The vegetarian food company ‘Beyond Meat’ continues to lower expectations.
The Motley Fool has reported the company now expects its revenue to be down in the third quarter.
It also forecast a negative gross profit of $7 million to $8 million in the quarter, and cut its full-year revenue forecast to between $330 million and $340 million, reflecting a year-over-year decline of 19% to 21%.
The company is reportedly struggling as it faces poor pricing economics and a weakening consumer demand, the latest news will result in a layoffs of 19% of its non-production workforce. This move follows over 200 positions that were cut last year.
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Rival Impossible Foods is struggling as well, announcing layoffs earlier this year. Plant-based meat products are readily available at supermarkets and restaurants, and consumers interested in trying them likely already have. A number of reports also show that consumers are not satisfied with the taste of plant-based meat, which could be an even bigger problem than high prices in the category.
The Associated Press reports that Beyond Meat is considering restructuring its Chinese operations and eliminating certain product lines as part of cost-cutting efforts.
Inflation under the Biden administration has hurt Beyond Meat. President and CEO Ethan Brown said in a statement that plant-based meat sales were hurt by high inflation, which sent some shoppers back to less expensive (and far-tastier) animal meats.
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