(Bloomberg) -- Plant-based burger maker Beyond Meat Inc. plunged in late trading after the company slashed its revenue outlook for the fully year -- a sign that interest in its products is slipping amid heightened competition and high inflation.
- Beyond Meat now sees sales in a range of $470 million to $520 million for the full year. That’s down from the previous range of $560 million to $620 million. Second-quarter sales also missed Wall Street’s estimates.
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- US foodservice net revenues fell 2.4%, primarily due to a discontinuation with “a certain customer” that the company does not name. That drop was partially offset by an increase in sales of other products. Beyond Meat’s fast-food partnerships have yet to pay off in any meaningful sales. Although it has three-year deals with both McDonald’s Corp. and Yum! Brands Inc., Beyond Meat has yet to land a permanent menu item at any of the chains’ US restaurants. Internationally, foodservice sales were up 7%.
- Beyond Meat has been struggling to bring its products to the market and has faced criticism for its spending. It has $455 million in cash and cash equivalents on hand, compared to the $548 million it had at the end of the first quarter. It spent $42 million on capital expenditures for the six months ending July 2, 2022, primarily on production equipment and its facilities. It also has $1.1 billion in outstanding debt.
- The company said it is reducing its workforce by about 4%, confirming a report Wednesday by Bloomberg News. The move is expected to generate annual savings of about $8 million.
- Beyond Meat shares fell 2.8% at 4:19 p.m. in late New York trading. The stock price has fallen more than 50% in 2022, following a similar decline in 2021.
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