Beyond Meat: Updates Third Quarter 2021 Outlook

El Segundo / CA. (bmi) Beyond Meat Inc. announced that the Company is reducing its third quarter net revenues outlook. The Company is proceeding through its quarterly close, and based on preliminary results, the Company now expects third quarter net revenues of approximately USD 106 million as compared to prior guidance of USD 120 million to USD 140 million. Although the Company’s previous third quarter guidance anticipated a sequential decline in net revenues, the deceleration was larger than anticipated. Multiple factors contributed to the shortfall during the quarter.

While the Company continues to study the drivers behind this quarter’s performance, the Company believes demand was impacted by broader ongoing macro and micro-economic factors, including among others, the effects of the Covid-19 Delta variant. The Company also experienced a decrease in retail orders that persisted longer than expected from a Canadian distributor coinciding with the reopening of restaurants, expected incremental orders that did not materialize from a change in a distributor servicing one of the Company’s large customers, observed delays in distribution expansion and shelf resets believed to be driven by customer labor shortages, and incurred shortfalls at certain U.S. foodservice customers believed to be driven by the effects of the Covid-19 Delta variant.

The Company further experienced challenges in operations that led to unfulfilled orders, with severe weather as a key driver resulting in the loss of potable water for two weeks in one Pennsylvania facility and water damage to inventory in another. These impacts were partially offset by accelerated orders from an international customer during the third quarter. Preliminary results remain subject to the completion of normal quarter-end accounting procedures and adjustments and therefore are subject to change. Full third quarter results will be discussed during the upcoming Beyond Meat earnings conference call, scheduled for Wednesday, November 10, 2021 after market close.