Beyond Meat announced it is laying off nearly 1 in 5 employees after posting another quarter of disappointing financial statements.
According to the company, revenue for 2023 is expected to drop by about 20% compared to a year earlier. The company said it had about $75 million in net revenue in the third quarter of 2023, which is down from $82.5 million from the same quarter in 2022 and $106 million in 2021.
In 2021, the company posted a gross profit of $117 million. Last year, the company had a $2.9 million loss. The company said for 2023, it expects to break even despite a $7 million to $8 million loss in the third quarter.
“We anticipated a modest return to growth in the third quarter of 2023 that did not occur, reflecting further sector-specific and consumer headwinds," CEO Ethan Brown said. "Even as we implement measures to address those headwinds that are within our sphere of influence, we intend to pursue a further, sizable reduction of operating expenses to improve our cost structure."
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Beyond Meat's stock has dropped significantly over the last two years. The company's stock price is only about 5% of what it was trading for in mid 2021.
There is also more competition for vegetarian and vegan meals. Data from Vegetarian Resource Group suggests that the number of vegetarian Americans increased by 33% from 2012 to 2022.
While Beyond Meat is publicly traded, its top competitor Impossible Burger is not, meaning it's unclear whether it has seen a significant change in sales. Impossible Burger has been introduced in a number of retailers and restaurants. Burger King restaurants have been among the most prominent restaurants to carry Impossible Burger.
Beyond Meat data has shown that sales in the U.S. have seen a steeper decline than internationally.
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