Beyond Meat posted a surprise quarterly loss and lower than expected sales Monday(November 9), after an initial surge in demand at the start of the global health crisis.
But as consumer stockpiling eases, and restaurant sales falter, demand for the company's plant-based meat has suffered.
Shares slumped by over a quarter as sales grew at their slowest pace since the company went public last year.
The news comes shortly after McDonald's announced the launch of its own line of plant-based meat called "McPlant," which is set to hit the fast food chain's restaurants next year.
Several reports suggested the move could signal an end to Beyond Meat's relationship with McDonald's.
But Beyond said they had co-created the McPlant patty, and CEO Ethan Brown dismissed the reports, calling them "greatly exaggerated."
McDonald's has not yet announced which supplier it will call on to craft its McPlant products.
But Beyond Meat is a current frontrunner, after previously testing a so-called P.L.T. burger at McDonald's locations in Canada earlier this year.
Beyond also announced it will begin selling its burgers at 7,000 CVS pharmacy locations in the U.S. as more people are expected to buy groceries there.