Beyond Meat’s (NASDAQ:BYND) stock fell Tuesday after the company reported weak sales, cut its full-year revenue forecast and walked back its goal of becoming cash-flow positive in the second half of the year.
The company, which makes meat substitutes, has struggled for roughly two years as U.S. consumer interest in its products has waned. As its sales have declined, Beyond has turned its attention to cutting costs and becoming a profitable company.
However, CEO Ethan Brown told analysts on the company’s conference call Monday evening that its weak sales will likely delay its target of becoming cash-flow positive by the second half of 2023.
U.S. demand for Beyond’s meat alternatives appears to be declining at a faster rate, even as the company cuts its prices 8.6%, mostly through discounts. Its U.S. retail volume fell 34% during the period, while its domestic food service volume cratered 44%
Beyond’s second-quarter net sales fell 30.5% to $102.1 million, falling short of Refinitiv estimates of $108.4 million. The company reported a loss of 83 cents per share, beating the loss of 86 cents per share expected by Wall Street.
Beyond also cut its full-year revenue outlook to a range of $360 million to $380 million, compared to the $388 million Wall Street expected, according to Refinitiv.
BYND shares ditched $3.14, or 20.8%, to $12.14.