock Daily Chart (TradingView)
The sellers managed to force the price action below the 100 DMA mark of $125.87. The zone around the $120 level remains a strong support and an opportunity to buy BYND stocks, while any recovery is likely to be capped by the resistance at $141.00.
The vegetable meat producer Beyond Meat reported lower than expected sales and a substantial loss in the third quarter due to a much weaker demand compared to the previous quarter.