Vegetarian sausages from Beyond Meat Inc, the maker of vegan burgers, are displayed for sale at a market in Encinitas, California on June 5, 2019.
Mike Blake | Reuters
Beyond Meat on Thursday lowered its 2022 revenue forecast and said it would cut its workforce by 4%, citing wider economic uncertainty.
The El Segundo, Calif.-based company also reported a bigger-than-expected loss and weak sales. Its shares fell 2% in extended trading.
Here’s what the company reported compared to what Wall Street expected, based on a Refinitiv analyst survey:
- Loss per share: $1.53 vs. $1.18 expected
- Revenue: $147 million vs $149.2 million forecast
Net sales fell 1.6% to $147 million. The company attributed the decline to changes in exchange rates, increased discounts and sales to clearance channels.
“We recognize that progress is taking longer than expected,” CEO Ethan Brown said in a statement, referring to the company’s push toward mass consumption with plant-based products that mimic meat.
For 2022, Beyond now forecasts revenue of $470-520 million, down from its previous forecast of $560-620 million. The company said inflation, rising interest rates and growing worries about a recession were among the factors behind the revised outlook.
Beyond also said it would lay off about 4% of its global workforce, which should save about $8 million a year. However, the company will also spend approximately $1 million in separation costs, which will impact its third quarter results.
Beyond Meat reported a net loss of $97.1 million, or $1.53 per share, in the second quarter, higher than net loss of $19.7 million, or 31 cents per share, a year earlier . The company said it spent more on ingredients and manufacturing this quarter. Additionally, its meatless Beyond Jerky, made through a joint venture with PepsiCo, weighed on profit margins for the second consecutive quarter.
U.S. grocery sales rose 2.2% in the quarter, offsetting a 2.4% decline in its restaurant business. Before the pandemic, restaurants accounted for more than half of its sales, but the business is struggling to rebound.
Outside the United States, grocery store sales fell 17%, while restaurant sales rose 7%. The two international divisions generally contribute approximately equally to Beyond.
Read the full earnings report here.