Beyond Meat’s revenue fell nearly 9% in the third quarter as higher sales of its plant-based meat in Europe failed to make up for plummeting demand in the U.S.
Beyond Meat on Wednesday reported revenue of $75.3 million for the July-September period. That was far short of the $86.5 million Wall Street had anticipated, according to analysts polled by FactSet.
Beyond Meat cut its third-quarter and full-year revenue forecast last week, saying an anticipated rebound in plant-based meat sales during the quarter didn't occur. The company said it would cut 65 non-production jobs — about 19% of its workforce — and conduct a broader review of its operations.
U.S. demand for plant-based meat has plunged this year, partly due to consumer perceptions that the products are overly processed, unhealthy and too expensive. U.S. retail dollar sales of fresh meat alternatives, like sausage and burgers, were down 21.5% this year through Oct. 8, according to Circana, a market research firm. Frozen plant-based meat sales, including items like tenders and nuggets, were down 6%.
Beyond Meat said its U.S. retail sales fell 34% in the third quarter. Sales volumes were down even though the company lowered its prices. U.S. food service sales also fell 22% as restaurants that had limited-time promotions of Beyond Meat products last fall didn't repeat those offers this year.
By comparison, retail sales rose 39% in international markets. International food service sales jumped 79%, largely due to European demand for its plant-based burgers and nuggets at McDonald's. McDonald's doesn't sell those products in the U.S.
The El Segundo, California-based company narrowed its net loss for the quarter to $70.5 million compared to $101.7 million in the same period a year ago. The loss, of $1.09 per share, also fell short of analysts’ expectation of an 89-cent loss.
Beyond Meat's shares fell 5% to close at $6.62 on Wednesday, down 46% from the start of the year. Its shares were flat in after-hours trading Wednesday.