Beyond Meat missed Wall Street estimates for second-quarter revenue, hurt by weak demand for its plant-based meat products in the US amid ongoing macroeconomic uncertainty.
US consumer demand for plant-based meat continued to decline this quarter amid skepticism over taste, processing and price.
Macroeconomic uncertainty has pressured consumer spending in the US, prompting many to opt for cheaper animal protein.
“Consumers’ growing concerns about processed foods are severely diminishing the appeal of Beyond Meat’s product line, causing retailers and quick service restaurants to pull back sharply on orders,” Rachel Wolff, analyst at Emarketer, said.
Retail sales of refrigerated plant-based meat alternative products in the US have fallen 17.2% so far this year, and frozen plant-based meat alternatives have fallen 8.1%, according to data from SPINS.
The El Segundo-based company said it will lay off 44 North American employees to cut costs, incurring a one-time charge of $0.8–$1.3 million.
Quarterly Highlights
Revenue for the quarter ended 28 June fell nearly 20% to $75 million, compared with analysts’ average estimate of $82 million, according to data compiled by LSEG.
It also reported a loss per share of 43 cents, compared with estimates of a 37-cent loss.
The company withdrew its annual sales target, citing macroeconomic volatility, earlier in May. Beyond Meat misses quarterly revenue estimates as plant-based demand weakens.
Beyond Meat president and CEO, Ethan Brown, commented, “We are disappointed with our second quarter results, which primarily reflect ongoing softness in the plant-based meat category, particularly in the US retail channel and certain international foodservice markets.
“We are responding by accelerating our transformation activities, including more rapidly and aggressively reducing our operating expenses to fit anticipated near term revenues; prioritising increased distribution of our core product lines; and investing in margin expansion initiatives across these core products.”
News by Reuters, additional reporting by ESM.
