Beyond Meat shares down as it sees ‘no sign of recovery’
Plant based ‘meat’ company Beyond Meat has cut its annual revenue forecast and missed second-quarter net sales estimates. Quarterly net revenue fell nearly 31% to $102.1m, missing analysts' average estimates of $108.4m.
(Video Transcript)
Beyond Meat numbers
Beyond Meat is a company that makes meat products from plants. Recently, their shares dropped by 15% because they didn't make as much money as people expected. They also said that they don't expect to make a profit by the end of 2023.
This news disappointed the stock market, and the company's shares went down. One reason for the drop in sales is that people are choosing to buy cheaper meat from animals instead of Beyond Meat's more expensive plant-based meat. People might think that animal meat tastes better or they might be trying to save money.
For example, instead of buying a plant-based burger for £8, they might choose to get a regular burger for £5. Beyond Meat's sales went down by 31% compared to the same time last year, and they made £102.1 million, which is less than what people thought they would make.
They also lowered their prediction for how much money they will make in 2023. They used to think they would make between £375 million and £415 million, but now they think it will be between £360 million and £380 million.
Concerns about the future
The drop in Beyond Meat's shares shows that investors are worried about the company's future. They're not sure if the company can keep making money and become successful. The fact that people are choosing cheaper animal meat instead of plant-based meat is also concerning.
Investors and experts will be watching the company closely to see what happens next. They want to know if Beyond Meat can overcome these challenges and make investors feel confident again.
This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
Seize a share opportunity today
Go long or short on thousands of international stocks.
- Increase your market exposure with leverage
- Get spreads from just 0.1% on major global shares
- Trade CFDs straight into order books with direct market access
Live prices on most popular markets
- Forex
- Shares
- Indices