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

by Gabriel Martinez
7 comments
Beyond Meat

Beyond Meat, the manufacturer of plant-based meat alternatives, reported a 30.5% drop in revenue for the second quarter, reflecting reduced consumer demand for its burgers, sausages, and other products, even with price reductions. The California-based company also cut its full-year revenue projection, now expecting revenue to be in the range of $360 million to $380 million, down from its previous estimate of $375 million to $415 million.

Following the announcement, Beyond Meat’s shares suffered a 10% drop in after-hours trading on Monday.

During a call with investors, CEO Ethan Brown acknowledged that the company had faced challenging comparisons to the second quarter of 2022, particularly because of the success of a new beef jerky product and the reopening of restaurants leading to large orders. He also cited the struggle to attract new customers, who perceive the products as unhealthy and overly processed.

To counter these perceptions, Brown announced that an advertising campaign launched the previous week aims to emphasize the “clean and simple” manufacturing process of Beyond Meat’s products and their health benefits. He also mentioned the company’s intention to be more aggressive in marketing and has even reached out to competitors to collaborate on advertisements to improve the image of the category.

Beyond Meat’s revenue for the April-June period was $102.1 million, falling short of Wall Street’s forecast of $108.7 million. U.S. revenue experienced a 40% drop as retail and food service sales declined, while international revenue went down by 8.7%.

While Beyond Meat produces plant-based burgers and nuggets in collaboration with McDonald’s in Europe, these products are not available in the U.S. However, Brown anticipates more U.S. fast-food chains will offer plant-based options soon.

Despite the negative figures, the company managed to narrow its net loss to $53.5 million or 83 cents per share, slightly outperforming analysts’ prediction of an 84-cent loss. Brown expressed optimism about the future, expecting modest revenue growth in the second half of the year with new product launches in the U.S. and expanded distribution overseas.

“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,” he concluded.

Frequently Asked Questions (FAQs) about Beyond Meat

What caused Beyond Meat’s revenue to plummet in the second quarter?

The revenue of Beyond Meat dropped 30.5% in the second quarter due to reduced consumer demand for its products like burgers and sausages. The perception that the products are unhealthy and overly processed also contributed to the decline.

How has Beyond Meat adjusted its full-year revenue forecast?

Beyond Meat lowered its full-year revenue forecast, expecting revenue between $360 million and $380 million, down from the previous estimate of $375 million to $415 million.

What is Beyond Meat’s plan to address the perception that its products are unhealthy?

Beyond Meat has launched an advertising campaign to emphasize its “clean and simple” manufacturing process and highlight the health benefits of its products. The company also plans to be more aggressive in marketing and is considering collaboration with competitors to change perceptions about the category.

Did Beyond Meat’s share price change after the announcement?

Yes, Beyond Meat’s shares fell 10% in after-hours trading following the announcement.

What are some of Beyond Meat’s upcoming plans?

Beyond Meat’s CEO expressed optimism about modest revenue growth in the second half of the year with new product launches in the U.S. and expanded distribution overseas. The company also anticipates more U.S. fast-food restaurants will offer plant-based options soon.

How did Beyond Meat’s net loss compare to analysts’ predictions?

Beyond Meat’s net loss narrowed to $53.5 million or 83 cents per share, slightly better than the 84-cent loss that analysts had forecast.

What was Beyond Meat’s revenue for the April-June period?

For the April-June period, Beyond Meat reported revenue of $102.1 million, lower than the Wall Street forecast of $108.7 million.

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7 comments

KellyR August 8, 2023 - 5:58 am

not surprised about the US revenue drop, but only 8.7% international? Something’s not adding up here.

Reply
FionaM August 8, 2023 - 11:17 am

Just tried their burger last week. Wasn’t bad, but i expected more. Maybe new products will be bettr?

Reply
Mike42 August 8, 2023 - 1:01 pm

Beyond Meat teaming up with competitors? That’s interestin. Never thought I’d see the day.

Reply
Sarah_J August 8, 2023 - 5:38 pm

I love their products. But yeah, i can see why some people think they’re not healthy. Good to see they are doing something about it!

Reply
DerekH August 8, 2023 - 7:57 pm

shares fell 10%? Ouch! Hope they recover soon with those new strategies in place.

Reply
Tom_Griffin August 8, 2023 - 10:12 pm

Aggressive marketing is the way to go! show the people that plant-based is the future. Also, the collaboration with McDonald’s in Europe sounds cool.

Reply
JamesT August 9, 2023 - 1:11 am

Wow, thats a huge drop in revenue. What’s going on with Beyond Meat?? need to fix their marketing maybe.

Reply

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