Beyond Meat (NASDAQ:BYND) shares surged nearly 11% today after the plant-based meat products provider announced cost reduction measures, revised its full-year outlook, and provided select numbers for the third quarter.
The company expects revenue of $75 million alongside a negative gross profit range of $7 million to 48 million for the third quarter. Analysts expect the company to report a net loss per share of $0.85 for the quarter on November 8.
Beyond Meat continues to witness sector-specific and consumer headwinds. In a bid to improve its cost structure, the company has announced a 19% reduction in its global non-production workforce and is reviewing its pricing strategy to drive gross margin expansion.
The company’s third quarter was marked by weaker-than-anticipated sales volumes, an unfavorable product sales mix, and promotional programs that failed to deliver as expected. Importantly, the company is also experiencing sales weakness in its core products, including Beyond Burger, Beyond Beef, and Beyond Sausage.
Amid these challenges, BYND now expects net revenue for Fiscal year 2023 to be between $330 million and $340 million, implying a decline of 21% to 19% over 2022. Gross profit for the year is anticipated to be breakeven, with operating expenses anticipated at $245 million or less (before separation costs). Additionally, BYND has initiated a global operations review and is narrowing its commercial focus to select growth opportunities. This could potentially mean the company’s exit from select product lines.
What Is the Future of BYND Stock?
Overall, the Street has a Moderate Sell consensus rating on Beyond Meat. The average BYND price target of $7.19 implies a modest 12% potential upside.
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