Beyond Meat (NASDAQ:BYND) has taken another dive after warning on third-quarter sales.
The alternative meat company fell 12% to close out last week after blaming the COVID-19 delta variant and a drop in retail orders for weaker revenue than expected ahead of its official quarterly release scheduled for early November.
The stock is down nearly 60% since a January peak and still well off an all-time high above $230 set in mid-2019. It traded at less than $96 on Friday.
Beyond may have been unfairly maligned, according to Boris Schlossberg, managing director of FX strategy at BK Asset Management.
"The company is really misunderstood here in some ways," Schlossberg told the media on Friday.
"There’s a future for the company but it really doesn’t lie in meat. Its meat product is OK, let’s admit it. … The future of all of these products is actually going to be much more in synthetic poultry and pork."
He said the texture and taste is easier to replicate with poultry and pork compared with beef. Beyond launched its Beyond Chicken line in Canadian and U.S. restaurants in July and expanded it to select grocery stores this month.
Schlossberg added that Beyond’s success lies in its wholesale partnerships rather than retail sales.
Retail sales still make up the bulk of revenue for Beyond – that segment generates 74% of total sales, while food service sits at 26%.
BYND shares fell $2.91, or 3%, to $92.89
