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Shares of Beyond Meat (NASDAQ:BYND) are down over 9% in pre-open trading after the company announced a strategic shift in a bid to achieve more sustainable growth.
President and CEO Ethan Brown commented, “Beyond Meat is implementing measures to drive more sustainable growth, emphasizing the achievement of cash flow positive operations within the second half of 2023.”
BYND announced it will cut about 200 jobs, which is about 19% of the Company’s total global workforce. Moreover, the company also cut its full-year revenue outlook to $400 million-$425 million from $470 million-$520 million. The new guidance is calling for a deceleration between 14% and 9%.
The Q3 revenue forecast is now set at $82 million, sharply below the consensus of $115.6 million.
“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. 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,” BYND said in a press release.
Overall, BYND expects to benefit $27 million from cost-cutting activities. Following the latest changes, Beyond Meat expects cash flow to become positive in the second half of the next year.
