International

Sales under threat for Beyond Meat

Beyond Meat is headed for an unappetizing second quarter as the plant-based food craze withers in the face of several weak product tests at restaurants and mediocre reviews, according to Reuters.

Posted on Aug 10 ,04:16

Sales under threat for Beyond Meat

Analysts have slashed forecasts for Beyond Meat's sales on supply-chain concerns and waning demand that pulled down shares of the plant-based meat maker and peer Oatly Group from their lofty market debut levels.

"Part of the issue with the adoption of the category for new consumers is that you're not going to change cultural tastes overnight," Mizuho analyst John Baumgartner said. "Recruiting your next phase of consumers requires more innovation and better tasting products."

Estimates for Beyond Meat's second-quarter revenue have fallen by 10% over the last three months, according to Refinitiv IBES data.

Shares of Beyond Meat fell 6% after J.P. Morgan said McDonald’s ended its U.S. test of the McPlant burger, which uses Beyond’s meatless patties.

The fast-food giant confirmed that the McPlant test concluded as planned. Neither McDonald’s nor Beyond Meat has announced any plans for additional testing or a nationwide launch.

Beyond’s stock has fallen 53% this year, dragging its market value down to $2.06 billion. Wall Street has become skeptical over the company’s long-term growth opportunities as grocery sales lag. Moreover, buzzy partnerships with restaurant giants like Pizza Hut owner Yum Brands and McDonald’s haven’t progressed to many permanent nationwide menu offerings yet.

The burger chain has already started selling McPlant burgers in some international markets, including Sweden, Denmark, Austria, the Netherlands and the United Kingdom. In May, Beyond Meat CEO Ethan Brown said that the McPlant is selling well in the U.K. and Austria.

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