Beyond Meat cuts revenue outlook, says it’s trimming workforce

Beyond Meat on Thursday lowered its revenue forecast for 2022 and announced it will trim its workforce by 4%, citing broader economic uncertainty.

The El Segundo, California-based company also reported a wider-than-expected loss and weak sales. Its shares fell 2% in extended trading.

Here’s what the company reported compared with what Wall Street was expecting, based on a survey of analysts by Refinitiv:

• Loss per share: $1.53 vs. $1.18 expected
• Revenue: $147 million vs. $149.2 million expected

Net sales dropped 1.6% to $147 million. The company attributed the decline to changes in foreign exchange rates, increased discounts and sales to liquidation channels.

“We recognize progress is taking longer than we expected,” CEO Ethan Brown said in a statement, referring to the company’s push into mass market consumption with plant-based products that mimic meat.

For 2022, Beyond now expects revenue of $470 million to $520 million, down from its prior forecast of $560 million to $620 million. The company said inflation, rising interest rates and growing concerns about a recession were among the factors that drove the revised outlook.

Beyond also said it will lay off about 4% of its global workforce, which is expected to save about $8 million on an annual basis. However, the company will also spend roughly $1 million in separation costs that will impact its third-quarter results.

Beyond Meat reported a second-quarter net loss of $97.1 million, or $1.53 per share, wider than the net loss of $19.7 million, or 31 cents per share, a year earlier. The company said it spent more on ingredients and manufacturing this quarter. Moreover, its meatless Beyond Jerky, made through a joint venture with PepsiCo, weighed on profit margins for the second consecutive quarter.

U.S. grocery sales rose 2.2% in the quarter, offsetting a 2.4% decline of its restaurant business. Prior to the pandemic, restaurants accounted for more than half of its sales, but the business has struggled to bounce back.

Outside the U.S., grocery sales fell 17%, while restaurant sales increased 7%. The two international divisions generally contribute roughly equal revenue for Beyond.

Read the full earnings report here.