(Reuters) – Beyond Meat (NASDAQ:) Inc’s expenses more than doubled in the third quarter as the vegan burger maker ramped up manufacturing to meet booming demand for plant-based proteins.
The company’s shares fell 8% in after-market trading as the surge in expenses overshadowed a beat on quarterly revenue and a raised forecast for full-year sales.
Operating expenses surged 124% to $29 million in the three months ended Sept. 28. It also represented a 42% jump from the second quarter.
The California-based company raised its full-year net revenue forecast for the second time to $265 million to $275 million. It had previously forecast net revenue to exceed $240 million.
Consumers looking to switch to healthier diets have fueled demand for faux meat alternatives, prompting restaurants like Carl’s Jr and Yum Brands’ KFC to rush to get Beyond Meat’s products on their menus.
Net revenue rose 250% in the third quarter to $91.96 million, above Wall Street’s estimate of $82.2 million, according to Refinitiv IBES data.
The company’s shares have gained over four-fold in value since their May initial public offering price. The IPO share lockup period expires on Tuesday.
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