Beyond Meat misses quarterly revenue estimates as plant-based demand weakens

BEYOND Meat missed Wall Street estimates for second-quarter revenue on Wednesday, hurt by weak demand for its plant-based meat products in the US amid ongoing macroeconomic uncertainty.

Shares of the company, which also announced a 6 per cent reduction in its global workforce, fell about 4 per cent after the bell.

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 per cent so far this year, and frozen plant-based meat alternatives have fallen 8.1 per cent, 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 US$0.8 million to US$1.3 million.

Revenue for the quarter ended June 28 fell nearly 20 per cent to US$75 million, compared with analysts’ average estimate of US$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. REUTERS