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.
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