Company posts mixed Q1 results, and stock drops 9%; ‘further weakened demand’ seen for plant-based meats.
Shares of Beyond Meat Inc. fell more than 9% in the extended session Wednesday after the fake-meat maker reported a mixed quarter, called for weaker future sales and said consumers have further cooled on its offerings.
“The company’s operating environment continues to be affected by uncertainty relating to macroeconomic issues,” including an “ongoing, further weakened demand” for plant-based meats, inflation and high interest rates, Beyond Meat said.
The company also saw a drop in volume of products sold and a drop in net revenue per pound. That drop in net revenue per pound was mostly due to higher trade discounts and, to a lesser extent, pricing changes, it said.
Beyond Meat reduced operating expenses and cash burn year over year, bringing production in-house to reduce costs and improve quality, Chief Executive Ethan Brown said in a statement.
“Together with measures we are exploring to bolster our balance sheet, we continue to work to position 2024 as a pivotal year as we strive to achieve sustainable and profitable operations,” he said.
Beyond Meat BYND, -0.85% lost $54.4 million, or 84 cents a share, compared with a net loss $59 million, or 92 cents a share, in the year-ago period. Analysts polled by FactSet were looking for a GAAP per-share loss of 67 cents.
