Shares in Beyond Meat plummet after slashing forecast

Shares in Beyond Meat were down 10.3 per cent on the week and shares in Just Eat Takeaway and Else Nutrition were also down, amid news on the future of their respective businesses.

Shares in Beyond Meat plummeted this week by 10.3 per cent to $95.80 after slashing its third-quarter sales forecast, blaming waning demand from grocers and staff shortages leading to delays in restocking shelves.

Beyond Meat said it was cutting its third-quarter net revenue outlook after reviewing its preliminary results.

On the news, its shares fell 11.8 per cent to $95.80 and were down 10.3 per cent in the week.

Beyond Meat said it now expects revenue of roughly $106 million, up around 12 per cent year–on–year.

This is significantly below the previous guidance issued less than three months ago of between $120 million and $140 million, or growth of 27 per cent to 48 per cent year-on-year.

Beyond Meat, founded in 2009, said that new orders from a distributor serving one of its major customers had not materialised and inclement weather had caused damage to stock stored at one of its facilities.

Its cut on its forecast comes just a few months after Beyond Meat said its customers were placing smaller orders due to uncertainly about coronavirus.

Shares in Beyond Meat are down around 25 per cent on the year, giving it a current market value of $5.9bn

Meanwhile, shares in Just Eat Takeaway were down 2.11 per cent to 5,741p after its boss said that he expected Grubhub-which Just Eat Takeaway purchased for $7.3 billion in June- to be part of a consolidation of the US food delivery market.

"Over time there will inevitably be consolidation in the wider U.S. on-demand delivery market, as various players combine to optimise the last mile," Jitse Groen told investors in a presentation.

But Groen rejected the notion of selling Grubhub.

"Grubhub is fresh," he said, but added that "anything that makes Grubhub a stronger player - we'll look at it".

Investors want the company to sell parts of its business to make it more competitive in the US, where it competes against a slew of rival including Uber Eats and DoorDash. Shares in Just Eat Takeaway are down around 25 per cent this year.

Finally, shares in Else Nutrition were down 15.6 per cent to CAD$1.41 after it announced the closure of a $17.3m fundraise.

The maker of plant-based baby and children’s food products says it is hoping to use the funds to set up a manufacturing facility, acquire inventory, fund research and development including clinical studies, fund sales and marketing and for general corporate purposes.