(Bloomberg) -- Beyond Meat Inc. fell in late trading after second-quarter sales missed Wall Street’s expectations and the company trimmed its revenue outlook — a sign the maker of plant-based burgers is struggling to meet its goal of becoming profitable in the second half of the year.
Second-quarter revenue of $102 million fell short of the average estimate compiled by Bloomberg. The company reported weakness in the US market and trimmed its 2023 revenue outlook to a range of $360 million to $380 million, down from a previous range of as much as $415 million.
The stock fell 9.7% at 4:14 p.m. in late trading in New York on Monday. The shares had gained 24% this year through Monday’s close.
“While we are reducing our full-year 2023 net revenues outlook, we nevertheless expect a modest return to year-over-year top-line growth in the third and fourth quarters of 2023, and, relative to the first half of 2023, a meaningful reduction in cash consumption and an increase in gross margin,” Chief Executive Officer Ethan Brown said in the statement.
The maker of the Beyond Burger has struggled to maintain consumer interest amid high prices and questions about its products’ taste and texture. Sales have slumped across the category: By volume, sales of refrigerated meat alternatives slid 22% in the 52 weeks ending July 16 from the same period a year earlier, according to market-data tracker Circana. Frozen meat alternatives fell 10% by the same measure.
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