(Bloomberg) -- Beyond Meat Inc. seeks to raise as much as $200 million in an equity offering as the plant-based burger maker contends with falling sales and a decline in cash reserves. 

The company filed a prospectus supplement with the US Securities and Exchange Commission, according to a statement. The proceeds will be used for “general corporate and working capital purposes,” it said.  

The announcement came on the heels of first-quarter sales that beat Wall Street’s expectations. 

The stock fell 3.2% in premarket trading early Thursday. The shares had gained 1.4% this year through Wednesday’s close. 

Goldman Sachs will serve as the sales agent in the offering, Beyond Meat said. The sales can be made at any time, and could be carried out over the counter or in privately negotiated transactions. 

Beyond Meat, which has struggled to keep consumers’ attention, is in the midst of a turnaround plan and is aiming for cash-flow positive operations by the second half of 2023. The company is making progress on that goal, Chief Executive Officer Ethan Brown said in comments to analysts on Wednesday and in the company’s earnings statement. 

Cash and short-term investments fell to $258.6 million, down from about $310 million at the end of last year. That measure has slipped for eight consecutive quarters. 

With high levels of inflation eroding purchasing power, Beyond Meat has reduced prices, but that has eaten into profitability. The company’s latest results show that while retail sales are still falling, there are positive signs in international food service, where revenue doubled. 

The company posted revenue of $92.2 million in the first quarter, above the average analyst estimate of $90.7 million compiled by Bloomberg. It also posted a loss of $45.8 million, excluding items such as taxes and interest. That was slightly better than analysts’ estimates of a $48 million loss. 

“Overall, the quarter produced mixed results,” said Arun Sundaram, an analyst at CFRA. “Although operating losses are narrowing and the cash-burn rate is slowing, the company continues to struggle with weak demand in the US, particularly in the retail sales channel due to inflationary pressures on consumer budgets and rising competition.” 

US revenue was $58.8 million, below market expectations, while international revenue of $33.4 million outpaced estimates. 

Beyond Meat improved its outlook on gross margin for the full year based on an accounting change to how it assesses the value of “large fixed assets.” The forecast for 2023 revenue remained in a range of $375 million to $415 million. 

The category of meat substitutes has been under pressure for over a year now. By volume, sales of refrigerated meat alternatives slid 19% in the 52 weeks ending April 23, according to market-data tracker Circana. Frozen meat alternatives fell 6.3% by the same measure.

With sales slumping, Beyond Meat has slashed spending and trimmed operational costs, including rounds of layoffs last year. Job cuts have continued in recent days, according to people familiar with the matter who asked not to be named because they aren’t authorized to speak for the company. Beyond Meat has also reduced parental leave benefits, according to documents reviewed by Bloomberg.

A company spokeswoman did not respond to requests for comment about layoffs and benefits.

(Updates with premarket share trading)

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