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Beyond Meat Revenue Drops 9% in Q3 Due to Decreased US Demand Despite Rising Sales in Europe

Consumer perceptions of plant-based meats as overly processed and expensive, along with an anticipated sales rebound failing to materialize, contribute to sharp decline in U.S. sales, overshadowing overseas gains and forcing Beyond Meat to cut jobs and revise revenue forecasts.

Overview

  • Beyond Meat's Q3 revenues fell by nearly 9%, reporting $75.3 million, which was significantly below the expected $86.5 million due to a drop in demand in the U.S. market.
  • The decline in U.S. demand is attributed to consumer perceptions of plant-based meats as unhealthy, overly processed, and expensive. Fresh meat alternatives sales fell 21.5%, and frozen meat alternatives sales fell by 6%.
  • Despite lowering its prices, Beyond Meat experienced a 34% drop in U.S. retail sales and a 22% decrease in U.S. food services sales in Q3. The company also announced the elimination of 65 non-production jobs, constituting 19% of its workforce.
  • While the U.S. demand fell, the international markets saw a significant rise. Retail sales increased by 39% and food service sales jumped by 79%, largely driven by the European demand for Beyond Meat’s products.
  • Beyond Meat's shares experienced a 5% drop, closing at $6.62 on Wednesday - a 46% decrease since the beginning of the year. The company's net loss for the quarter was $70.5 million, higher than analysts' expected loss of 89 cents per share.