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


A still from "Super/Man: The Christopher Reeve Story" by Ian Bonhãte and Peter Ettedgui, an offici...


Sundance film ‘Super/Man: The Christopher Reeve Story’ gets U.S. theatrical release

Sundance film "Super/Man: The Christopher Reeve Story" will get a special-even theatrical release in the U.S.

3 days ago

FILE - This combination of 2017-2022 photos shows the logos of Facebook, YouTube, TikTok and Snapch...

Matt Gephardt and Sloan Schrage

Scammers offer to help regain control of hacked social media accounts for a fee

People are advertising they can help you get back into your hacked social media accounts. It is a lie.

5 days ago

Utah Capitol where lawmakers passed a deal to possible raise a tax and quickly spend the money on d...

Lindsay Aerts

Lawmakers defend Sept. 1 contract deadline on downtown plans

The deal to raise Salt Lake City's sales tax to help house the new NHL team and revitalize downtown is moving fast and lawmakers are defending the deadline.

5 days ago

Ben Van Leeuwen scoops Kraft Mac & Cheese flavored ice cream Wednesday, May 15, 2024, in the Br...

Dee-Ann Durbin, The Associated Press

Sour Patch Kids Oreos? Peeps Pepsi? What’s behind the weird flavors popping up on store shelves

Van Leeuwen Ice Cream usually draws customers with gourmet takes on classics like vanilla and pistachio. But occasionally, the artisanal ice cream maker headquartered in New York slips in what it calls a “shock flavor,” like Hidden Valley Ranch or pizza.

7 days ago

ROHNERT PARK, CALIFORNIA - APRIL 17: In an aerial view, a sign is posted on the exterior of a Red L...

Michelle Chapman and Dee-Ann Durbin, AP Business Writers

Red Lobster seeks bankruptcy protection days after closing dozens of restaurants

Casual dining chain Red Lobster has filed for bankruptcy protection late Sunday, days after shuttering dozens of restaurants.

7 days ago

Abravanel Hall is pictured in Salt Lake City on Wednesday, May 8, 2024. Smith Entertainment Group, ...

Lindsay Aerts

Plan for updating Abravanel Hall estimated to cost hundreds of millions

Estimates for updating Abravanel Hall, home of the Utah Symphony, are estimated to cost over $200 million.

7 days ago

Sponsored Articles

Electrician repairing ceiling fan with lamps indoors...

Lighting Design

Stay cool this summer with ceiling fans

When used correctly, ceiling fans help circulate cool and warm air. They can also help you save on utilities.

Side view at diverse group of children sitting in row at school classroom and using laptops...

PC Laptops

5 Internet Safety Tips for Kids

Read these tips about internet safety for kids so that your children can use this tool for learning and discovery in positive ways.

Women hold card for scanning key card to access Photocopier Security system concept...

Les Olson

Why Printer Security Should Be Top of Mind for Your Business

Connected printers have vulnerable endpoints that are an easy target for cyber thieves. Protect your business with these tips.

Modern chandelier hanging from a white slanted ceiling with windows in the backgruond...

Lighting Design

Light Up Your Home With These Top Lighting Trends for 2024

Check out the latest lighting design trends for 2024 and tips on how you can incorporate them into your home.

Technician woman fixing hardware of desktop computer. Close up....

PC Laptops

Tips for Hassle-Free Computer Repairs

Experiencing a glitch in your computer can be frustrating, but with these tips you can have your computer repaired without the stress.

Close up of finger on keyboard button with number 11 logo...

PC Laptops

7 Reasons Why You Should Upgrade Your Laptop to Windows 11

Explore the benefits of upgrading to Windows 11 for a smoother, more secure, and feature-packed computing experience.

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