(Bloomberg) -- Beyond Meat Inc., the maker of vegan burgers, sausages and chicken, declined in late trading on Thursday after offering a sales outlook for 2022 that fell short of Wall Street’s expectations -- another sign that the company’s growth is tapering off.
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The company sees full-year net revenue in a range of $560 million to $620 million, below the estimate of $645 million compiled by Bloomberg. The company said that actual results “could differ materially” if assumptions related to the pandemic do not materialize.
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Key Insights
Chief Executive Officer Ethan Brown said sales in 2021 “were dampened by what we believe to be a temporary disruption in U.S. retail growth, for our brand and the broader category.”
Like other packaged-food companies, Beyond Meat is grappling with rising expenses. The company said Thursday that investment in employees, infrastructure and operations in the U.S., Europe and China weighed on gross margin, as did “extensive product scaling activities for key strategic partners.” It also cited increases in manufacturing costs.
The company expects to “substantially moderate the growth of our operating expenses” as it implements its strategy, which involves driving down the cost of production and expanding partnerships with fast-food restaurant chains.
Market Reaction
Beyond Meat shares dropped 8% at 4:11 p.m. New York time. The stock has been trading at its lowest level since its initial public offering in May 2019.
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