Beyond Meat Stock Slips as Sales and Outlook Miss the Mark Again

Beyond Meat expects revenue between $470 million and $520 million for the full year.


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Beyond Meat

stock fell Friday, as the market digests the plant-based protein maker’s downbeat second-quarter results and full-year outlook.

Late Thursday, Beyond Meat (ticker: BYND) said it lost $1.53 a share on revenue that slipped 1.6% year over year to $147 million. Analysts were looking for a per-share loss of $1.32 on revenue of $148.3 million.

For the full year, the company now expects revenue between $470 million and $520 million, down from its previous guidance of $560 million to $620 million. Consensus had called for revenue of $556.1 million.

In addition, Beyond Meat said it was reducing its workforce by about 4%, a move it hopes will lead to total annualized savings of $8 million, although it will incur a one-time $1 million charge related to the move in the current quarter.

Beyond Meat fell 3.8% in recent trading on the news to $30.20. The shares have lost about half their value this year.

Although plant-based protein is growing in popularity for ethical, environmental, and health reasons, it’s an increasingly crowded market, and one that requires capital-intensive product research and innovation. In addition, major government subsidies to the meat and dairy industries mean that it’s hard for plant-based players to match traditional products’ prices, despite price cuts.

Beyond Meat has had plenty of partnerships with major restaurant chains, although in many cases those are limited in duration and that business still makes up only about 30% of its sales. That means Beyond still relies heavily on retail revenue.

Beyond Meat has missed sales expectations seven of the past eight quarters, and has turned in a wider-than-expected loss each of those periods.Wall Street isn’t very upbeat about the stock at the moment. Only one of the 19 analysts tracked by FactSet is bullish on Beyond Meat, while about a quarter rate it at Sell or the equivalent.

Beyond Meat is hardly alone however. While plant-based products continue to proliferate amid rising demand, the companies behind them have struggled to make headway. Shares of oat-based milk maker Oatly (OTLY) are off 55% this year, while



Laird Superfood

stock (LSF) is down 84%.

Write to Teresa Rivas at teresa.rivas@barrons.com

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