Beyond Meat missed market expectations for quarterly revenue and posted a wider-than-expected loss, hurt by relentless weakness in demand for plant-based meat.
The company, which also supplies its plant-based patties to fast food chains such as McDonald's and Yum! Brands, has been offering steeper discounts, as consumer sentiment about plant-based meat and its health benefits took a beating.
In August, Beyond Meat cited data from trade association Food Marketing Institute which showed the percentage of consumers in the US who believe plant-based meats are healthy dropped from 50% to 38% from 2020 to 2022.
Net revenue for the third quarter fell 8.7% to $75.3 million (€70.3 million), compared with analysts' average estimate of revenue of $85.4 million (€79.8 million), as per LSEG data.
The company's shares have fallen almost 45% so far this year.
Plant-Based Protein Alternatives
"Consumers in the US haven't fully warmed up to plant-based protein alternatives like Beyond Meat... because the products currently available on the market don't live up to shoppers' standards for taste and flavour," said Rachel Wolff, a senior analyst at Insider Intelligence.
Earlier this month, the company trimmed its annual revenue forecast and lowered its gross margin expectations. The company also announced fresh job cuts as part of a cost-reduction plan.
For the period ended 30 September, Beyond Meat posted a loss of $1.09 per share, compared with market expectations of a loss of 89 cents per share.