(Reuters) -Beyond Meat Inc on Friday cut its third-quarter revenue forecast, blaming a host of factors including a drop in demand from grocery stores and a labor shortage that led to delays in restocking shelves, sending its shares down 15%.
The company, which gets the bulk of its revenue from retailing, has suffered from a weakening trend of people stockpiling faux meat burgers and sausages at home as they started dining out.
It also said new orders from a distributor servicing one of the company’s large customers did not materialize, while severe weather caused damage to inventory stored at one of its facilities.
Beyond Meat’s forecast cut comes a few months after the company said its restaurant customers were placing more conservative orders due to uncertainty over to the Delta variant of the coronavirus.
The red-hot faux meat startup is also facing other challenges including growing competition from Impossible Foods and others, and surging raw material prices.
Beyond Meat said it now expects third-quarter net revenue of about $106 million, compared with its prior forecast of $120 million to $140 million.
Beyond Meat, which fell 13% this year up to last close, is due to report its full third-quarter results on Nov. 10.
(Reporting by Uday Sampath in Bengaluru; Editing by Shinjini Ganguli)
