Beyond Meat withdraws sales forecast as demand drops, inflation bites

USA – Beyond Meat has pulled back its full-year revenue guidance, citing an uncertain U.S. economic environment and softening demand for plant-based meat products.

The company had previously expected to earn between US$320 million and US$335 million in annual net sales, but it has now abandoned that forecast.

Shares of the California-based firm dropped by 5.5% in after-hours trading following a disappointing first-quarter earnings report and a weaker-than-expected projection for the current quarter.

The stock, which has declined each year since 2021, is already down about 33% in 2025 as more consumers question the taste and production methods of plant-based meat.

Company chief executive Ethan Brown said consumption weakened toward the end of the first quarter, attributing the trend to broader economic concerns that may be making existing challenges worse.

With meat alternatives priced higher than traditional animal products, many consumers facing tight household budgets are opting out of more expensive vegan options.

Struggles in the U.S. Market

Beyond Meat’s problems mirror those of other players in the segment, including packaged food company Unilever, which is having difficulty selling its plant-based brand, Vegetarian Butcher.

In the three months ending in March, Beyond Meat posted US$68.7 million in revenue, a 9.1% year-over-year drop and below the average analyst forecast of US$75.01 million, according to data from LSEG.

Sales in the U.S. retail channel, its largest source of income, declined 15.4%, while domestic foodservice revenue dropped 23.5%.

Although performance in its home market was weak, the company saw growth in international retail and foodservice, offering some relief from the declining trend in the U.S.

Lower Expectations Ahead

For the second quarter, Beyond Meat expects revenue between US$80 million and US$85 million, falling short of analysts’ projected average of US$93.5 million, based on LSEG data.

The company also posted a first-quarter loss of 69 cents per share, which was steeper than analysts’ estimate of 48 cents.

As part of efforts to stabilize its operations, Beyond Meat has secured US$100 million in debt financing from the Ahimsa Foundation, a non-profit organization that supports plant-based food initiatives.

Despite the funding boost, the outlook remains uncertain as consumer interest in faux meat continues to cool under economic pressure.

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