By Neil J Kanatt (Reuters) -Beyond Meat missed Wall Street estimates for second-quarter revenue on Wednesday, hurt by weak demand for its plant-based meat products in the U.S. amid ongoing macroeconomic uncertainty. Shares of the company, which also announced a 6% reduction in its global workforce, fell about 4% after the bell. U.S. consumer demand […]
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Beyond Meat misses quarterly revenue estimates as plant-based demand weakens
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By Neil J Kanatt
(Reuters) -Beyond Meat missed Wall Street estimates for second-quarter revenue on Wednesday, hurt by weak demand for its plant-based meat products in the U.S. amid ongoing macroeconomic uncertainty.
Shares of the company, which also announced a 6% reduction in its global workforce, fell about 4% after the bell.
U.S. 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 U.S., 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 U.S. 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.
Revenue for the quarter ended June 28 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.
(Reporting by Neil J Kanatt in Bengaluru; Editing by Tasim Zahid)