Premarket trading on Thursday saw shares of Beyond Meat (NASDAQ) fall more than 25% after it reported an adjusted loss per share that was larger than expected.

BYND reported a Q1 adjusted share loss of $1.58 versus a loss of 42c and an estimated loss of 98c respectively. In net revenue, $109.5 million was achieved. This is 1.2% more YoY than the anticipated $112.2million.

The adjusted EBITDA loss was $78.9million, which compares to the $10.8 million loss last year and $49.7 million projected. U.S. net revenue was $83.8 million. That’s a 4% increase YoY, and more than consensus estimates of $81.8million.

BYND had $15.5million in U.S. Foodservice Net Revenue, which was 7.5% lower YoY than the consensus analyst estimate of $23.8 Million. In the same period, international net revenue was $25.7million. This is 6.9% less than analyst expectations and $32.9 million below.

Beyond Meat anticipates net revenues in the $560-$620 range for the entire fiscal year. Analysts were expecting $586.4 million.

Benjamin Theurer from Barclays downgraded shares at Equal Weight to $25.00 with a target price of $80.00.

“Given limited short term visibility, mounting cost pressure, and high cash burn, we downgrade BYND to EW and lower our price target to $25. The 1Q results disappointed, and the 2Q guidance wasn’t as positive than our earlier estimates. For 2H22 we see sales growth reaccelerating, but margins to remain well below historic levels,” the analyst said in a client note.

BofA analyst Peter Galbo lowered the price target by $20.00 from $45.00 for shares that are Underperform-rated.

“BYND expects incremental improvement in sales/margins over the remainder of FY22 with stronger improvement in 2H; however, we expect the stock to remain pressured until fundamentals improves,” Galbo told clients.

By Senad Karaahmetovic