((Automated translation by Reuters, please see disclaimer https://bit.ly/rtrsauto))
(Corrects headline to reflect company reported “larger than expected” loss, not “larger”, and adds dropped article in paragraph 1)
Beyond Meat BYND.O reported a wider-than-expected quarterly loss and an 18% drop in revenue as its higher-priced plant-based meat products ran into production problems. volume.
WHY IT IS IMPORTANT
Demand for Beyond Meat’s products – including hamburger patties, sausages and ground beef – has weakened as their clients such as McDonald’s MCD.N and Yum Brands YUM.N have seen consumer demand stagnate in due to persistent inflation.
CONTEXT
Although Beyond Meat raised prices in the current quarter, the company’s volumes fell 16.1% as consumers limited their spending. Despite the price increases, the company’s margins have been pressured by rising manufacturing costs and material costs. Gross margin increased 4.9% in the quarter, compared to a 6.7% increase last year.
KEY QUOTE
“Consumers are still tightening their belts and are less likely to try new, premium food brands,” said Blake Droesch, an analyst at eMarketer.
BY THE NUMBERS
For the quarter, the company reported revenue of $75.6 million, compared to analysts’ average estimate of $75.2 million, according to LSEG data. In the U.S. restaurant segment, the company’s revenue fell 16.2% to $12.3 million, compared with a 5.3% decline to $14.7 million a year ago. year. On an adjusted basis, Beyond Meat reported a loss of 72 cents per share for the current quarter, compared to a loss of 67 cents per share estimated by analysts.
MARKET REACTION
Shares of the company, which maintained its annual revenue and gross margin guidance, were down about 10% in after-the-bell trading.
