Beyond Meat lowered its full-year sales outlook and said it will cut about a fifth of its global workforce, including several top executives, in the latest sign that demand for plant-based eating has cooled.
The company, which has been hit by production issues and rapid inflation tightening customers’ wallets, said it now sees net revenue of $400 million to $425 million. That’s down from previously lowered guidance of $470 million to $520 million.
Beyond Meat also said it’s cutting about 200 jobs, or roughly 19 per cent of its workforce. It announced the departure of its chief operating officer, chief financial officer and chief growth officer.
The shares fell 4.5 per cent in New York. The stock is trading around $14, a far cry from three years ago when it briefly climbed above $230 shortly after its initial public offering. The shares have been on a steady decline since June 2021.
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The company faces mounting challenges as rising prices drive consumers towards less expensive animal proteins and competition intensifies. Major fast-food partnerships have failed to gain traction, and the company has struggled to ramp up production.
Beyond Meat now expects positive cash flow in the second half of 2023.
Chief operating officer Doug Ramsey, who was suspended in September after he was arrested on allegations that he bit a man’s nose, is leaving the company, Beyond Meat said on Friday.
Chief financial officer Philip Hardin is stepping down to pursue another opportunity, the company said. Lubi Kutua, the vice-president for financial planning and analysis and investor relations, will take over that post.
Deanna Jurgens, the president of North America and global chief growth officer, is also leaving, and that role is being eliminated.
The plant-based category has broadly cooled off. Sales of refrigerated meat alternatives declined almost 11 per cent in the 12 months ended October 2nd, according to IRI data.
Earlier this month, JBS, the world’s largest meat supplier, said it would discontinue operations at its US plant-based unit Planterra. Peer Impossible Foods dismissed about 6 per cent of its 800-person workforce, though it has said that its sales are growing. — Bloomberg
