Beyond Meat trimmed its full-year revenue forecast on Monday, warning that demand for its plant-based meat products was slowing with no signs of recovery.
Shares of the company fell 4.5% in extended trading after missing second-quarter revenue estimates.
Bogged down by inflationary pressures, customers are altering their daily requirements and opting for lower-priced animal protein over healthier alternatives such as plant-based products.
This, coupled with increasing competition from rivals Tyson Foods and privately owned Impossible Food Inc has eroded Beyond Meat's market share in the plant-based meat category.
Beyond Meat has been "testing" price cuts to offer the company's core products at a price point that is at or below their animal protein equivalent.
The company forecast 2023 revenue between $360 million and $380 million, compared with its prior projection of $375 million to $415 million.
(Reporting by Ananya Mariam Rajesh in Bengaluru; Editing by Shilpi Majumdar)
