Beyond Meat revenue plummets in the second quarter due to flagging US demand

abcnews.go.com:

Beyond Meat said its revenue plunged 30.5% in the second quarter as consumer demand for its plant-based meat substitute fell despite price cuts

Plant-based meat substitute maker Beyond Meat said its revenue plunged 30.5% in the second quarter as consumer demand for its burgers, sausages and other products fell despite price cuts.

The El Segundo, California-based company lowered its full-year revenue forecast as a result. Beyond Meat now expects revenue between $360 million and $380 million for the year. That’s down from the $375 million to $415 million it forecast at the end of the first quarter.

Beyond Meat's shares fell 10% in after-hours trading Monday.

In a conference call with investors, Beyond Meat President and CEO Ethan Brown said the company faced tough comparisons to the second quarter of 2022, when a new beef jerky product generated sales and restaurants were reopening and placing big orders.

But Brown said the company is also struggling to appeal to new customers because of perceptions that its products are unhealthy and overly processed. Brown said an ad campaign launched last week will better explain its “clean and simple" manufacturing process and highlight the products' health credentials.

“We’re going to be much more aggressive in our marketing,” Brown said. “It is an education issue. The facts are there. The health benefits of our products are very strong.”

Brown said Beyond Meat has also reached out to some of its competitors to discuss working together on ads that would help change perceptions about the category.

For the April-June period, Beyond Meat reported revenue of $102.1 million. That was lower than the $108.7 million Wall Street forecast, according to analysts polled by FactSet.

U.S. revenue