(Reuters) -Beyond Meat on Wednesday withdrew its annual sales target as macroeconomic volatility and high inflation in the United States added further pressure on faux-meat makers already struggling with weak consumer demand.
It had earlier forecast annual net revenue of $320 million to $335 million.
The company’s shares were down 5.5% in extended trading after it missed expectations for first-quarter results and forecast current quarter net revenues below estimates.
The stock has fallen for four years straight, and are down about 33% so far in 2025 as plant-based meat products struggled to take off among consumers in the U.S. who are skeptical of the products’ taste and manufacturing processes.
“As the first quarter of 2025 progressed to a close, we saw a slowdown in consumption as the uncertain macroeconomic environment likely exacerbated category challenges,” CEO Ethan Brown said.
Faux meat is also more expensive than animal protein products and with inflation pressuring household budgets, demand has contracted further for plant-based alternatives.
Packaged foods giant Unilever is also struggling to offload its plant-based meats brand Vegetarian Butcher.
Beyond Meat’s first-quarter revenue fell 9.1% to $68.7 million, missing analysts’ average estimate of $75.01 million, according to data compiled by LSEG.
In the company’s U.S. retail channel, its biggest segment, revenues fell 15.4% in the first quarter, while revenues in the foodservice segment in the country fell 23.5%.
Still, Beyond Meat’s international business remained a green shoot, with revenue rising in both retail and food service segments.
The California-based company expects second-quarter net revenues in the range of $80 million to $85 million, compared with analysts’ average estimate of $93.5 million, according to data compiled by LSEG.
Beyond Meat company reported first-quarter loss per share of 69 cents, wider than estimates of 48 cents.
The company also closed a $100 million debt financing from Ahimsa Foundation, a non-profit organization for plant-based food.
(Reporting by Juveria Tabassum in Bengaluru; Editing by Leroy Leo)
