Shares of Beyond Meat, the popular plant-based meat company, have fallen by a fifth after the company announced a cut in its annual revenue guidance. The decrease in demand for its meat alternatives in the U.S. is the primary reason for this downward trend.
At the start of early trading, the stock was down 20% at $12.24, bringing it close to its starting point for the year.
Beyond Meat has revised its previous guidance of a 1% to 10% decline in annual sales to now expect a 9% to 14% decline. Additionally, the company anticipates missing its target for "cash flow positive operations" within the second half of this year.
The decline in sales became evident in Beyond Meat's second-quarter results, where sales fell by 31% to $102.1 million. This figure missed analyst forecasts of $108.7 million.
The U.S. retail channel witnessed a significant decline in revenue, with a staggering 38.5% drop due to weak demand.
During a call with analysts, Chief Executive Ethan Brown pointed out that interest groups played a part in tarnishing consumers' perception of the health benefits associated with plant-based meat alternatives.
According to Brown, these groups have been successful in sowing doubts and fears surrounding the ingredients and processes involved in creating plant-based meats.
Keep up with Beyond Meat's progress as the company tackles the challenges posed by shifting consumer views on plant-based options.
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