Beyond Meat released its second-quarter results after Thursday's trading. The company's loss per share exceeded market expectations for the quarter as rising costs and business investments dragged down profit margins.
Beyond Meat reported a loss of 31 cents per share in the second quarter, with a market expected loss of 24 cents, revenue rose 31.8 percent to $149.4 million, and the market expected $140.8 million.
The company said losses accelerated due to investments to support its expansion efforts, such as increased labour and marketing spending, as well as higher freight costs.
Looking ahead to the third quarter, Beyond Meat expects revenue of $1.2 billion to $140 million, below analysts' expectations of $153 million.
Ethan Brown, the company's chief executive, said in a statement that the recent increase in COVID-19 cases may disrupt the demand pattern and that it is still appropriate to be cautious for the rest of the year.
Beyond Meat shares fell 4 per cent in after-hours trading after the results were announced.