Plant-Based Meat Company Beyond Meat (BYND ) reported a 30% drop in revenue in the second quarter due to lower demand for its products. Shares of the company were down about 21% in early trading Monday.
Key Points to Remember
- Beyond Meat's revenue fell 30% in the second quarter due to lower demand for its products.
- The company cited a tough economy for weaker demand for plant-based meat products.
- Beyond Meat also saw the departure of many senior executives over the course of the year. ;year passed.
Inflation has eaten away demand for vegetable meat
Beyond Meat's second-quarter revenue of $102.1 million was 30.5% lower than revenue in the same quarter last year. U.S. revenue fell nearly 40%, while international revenue fell 8.7%. The company also reported a 24% drop in the volume of its products sold.
The company blamed its performance on weak consumer demand and macroeconomic factors such as “high inflation, rising interest rates and continued concerns about the likelihood of a recession”.
And that's been history since last year. According to its 2022 annual report, inflation has driven customers to choose cheaper protein at grocery stores. The company is also facing growing competition and fighting negative claims that plant-based meat is unhealthy.
Beyond Meat cut forecast revenue for 2023 by nearly double digits to a range of $360-380 million.
A difficult path for Beyond Meat
As consumers cut back on meat spending plants, investor interest in Beyond Meat also plummeted. Shares of the company had skyrocketed after its IPO to nearly $240, but now trades around $12.
company could also make shareholders suspicious. Beyond Meat's chief operating officer left the company last September after he allegedly bit off a man's nose during a road rage incident outside the company. ;a football game. The company has since let go of its director of global growth and seen the departure of its director of supply chain.
Despite the sharp decline, Beyond Meat shares are down only about 2.5% year-to-date. img src=”/wp-content/uploads/2023/08/3e13cead12c8b4d62518fa480a0dd010.jpg” />
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Source: investopedia.com
