Beyond Meat revenue plummets in the second quarter due to flagging US demand

Aug 7, 2023, 5:44 PM

NEW YORK, NY - JUNE 13: In this photo illustration, packages of Beyond Meat "The Beyond Burger" sit...

NEW YORK, NY - JUNE 13: In this photo illustration, packages of Beyond Meat "The Beyond Burger" sit on a table, June 13, 2019 in the Brooklyn borough of New York City. Since going public in early May, Beyond Meat's stock has soared more than 450 percent and its market value is over $8 billion. Beyond Meat is a Los Angeles-based producer of plant-based meat substitutes, including vegan versions of burgers and sausages. (Photo by Drew Angerer/Getty Images)

(Photo by Drew Angerer/Getty Images)

Plant-based meat substitute maker Beyond Meat said its revenue plunged 30.5% in the second quarter as consumer demand for its burgers, sausages and other products fell despite price cuts.

The El Segundo, California-based company lowered its full-year revenue forecast as a result. Beyond Meat now expects revenue between $360 million and $380 million for the year. That’s down from the $375 million to $415 million it forecast at the end of the first quarter.

Beyond Meat’s shares fell 10% in after-hours trading Monday.

In a conference call with investors, Beyond Meat President and CEO Ethan Brown said the company faced tough comparisons to the second quarter of 2022, when a new beef jerky product generated sales and restaurants were reopening and placing big orders.

Beyond Meat suspends executive after he was arrested on suspicion of biting a man’s nose

But Brown said the company is also struggling to appeal to new customers because of perceptions that its products are unhealthy and overly processed. Brown said an ad campaign launched last week will better explain its “clean and simple” manufacturing process and highlight the products’ health credentials.

“We’re going to be much more aggressive in our marketing,” Brown said. “It is an education issue. The facts are there. The health benefits of our products are very strong.”

Brown said Beyond Meat has also reached out to some of its competitors to discuss working together on ads that would help change perceptions about the category.

For the April-June period, Beyond Meat reported revenue of $102.1 million. That was lower than the $108.7 million Wall Street forecast, according to analysts polled by FactSet.

U.S. revenue dropped 40% as both retail and food service sales weakened. International revenue was down 8.7%. International food service demand was flat compared to the same period last year, but retail sales were down nearly 16%.

Chick-fil-A’s newest sandwich has no chicken in it

Beyond Meat makes plant-based burgers and nuggets in a partnership with McDonald’s in Europe, but those products aren’t offered in the U.S. Brown said he expects more U.S. fast food restaurants to add plant-based options in the near future.

Beyond Meat said its net loss narrowed to $53.5 million, or 83 cents per share, as it reined in logistics and manufacturing costs. That was slightly better than the 84-cent loss analysts had forecast.

Brown expressed confidence that revenue will grow modestly in the second half of this year as new products hit the U.S. market and distribution grows abroad.

“We are very excited to be coming out of what we view as a trough in the category and resuming growth in the third and fourth quarter,” Brown said.

KSL 5 TV Live


FILE - A McDonald's golden arches is shown at restaurant in Havertown, Pa., Tuesday, April 26, 2022...

Dee-Ann Durbin

McDonald’s set for unprecedented growth over the next four years with 10,000 new stores

McDonald’s expects to open nearly 10,000 restaurants over the next four years, a pace of growth that would be unprecedented even for the world's largest burger chain.

2 days ago

When Daniel Reeder moved into his Bountiful home, he quickly realized its synthetic, membrane roofi...

Matt Gephardt and Sloan Schrage

Get Gephardt helps Bountiful homeowner who says he can’t get roofing company to make warranty repair

When Daniel Reeder moved into his Bountiful home, he quickly realized its synthetic, membrane roofing had a problem. Some of its adhesive began peeling.

2 days ago

Utah Gov. Spencer Cox speaking about his budget proposal for 2025 with the focus on getting starter...

Mike Anderson

Gov. Cox reveals 2025 budget plan with focus on starter homes

Governor Spencer Cox released his budget plans for 2025 Tuesday that he will now pass on to the legislature for review. Among his top priorities is a focus on bringing more starter homes to Utah.

2 days ago

Recall of kids cups sold on Amazon. (

Larry D. Curtis

Kids cups sold at Amazon recalled for led content

Two children's drink cups sold on Amazon have been recalled because of possible lead content.

3 days ago

a finger pushing a button on a fire alarm...

Brianna Chavez

Red Cross of Utah sees increase in smoke alarm installation requests, in need of volunteers

The Salt Lake Area Chapter of the American Red Cross said it has seen in increase in requests for free smoke alarm installations. The need is so great, more volunteers are needed.

3 days ago

File - The OpenAI logo appears on a mobile phone in front of a screen showing part of the company w...


Europe’s world-leading artificial intelligence rules are facing a do-or-die moment

Hailed as a world first, European Union artificial intelligence rules are facing a make-or-break moment as negotiators try to hammer out the final details this week — talks complicated by the sudden rise of generative AI that produces human-like work.

4 days ago

Sponsored Articles

Stylish room interior with beautiful Christmas tree and decorative fireplace...

Lighting Design

Create a Festive Home with Our Easy-to-Follow Holiday Prep Guide

Get ready for festive celebrations! Discover expert tips to prepare your home for the holidays, creating a warm and welcoming atmosphere for unforgettable moments.

Battery low message on mobile device screen. Internet and technology concept...

PC Laptops

9 Tips to Get More Power Out of Your Laptop Battery

Get more power out of your laptop battery and help it last longer by implementing some of these tips from our guide.

Users display warnings about the use of artificial intelligence (AI), access to malicious software ...

Les Olson

How to Stay Safe from Cybersecurity Threats

Read our tips for reading for how to respond to rising cybersecurity threats in 2023 and beyond to keep yourself and your company safe.

Design mockup half in white and half in color of luxury house interior with open plan living room a...

Lighting Design

Lighting Design 101: Learn the Basics

These lighting design basics will help you when designing your home, so you can meet both practical and aesthetic needs.

an antler with large horns int he wilderness...

Three Bear Lodge

Yellowstone in the Fall: A Wildlife Spectacle Worth Witnessing

While most people travel to this park in the summer, late fall in Yellowstone provides a wealth of highlights to make a memorable experience.

a diverse group of students raising their hands in a classroom...

Little Orchard Preschool

6 Benefits of Preschool for Kids

Some of the benefits of preschool for kids include developing independence, curiosity, and learning more about the world.

Beyond Meat revenue plummets in the second quarter due to flagging US demand