AP

Beyond Meat announces layoffs after lower Q2 sales

Aug 4, 2022, 4:15 PM | Updated: 4:56 pm

Plant-based meat maker Beyond Meat said Thursday it’s laying off 4% of its workforce after a difficult second quarter that saw cost-conscious customers bypass its higher-priced products.

El Segundo, California-based Beyond Meat said its revenue fell 1.6% to $147 million. That was short of Wall Street’s forecast of $149 million, according to analysts polled by FactSet. The company reported a net loss of $97 million, or $1.53 per share, which was also larger than analysts expected.

Beyond Meat President and CEO Ethan Brown said customers dealing with food price inflation traded down to cheaper store brands of plant-based meat or bought animal meat. Brown said the results magnified the importance of the company’s longtime goal of achieving price parity with animal-based meat.

Brown said Beyond Meat’s ground beef currently costs $8.35 per pound. That compares to an average of $4.90 per pound for animal-based ground beef, he said.

“In a kind of unfortunate way, it’s reinforcing our strategy and it’s propelling us and challenging us to try to wring cost out of our system as quickly as we can,” Brown said Thursday in a conference call with investors.

U.S. retail sales rose 2.2% thanks to sales of Beyond Meat Jerky, a new product introduced as part of a partnership with PepsiCo. But other products, including plant-based burgers and chicken, saw lower sales.

Beyond Meat gave no update on its partnership with McDonald’s, which recently ended a U.S. trial of the McPlant, a burger it developed in partnership with Beyond Meat. McDonald’s also hasn’t confirmed its future plans for the burger in the U.S.

Beyond Meat didn’t immediately say how many employees would be leaving the company. It employed 1,419 people __ including 311 full-time contract workers __ at the end of 2021, according to its annual report.

The company’s shares were flat in after-market trading Thursday.

Copyright © The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

AP

Former President Donald Trump sits in a courtroom next to his lawyer Todd Blanche before the start ...

Associated Press

Trump hush money trial enters new phase after defense rests without testimony from former president

Donald Trump's hush money trial is now closer to the moment when the jury will begin deciding the former president's fate.

2 days ago

UoA student convicted of first-degree murder after killing professor...

Associated Press

Former Arizona grad student convicted of first-degree murder in 2022 shooting of professor

A former University of Arizona grad student was convicted of first-degree murder after fatally shooting a professor on campus two years ago.

2 days ago

Rudy Giuliani bankruptcy filing defamation lawsuit...

Associated Press

Ex-NYC Mayor Rudy Giuliani, Arizona’s Kelli Ward plead not guilty in fake elector case

Giuliani appeared remotely for the arraignment that was held in a Phoenix courtroom. His trial will take place in October.

2 days ago

President Joe Biden gestures after speaking to graduating students at the Morehouse College commenc...

Associated Press

Biden tells Morehouse graduates that scenes in Gaza from the Israel-Hamas war break his heart, too

Joe Biden on Sunday offered his most direct recognition of U.S. students' anguish over the Israel-Hamas war.

4 days ago

Rudy Giuliani...

Associated Press

Rudy Giuliani is the final defendant served indictment in Arizona fake elector case

Rudy Giuliani has been served an indictment in Arizona's fake elector case for his role in an attempt to overturn the 2020 election.

5 days ago

Follow @ktar923...

Sponsored Content by Collins Comfort Masters

Here's how to be worry-free when your A/C goes out in the middle of summer

PHOENIX -- As Arizona approaches another hot summer, Phoenix residents are likely to spend more time indoors.

Sponsored Articles

...

Sanderson Ford

3 new rides for 3 new road trips in Arizona

It's time for the Sanderson Ford Memorial Day sale with the Mighty Fine 69 Anniversary, as Sanderson Ford turned 69 years old in May.

...

DISC Desert Institute for Spine Care

Sciatica pain is treatable but surgery may be required

Sciatica pain is one of the most common ailments a person can face, and if not taken seriously, it could become one of the most harmful.

...

Collins Comfort Masters

Here’s 1 way to ensure your family is drinking safe water

Water is maybe one of the most important resources in our lives, and especially if you have kids, you want them to have access to safe water.

Beyond Meat announces layoffs after lower Q2 sales