Stock Market Cafe
  • Home
  • Trading News
  • Email Whitelisting
  • Privacy Policy
  • Home
  • Trading News
  • Email Whitelisting
  • Privacy Policy
No Result
View All Result
Stock Market Cafe
No Result
View All Result
Home Trading News

Beyond Meat stock tumbles 17% as analysts worry about the company’s long-term growth

by
November 11, 2021
in Trading News
0
0
SHARES
0
VIEWS
Share on FacebookShare on Twitter

RELATED POSTS

FDA advisors recommend replacing original Covid vaccine with bivalent omicron shots for all doses

Luxury retailer LVMH is optimistic as it sees Chinese shoppers and tourists returning

A package of Beyond Meat beef crumbles is displayed for a photograph in Tiskilwa, Illinois, April 23, 2019.

Daniel Acker | Bloomberg | Getty Images

Beyond Meat’s stock cratered 17% in morning trading Thursday as Wall Street voiced doubts about the company’s growth prospects.

The plant-based meat maker reported disappointing third-quarter results after the bell on Wednesday. Its loss was wider than expected, while revenue fell short of expectations, even after a warning from the company last month. Beyond also issued a gloomy outlook that indicated sales wouldn’t snap back immediately.

Jefferies called it “the quarter that likely broke the camel’s back.” Bernstein analyst Alexia Howard downgraded the stock, telling investors to not buy the dip.

“We view the results as further evidence that Beyond’s business is reaching market saturation faster than expected and that the company has deeper problems that won’t be easy to fix,” Credit Suisse analyst Robert Moskow wrote in a note.

Beyond blamed a number of factors for its weak quarter, including severe weather, the delta variant and restaurants’ labor challenges. CEO Ethan Brown told investors that the problems were largely short term.

However, analysts are more skeptical. J.P. Morgan’s Ken Goldman quoted Maple Leaf Foods CEO Michael McCain, who told investors last week that the company is seeing a “marked slowdown” in the plant-based protein category, which could suggest a shift from the high growth rates expected by the industry.

“We are not yet sure who is right — Beyond Meat or Maple Leaf Foods — but when we hear commentary like this, it’s hard to be completely confident about the future of the category,” Goldman wrote.

Brown also said Wednesday evening that he’s optimistic about 2022. But the company hasn’t convinced analysts that’s true. Bank of America Securities analyst Bryan Spillane wrote in a note that next year’s results will depend heavily on the launch of McDonald’s McPlant burger and its partnerships with other national chains, such as Yum Brands’ Pizza Hut. McDonald’s is currently conducting an operational test of the McPlant in a handful of U.S. restaurants and has begun selling the burger in a few international markets.

Spillane also said an area of concern is that U.S. trial and demand of meat alternatives has slowed, particularly in grocery stores.

Jefferies analyst Rob Dickerson predicted the stock will likely remain under pressure until there is a better understanding of plant-based meat’s long-term development, consumption rates and the competitive landscape. Including Thursday’s tumble, shares of Beyond have slid 38% this year, giving it a market value of $4.88 billion.

ShareTweetPin

Related Posts

FDA advisors recommend replacing original Covid vaccine with bivalent omicron shots for all doses

by
January 26, 2023
0

The new COVID-19 booster which includes protection for Omicron at AltaMed Health Services in South Gate on Thursday, October 6,...

Luxury retailer LVMH is optimistic as it sees Chinese shoppers and tourists returning

by
January 26, 2023
0

In this article MC-FR Follow your favorite stocksCREATE FREE ACCOUNT Bernard Arnault, Chairman and CEO of LVMH Moet Hennessy Louis...

Intel shares drop on weak quarterly results and expectations for another quarter of losses

by
January 26, 2023
0

In this article INTC Follow your favorite stocksCREATE FREE ACCOUNT Intel CEO Pat Gelsinger stands in front of a cathedral...

Bed Bath & Beyond warns it can’t pay down debts, defaults on credit line

by
January 26, 2023
0

In this article BBBY Follow your favorite stocksCREATE FREE ACCOUNT Signage is seen through an overturned shopping cart outside a...

Hasbro warns of weak holiday quarter results, cuts 15% of its workforce

by
January 26, 2023
0

In this article HAS Follow your favorite stocksCREATE FREE ACCOUNT Game maker Hasbro Justin Sullivan | Getty Images Shares of...

Next Post

Stocks making the biggest moves midday: Rivian, Bumble, Disney, Alibaba and more

Companies that miss on earnings are getting pummeled in sign that stocks are priced for perfection

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

email

Get the daily email about stock.

Please Enter Your Email Address:

By opting in you agree to our Privacy Policy. You also agree to receive emails from us and our affiliates. Remember that you can opt-out any time, we hate spam too!

MOST VIEWED

  • Crocs sees fourth-quarter sales up 42%, CEO Andrew Rees says 2021 was ‘exceptional year’

    0 shares
    Share 0 Tweet 0
  • Biden didn’t accept Putin’s ‘red lines’ on Ukraine – here’s what that means

    0 shares
    Share 0 Tweet 0
  • Buying a car from the factory sounds expensive, but it can actually save you money. Here’s how to do it.

    0 shares
    Share 0 Tweet 0
  • The states that won’t tax military retirement in 2022

    0 shares
    Share 0 Tweet 0
  • Roth TSP vs. Roth IRA: How Do They Compare?

    0 shares
    Share 0 Tweet 0
  • Home
  • Trading News
  • Email Whitelisting
  • Privacy Policy
All rights reserved by www.stockmarket-cafe.com
No Result
View All Result
  • Home
  • Trading News
  • Email Whitelisting
  • Privacy Policy

All rights reserved by www.stockmarket-cafe.com