Siddarth S. and Praveen.

(Reuters] – After Beyond Meat’s signal of slowing sales at restaurants, grocers and with a low forecast for future orders, shares fell 19% on Thursday. It raises questions as to whether the company is in danger of becoming saturated.

Numerous fast-food outlets saw a decline in sales of their plant-based meat during the third quarter. The country was under the control of the Delta COVID-19 virus and many restaurants were cutting back on hours to meet labor shortages.

Seven brokerages reduced the price target for the stock. Analysts believe that the company will continue to face a slowdown. Beyond Meat, which forecasts current-quarter revenues of between $85 million and $110million on Wednesday, is far below $131.6 Million estimates.

“We see the results as more evidence that Beyond’s market saturation is faster than anticipated and that Beyond’s company has deeper problems which won’t be simple to fix.” Credit Suisse Robert Moskow, analyst said.

“Consumer Interest in Beyond is only reaching a Peak.”

Beyond Meat was able to grow its sales and stock three years ago, thanks to the success of popular fast-food restaurants like Tim Hortons or Yum Brands Inc.’s KFC. Also, several retail outlets partnered with company in order for them sell their products.

However, the rapid pace of growth has come to a halt due to the pandemic as well the entry of more new players like Impossible Foods. Stock is down by 24% in the last year.

Ethan Brown, CEO, stated that “with increased competition over two years, it’s been expected to have an impact on our market shares.”

He stated that during the pandemic, customers were less likely to experiment with new products.

Rob Dickerson from Jefferies (NYSE) said that revenues dropped in Q3 and there is still uncertainty about revenue growth in Q4. He also stated that Q4’s revenue growth was uncertain in the short-term, as well as into 2022.

“This was probably the quarter that broke the camel’s back.”