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Beyond Meat Slashes Revenue View Again, Will Cut 8% of Jobs

Beyond Meat Slashes Revenue View Again, Will Cut 8% of Jobs
Beyond Meat products.

Beyond Meat Inc. cut its revenue forecast for the second time in three months amid sagging demand for its plant-based proteins.

The company said Thursday that it now expects full-year revenue of $330 million to $340 million, down from its prior range of $360 million to $380 million. The revised guidance represents a decline of as much as 21% from 2022.

Beyond Meat also plans to eliminate 65 jobs, or 8% of its global workforce, as it reduces operating expenses. The cuts will result in up to $10.5 million in savings, though the company will incur up to $2.5 million in one-time cash charges that it expects mostly in the fourth quarter.

The efforts to trim costs also include pricing changes, shifts in manufacturing capacity and real estate, the possible discontinuation of some products and a potential restructuring of operations in China.

The shares jumped as much as 11% in New York trading Thursday, the biggest intraday gain since July. The stock had slumped 52% for the year through Wednesday’s close.

In the third quarter, an anticipated “modest return to growth” didn’t occur, Chief Executive Officer Ethan Brown said in a statement. Revenue for the period is expected to be about $75 million, below the Bloomberg analyst estimate of $88.5 million.

Sales were hurt by continued weakness in the US amid sagging demand for plant-based meat, promotions that didn’t deliver as predicted and weaker-than-expected sales of core products, such as the Beyond Burger, relative to items like faux chicken nuggets and steak.

Beyond Meat shares plunged in August after it cut its outlook amid dwindling cash reserves. At the time, Brown acknowledged the bumpy path to “mainstream adoption” of plant-based products. Another goal of the expense reduction strategy is to “directly counter misinformation about our products and category,” Brown said.

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