Beyond Meat slashes its sales forecast

Bloomberg

Beyond Meat Inc slashed its revenue outlook for the full year, saying that shoppers are trading down from its plant-based options to cheaper animal proteins.
The shares, which have lost about 50% of their value so far this year, fell 1.1% in New York trading.
The maker of plant-based burgers is in a race to increase output and bring new products to the market — an expensive process that has raised concerns about whether its pace of spending is sustainable. At the same time, the company faces volatile demand for its relatively high-priced products as inflation erodes purchasing power. The company said gross profit was negative, partially because of liquidating slow-selling products.
“Today’s inflationary pressure is a significant concern for the plant-based meat industry,” said Shoggi M Ezeizat, a consumer stocks analyst at Third Bridge. “Flexitarians could easily switch back to lower-cost animal protein as they seek to reduce their discretionary spend.”
In a call with analysts, Chief Executive Officer Ethan Brown acknowledged that consumer buying patterns have shifted away from plant-based meat.