By Beyond Meat said Monday it is delaying the release of its third-quarter earnings report, citing the need for more time to finalise an impairment assessment tied to certain long-lived assets.
The announcement came a day before the company was scheduled to report results.
The plant-based meat producer said the delay stems from a noncash impairment charge first disclosed in October, which is expected to significantly affect its results for the three months ended September 27.
Beyond Meat noted it is currently unable to “reasonably quantify the amount” of the charge and will postpone its earnings release and conference call to November 11.
The company said additional “time, resources and effort” are required to complete its evaluation.
Beyond Meat stock falls after meme rally fades
The company’s shares were down 13.7% Monday morning at $1.43, giving up gains from a short squeeze in late October that had briefly pushed the stock as high as $7.69.
The volatility had led some traders to dub Beyond Meat a successor to meme stocks such as AMC Entertainment Holdings and GameStop.
Since its 2019 debut as the first pure-play maker of plant-based meat alternatives to go public, Beyond Meat has struggled to translate its early hype into lasting financial performance.
Sales peaked in 2021 but have since fallen sharply as consumer demand for plant-based substitutes weakened.
The company continues to face intense competition from rivals such as Impossible Foods while the broader plant-based category experiences declining sales volumes.
Beyond Meat has yet to post an annual profit, and its cash flow has remained negative.
Analysts surveyed by FactSet expect the company to report third-quarter sales of about $69 million, down from $75 million in the previous quarter and $81 million in the same period last year.
Mizuho analysts, in an October 24 note, cut their price target on the stock to $1.50 from $2, saying Beyond Meat’s fundamentals remain weak despite a surge in retail investor interest.
Launch of new value pack in Canada
Alongside the delay, Beyond Meat announced the launch of a new value pack for its plant-based ground beef alternative, Beyond Beef, across retailers in Canada.
The new “Beyond Beef 2-Pack” is available at more than 1,300 stores nationwide, including Walmart, Sobeys, Loblaws, and IGA.
According to the company, the bulk package contains 2.5 times the amount of its standard product and is designed to make its plant-based option more accessible and affordable.
“This bulk product includes two larger sized units of Beyond Beef, making the great taste and nutrition of our plant-based ground beef product more affordable for Canadians,” said Monique VanWyk, vice president of sales for Canada and Latin America.
Beyond Meat said the new formulation is made from red lentil and faba bean proteins and provides 18 grams of protein per serving, with 1.5 grams of saturated fat sourced from avocado oil.
The company added that the product contains no GMOs or cholesterol.
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