Beyond Meat Inc. shares slid 14% in premarket trade Friday, after the plant-based food company issued a revenue warning for the third quarter, citing a range of issues including the highly transmissible delta variant of the coronavirus. "The company also experienced a decrease in retail orders that persisted longer than expected from a Canadian distributor coinciding with the reopening of restaurants, expected incremental orders that did not materialize from a change in a distributor servicing one of the company's large customers, observed delays in distribution expansion and shelf resets believed to be driven by customer labor shortages, and incurred shortfalls at certain U.S. foodservice customers believed to be driven by the effects of the COVID-19 Delta variant," the company said in a statement.
It now expects third-quarter revenue of about $106 million, down from prior guidance of $120 million to $140 million. Other issues that have hurt performance include severe weather and the loss of potable water for two weeks at a Pennsylvania facility and water damage to inventory at another. "These impacts were partially offset by accelerated orders from an international customer during the third quarter," said the statement. Beyond Meat is expecting to report third-quarter earnings on Nov. 10. Shares have fallen 13% in the year to date, while the S&P 500 has gained 21%.