What is the story about?
March 31 (Reuters) - Faux meat maker Beyond Meat missed Wall Street estimates for fourth-quarter sales and posted a larger-than-expected operating loss on Tuesday due to sluggish demand for its higher-priced processed food products.
Beyond Meat has struggled to revive the initial enthusiasm for its products as budget-conscious consumers opt for cheaper, fresh animal-based alternatives over processed alternatives, while it also battles mounting costs.
Shares of the company, which saw a meme-stock frenzy
last year, were down about 8% in extended trading.
Here are some key details:
* The company's quarterly revenue declined 19.7% to $61.6 million, compared with analysts' average estimate of $62.6million, according to data compiled by LSEG. * For the quarter ended December 31, it also reported anadjusted EBITDA loss of $69 million, wider than estimates of a$19.8 million loss and $26 million a year ago. * Results reflect "ongoing headwinds in the plant-basedmeat category as well as the financial impact of severalrestructuring charges," CEO Ethan Brown said. * Beyond Meat said it was unable to estimate when its annualreport will be filed. Earlier this month, the company said itwould delay its annual report after identifying materialweaknesses in controls related to inventory accounting,including excess or obsolete stock. * The company had also delayed the release of its quarterlyresults, citing the need for additional time to completeinternal processes. It had similarly delayed its third-quarterreport last year while assessing an impairment charge tied tocertain assets. * The company, which had withdrawn its annual sales targetin May last year, had recorded revenue growth following itsblockbuster public debut in 2019 due to aggressive marketing andinnovation. * Beyond sees first quarter net revenue between $57 millionand $59 million, below expectations of $66.8 million.(Reporting by Neil J Kanatt in Bengaluru; Editing by Leroy Leo)
