Beyond Meat Records Increase In Overall Net Revenues For Second Quarter; Impossible Foods Appoints New CFO Ahead Of Potential Stock Market Listing
Beyond Meat Inc has recorded an increased in overall net revenues for the second quarter. However, Beyond Meat said that restaurants are placing "more conservative" orders for its plant-based burge...
Beyond Meat Inc has recorded an increased in overall net revenues for the second quarter.
However, Beyond Meat said that restaurants are placing "more conservative" orders for its plant-based burgers due to uncertainty over to the Delta variant of COVID-19, leading the company to forecast third quarter revenue below estimates.
"Given the recent uptick of COVID-19 cases, which could disrupt demand patterns, we believe caution for the balance of the year generally remains appropriate," CEO Ethan Brown said in a statement.
The company said it expects third-quarter net revenue of $120 million to $140 million, substantially lower than analysts' estimates of $153.3 million, according to IBES data from Refinitiv.
Widespread labour pressure delayed at least one product launch until the first part of next year, Brown said during a call with analysts.
Restaurants are placing "more conservative" orders due to their own staffing challenges and uncertainty about the Delta variant, which has also prompted European operators to pause or cancel promotions, Brown said.
In the second quarter ended July 3, the faux beef and chicken maker reported that sales in restaurants, dining halls and other food service venues were finally back in growth mode after taking a big hit during the pandemic, when dining rooms shuttered and restaurants streamlined menus.
Increased restaurant sales drove overall net revenues up 31.8% to $149.4 million in the second quarter, exceeding estimates of $140.8 million.
Even so, Beyond Meat also reported a bigger-than-expected loss, with earnings per share of negative $0.31 versus estimates of minus $0.24.
It also saw Dunkin' Brands drop its Beyond Sausage sandwich at most locations as chains simplified menus, though it launched new dishes with Panda Restaurant Group, A&W Canada, Pizza Hut in the UK and KFC in China.
It revamped its faux hamburger product and brought back a chicken offering with the launch of plant-based chicken tenders in July.
Retail sales rose in international markets but fell 14% in the United States from the same quarter last year, when Americans hoarded groceries as lockdowns spread.
Impossible Foods Appoints New CFO Ahead Of Potential Stock Market Listing
Impossible Foods has appointed insider David Borecky as its chief financial officer, ahead of a potential stock market listing that could value the Beyond Meat rival at approximately $10 billion.
Borecky, who had been serving as the interim finance chief, had earlier held positions at fintech giant Stripe and payments services company Square Inc. He had played a crucial role in Square's initial public offering in 2015.
Reuters reported in April that Redwood City, California-based Impossible Foods was seeking to go public through an IPO or a merger with a special purpose acquisition company.
The company has also announced the appointment of Leilani Gayles as its chief people officer. Gayles joins the company after a decade at baseball team the San Francisco Giants.
Founded in 2011, Impossible Foods is backed by high-profile names including Microsoft Corp co-founder Bill Gates, Google Ventures and UBS Group AG.
It has received nearly $1.5 billion in funding so far, thanks to the rising popularity of the plant-based meat industry due to environmental and ethical concerns among consumers.