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Bloomberg
Beyond Meat fell in early trading despite an increased sales forecast and its first quarterly profit. Investors were bracing for a selloff, when early backers of the faux meat maker will finally be allowed to cash out.
The maker of meatless beef and sausages said third-quarter sales rose 250% to $92 million, outpacing analysts’ average estimate. The company now sees full-year revenue of $265 million to $275 million, compared with a July projection that it would surpass $240 million.
Beyond Meat’s shares dropped for a second straight time after reporting earnings even amid increasingly optimistic projections. In July, the stock fell after the company announced a secondary offering. Now, with early backers expected to cash in on the company’s surge since its IPO, market factors are once again outweighing performance.
Regardless of stock market activity, the sales outlook is rosy. Beyond Meat, based in El Segundo, California, has been steadily adding restaurant partners. The latest is Denny’s.
Dunkin’ restaurants are also taking the company’s plant-based breakfast sausage across the US Retail, restaurant and foodservice channels have all seen increased volumes, the company said.