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 cut its 2022 revenue forecast and announced it will cut its workforce by 4%, citing broader economic uncertainty.
The El Segundo, Calif.-based company also reported a wider-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, according to a survey of analysts by Refinitiv:
- 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 in clearance channels.
“We recognize that progress is taking longer than we expected,” CEO Ethan Brown said in a statement, referring to the company’s push toward mass consumption of plant-based meat-mimicking products.
For 2022, Beyond now expects revenue of $470 million to $520 million, down from its previous forecast of $560 million to $620 million. The company said inflation, rising interest rates and growing concerns about a recession were among the factors that prompted the revised outlook.
Beyond also said it will lay off about 4 percent of its global workforce, which is expected to save about $8 million a year. However, the company will also spend approximately $1 million in separation costs that will impact its third-quarter results.
Beyond Meat reported a second-quarter net loss of $97.1 million, or $1.53 per share, wider than a 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. Also, its meat-free Beyond Jerky, made through a joint venture with PepsiCo, weighed on profit margins for the second quarter in a row.
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 has struggled to recover.
Outside the US, grocery sales fell 17%, while restaurant sales rose 7%. The two international divisions generally contribute roughly equal revenue to Beyond.
Read the full earnings report here.