Plant-based meat maker Beyond Meat recently reported mixed first quarter results, but remains optimistic about the future. The company’s President and CEO, Ethan Brown, stated during a conference call with investors that a new, healthier burger hitting U.S. shelves will help boost sales. Despite lower demand for Beyond Meat products in the U.S. and abroad, the company believes it is on track for a successful year.
The first quarter saw a decline in revenue for Beyond Meat, with a fall of 18% to $75.6 million. This marks the eighth consecutive quarter of year-over-year revenue declines for the company. U.S. retail demand was soft, and sales were impacted by the discontinuation of Beyond Meat Jerky. Both retail and food service sales in the U.S. were down 16%, while international retail sales fell 12% and international food service sales dropped 29%.
According to Brown, inflationary concerns affected demand for Beyond Meat products in some markets, such as the United Kingdom and Canada. However, the company remains positive about its growth in Europe, especially with the expansion of sales for the McPlant burger, co-developed with McDonald’s. The new iteration of the Beyond Burger, with improved health benefits such as 60% less saturated fat and more protein, is expected to address consumer concerns and drive sales.
Despite the challenges faced in the first quarter, Beyond Meat reiterated its outlook and expects net revenue in the range of $315 million to $345 million for the full year, compared to $343 million in 2023. However, investors appeared skeptical and the company’s shares dropped 15% in after-hours trading. The company’s first quarter net loss narrowed to $54.4 million, but adjusted for one-time items, the loss was higher than analysts’ expectations at 72 cents per share.
Beyond Meat remains committed to its mission of providing plant-based alternatives that are not only good for the environment and animal welfare, but also for consumers’ health. The rollout of the new Beyond Burger and a planned marketing campaign to promote its health benefits are part of the company’s strategy to drive growth and overcome the challenges faced in the first quarter. Despite the initial setbacks, Beyond Meat is confident in its trajectory for the rest of the year.
