Stock drops by more than a fifth a day after weak results
“The guidance cut is disappointing, especially considering the decent start to the year,” said Arun Sundaram, an analyst at CFRA. “We’re now back to talking about cash burn and the need to raise capital, as it is now highly unlikely that the company will be cash-flow positive anytime this year. Something needs to change to prevent this ship from sinking.”
Chief executive Ethan Brown said Beyond Meat expects modest sales growth in the third and fourth quarters from a year earlier. In a call with analysts, he said that recent heatwaves reinforce the need to reduce greenhouse gases, adding that broad consumption of plant-based meat is inevitable. Brown also said the company’s long-term plans should remain in place in spite of its struggles. Credit Suisse analyst Robert Moskow asked on Monday’s conference call if a “shrinking-to-win” strategy might be appropriate, with a target of being a business that generates $250 million to $350 million in annual sales. Brown said he disagreed “rigorously with that future.”
Weakness in the US, however, remains a thorny challenge for both Beyond Meat and its peers. By volume, sales of refrigerated meat alternatives slid 22 per cent in the 52 weeks ending July 16 from the same period a year earlier, according to market-data tracker Circana. Frozen meat alternatives fell 10 per cent by the same measure.
Ireland Latest News, Ireland Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Shares in Beyond Meat fall after backing away from cash-flow targetThe company reported second-quarter revenue of $102 million
Read more »
Shares in Beyond Meat fall after backing away from cash-flow targetShares in Beyond Meat fell late on Monday evening in the United States after the company said it’s unlikely to become cash-flow positive in the second half of 2023.
Read more »
Minimum wage employees face challenges beyond moneyPeople on lower pay work longer shifts at more unsocial times and are less likely to be unionised, report finds
Read more »
ASOS and H&M both stock incredible Victoria Beckham dress dupes | Her.ieVictoria Beckham’s line of clothing is celebrated as one of the most chic and well-made brands on the market right now. The dress will set you back a solid
Read more »
Nurse with long Covid denied special leave pay to get €127,000 for lost earningsWoman was infected at start of the pandemic in March 2020 when PCR testing was not available
Read more »
How to retrofit your home and slash your energy billsWant to save money this winter? From insulation and solar panels to heat pumps, Joanne Hunt looks at what you can do to retrofit your home, slash your energy bills and stick to your budget.
Read more »