Beyond Meat cut the top end of its annual revenue forecast on Wednesday, as cost-conscious consumers cut back spending on its expensive faux meat products and switched to cheaper alternatives.
Shares of the company were down about 5% in extended trading.
While Beyond Meat raised product prices to counter still-high ingredient costs, demand for its plant-based meatballs and steak slumped.
The company's quarterly sales volumes fell 7.1%, compared with a 3.5% rise a year ago.
Animal Proteins
Lower-to-middle income consumers, who have turned frugal over the past year have been satisfying their cravings with affordable animal proteins as they increasingly look to limit expenses.
Beyond Meat's customers in restaurant and fast-food industry like McDonald's have been struggling to lift sales owing to weaker demand, further hitting the vegan burger meat producer's performance over the last two years.
For fiscal 2024, the company expects net revenue in the range of $320 million (€298 million) to $330 million (€307 million), compared with its prior forecast of $320 million to $340 million (€316 million).
Increase Cash Reserves
"Looking ahead, we expect to increase our cash reserves by year-end and pursue further balance sheet restructuring in 2025," CEO Ethan Brown said.
However, easing costs of materials and logistics as well as increased net revenue per pound aided Beyond Meat's quarterly margins, which expanded to 17.7% compared to a 9.6% drop a year ago.
The company's quarterly net revenue rose 7.6% to $81 million from a year earlier. Analysts had estimated a 7.2% rise to $80.7 million, according to data compiled by LSEG.
On an adjusted basis, the company reported a loss of 41 cents per share for the quarter ended 28 September, compared with analysts' estimate of a loss of 44 cents.
