Oct 22 (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
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