Economy

Beyond Meat trims upper end of annual revenue forecast on weak faux meat demand

By Anuja Bharat Mistry

(Reuters) -Beyond Meat cut the top end of its annual revenue forecast on Wednesday, as cost-conscious consumers reined in spending on its expensive faux meat products and switched to cheaper alternatives.

Shares of the company were down about 5% in extended trading.

Beyond Meat (NASDAQ:BYND)’s aggressive prices increases over the past few quarters to counter higher ingredient costs, which have now eased from their peaks, have hurt demand for its plant-based meatballs and steak.

Quarterly sales volumes took a hit with the company reporting a 7.1% fall, compared with a 3.5% rise a year ago.

Beyond Meat’s customers in restaurant and fast-food industries such as McDonald’s (NYSE:MCD) are also grappling with weaker demand, further denting the vegan burger meat producer’s performance over the last two years.

“It will be very difficult for these (plant-based meat makers) companies to win a second chance from consumers who already tried these products and did not have a good experience,” said Blake Droesch, analyst with eMarketer.

Beyond Meat expects annual revenue to be between $320 million and $330 million, compared with its prior forecast of $320 million to $340 million.

Easing materials and logistics costs as well as increased net revenue per pound helped in expanding its quarterly margins to 17.7% compared to a 9.6% drop a year ago.

But the company said it was also further restructuring its balance sheet in 2025 and looks to increase cash reserves by year-end.

It’s quarterly revenue rose 7.6% to $81 million beating estimates of a 7.2% rise to $80.7 million, according to data compiled by LSEG.

Excluding items, it reported a loss of 41 cents per share for the quarter ended Sept. 28, compared with estimates of a loss of 44 cents.

This post appeared first on investing.com

You May Also Like

Editor's Pick

Sen. JD Vance (R-Ohio) and Minnesota Gov. Tim Walz (D) will face off Tuesday night at a CBS News vice-presidential debate in New York....

Latest News

A North Korean defector who escaped to the South more than a decade ago was detained after attempting to cross back into North Korea...

Economy

A U.N. human rights group confirmed Hamas’ leader in Lebanon, who was recently killed by Israeli strikes, was their employee.  Fateh Sherif was killed...

Investing

Astron (ASX:ATR) and Energy Fuels (TSX:EFR,NYSEAMERICAN:UUUU) have completed the establishment of a joint venture to advance the Australia-based Donald rare earths and mineral sands...

Disclaimer: balanceandcharge.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2024 balanceandcharge.com

Exit mobile version