Beyond Meat Inc. shares
BYND,
slid 10% in premarket trade Friday, after the plant-based food company issued a revenue warning, announced a plan to cut about 200 workers and said it’s cutting other costs as it makes a strategic shift aimed at achieving positive cash flow operations. The company said the job cuts account for about 19% of its total global workforce. It will book a roughly $4 million one-time cash charge of about $4 million in the third quarter to cover the cuts. The company is now expecting third-quarter revenue of about $82 million, down 23% from the year-earlier period and below the FactSet consensus of $113.6 million. For the full year, it expects revenue to range from $400 million to $425 million, down from prior guidance of $470 million to $520 million. The FactSet consensus is for $481.0 million. “While the company continues to review the drivers behind recent performance, the company believes it has been negatively impacted by ongoing softness in the plant-based meat category overall, especially in the refrigerated subsegment, and by the impact of increased competition,” Beyond Meat said in a statement. “Inflation is believed to be an underlying factor exerting pressure on the category as consumers trade down into cheaper forms of protein, including animal meat. ” The cost cuts are expected to deliver savings of about $39 million over the next year. Shares are down 77% in the year to date, while the S&P 500
SPX,
has fallen 23%.
