Beyond Meat's stock slumps after profit warning as Q3 sales lag expectations
Beyond Meat Inc. (BYND) issued a profit warning for the third quarter and full year early Thursday and said it would cut 19% of its global non-production workforce after an expected return to growth failed to materialize. The plant-based food company said it now expects a third-quarter gross loss of about $7 million to $8 million and for revenue of about $75 million, below the $88 million FactSet consensus. It expects free cash flow to be positive at about $7.6 million. "We anticipated a modest return to growth in the third quarter of 2023 that did not occur, reflecting further sector-specific and consumer headwinds," Chief Executive Ethan Brown said in a statement. "Even as we implement measures to address those headwinds that are within our sphere of influence, we intend to pursue a further, sizable reduction of operating expenses to improve our cost structure." On top of job cuts, the comany will review its pricing strategy to boost margins; use inventory management to reduce working capital; renew focus on geographies that are showing revenue growth; and in U.S. retail, use its portfolio and marketing to correct misinformation about its products. Third-quarter revenue was hit by weaker-than-expected sales volume in U.S. retail and foodservice channels, lower-than-expected returns from promotions and unfavorable changes in product sales mix. The stock reversed early gains to trade lower and is down 52% in the year to date, while the S&P 500 has gained 10%.
-Ciara Linnane
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11-02-23 0849ET
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