(Reuters) -Beyond Meat said on Friday it expects about $70 million in third-quarter revenue, above analysts’ estimates, as the faux meat maker’s heavily shorted stock rose about 10% in premarket trading, extending its recent sharp rally.
Shares of the company have risen roughly 500% in the last week, fueling a fresh wave of buying among retail traders who have sparked meme stock frenzies on Wall Street in recent years.
The company has struggled with weak sales as demand dropped for its plant-based meat patties over the past four years, with recent shifts towards healthier foods driven by the “Make America Healthy Again” movement and the rise of weight-loss drugs, as well as rising inflation, expediting its decline.
The company’s revenue outlook is roughly in line with its prior forecast of between $68 million and $73 million, while analysts were expecting $68.9 million, according to data compiled by LSEG.
Beyond also expects quarterly operating expenses to be in the range of $41 million to $43 million for the three months ended September 27, while also flagging a significant impairment charge.
Shares of Beyond Meat had tanked earlier last week before surging due to a short squeeze, after it announced an early settlement of an exchange offer with its bondholders through the issue of fresh shares and notes to manage its debt.
The company is expected to report its results on November 4.
(Reporting by Neil J Kanatt in Bengaluru; Editing by Vijay Kishore)
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