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Beyond Meat stocks plunge 7% after greater loss

The shares of Beyond Meat Inc. abruptly ended Tuesday’s steep rise and plunged 7% into the extended session after the vegetable meat producer posted a greater loss.

Company reported a tax loss for the second quarter of $ 10.2 million, or 16 cents per share, compared to a loss of $ 9.4 million, or 24 cents per share, in the year-ago quarter. After adjusting for share-based compensation and other factors, Beyond Meat BYND,
+ 5.90%
reported a loss of $ 1.2 million, or 2 cents per share, compared to $ 2.3 million, or 5 cents a share a year ago. Revenue improved 69% to $ 113.3 million from $ 67.3 million a year ago.

Analysts surveyed by FactSet had expected an adjusted loss of 2 cents per share on revenue of $ 99.2 million.

“While COVID-19 has made the management of our business more complex, we are proud of the way our team has adapted and continues to implement our long-term strategic plan, carefully managing the short-term risk and investing in Beyond Meat’s longer – forward term, ”said Mark Nelson, Chief Financial Officer in a statement announcing the results.

While Beyond Meat acknowledged a “significant slowdown” in its food service business due to COVID-19, resulting in the shutdown or limited operations of many of its customers, the company said it experienced “increasing demand from its retail customers as consumers shifted to more home consumption, which more than offset the drop in sales to food service customers.

Still, the company said that the 2020 financial prospects, which had previously been released on February 27, remain “suspended until further notice.”

The results come amid an escalating distribution race between Beyond and its main rival, Impossible Foods Inc.

Beyond said Beyond Burgers will be sold on Walmart Inc.’s WMT,
+ 1.81%
warehouse chain Sam’s Club, and at BJ’s Wholesale Club Holdings Inc. BJ,
+ 4.25%
. Last summer, Beyond Meat started selling at Costco Wholesale Corp. COST,
+ 3.17%

Held privately, Impossible Foods, last week announced a distribution agreement with Walmart to add to its selection of partners including Safeway Inc., Albertsons Companies Inc. ACI,
+ 2.36%
, and Wegmans Food Markets Inc. (Impossible also launched a direct-to-consumer e-commerce site, and its products are available through Kroger Co.’s KR,
+ 0.82%

With the addition of nearly 2,100 Walmart locations, Impossible Burger is available in more than 8,000 physical supermarkets in 50 states – a more than 50-fold increase in its retail presence since March. To cope with a spike in demand, the company has scaled up operations with OSI Group, a food co-worker.

Shares of Beyond Meat have risen 88% this year. The wider S&P 500 index SPX,
+ 0.36%
will improve by 2% in 2020.