Beyond Meat missed market expectations for quarterly revenue on Wednesday, hurt by a relentlessly weak demand for its pricier faux meat patties.
Consumer sentiment about plant-based meat and its health benefits has taken a beating in the last couple of years. Sticky inflation has also caused consumers to prefer cheaper animal proteins instead of pricier plant-based alternatives.
Earlier this month, the company trimmed its annual revenue forecast and lowered its gross margin expectations as it grapples with persistent softness in demand for plant-based meat.
The company also announced fresh job cuts as part of a cost-reduction plan.
Net revenue for the third quarter fell 8.7% to $75.3 million, compared with analysts' average estimate of revenue of $85.4 million, as per LSEG data.
(Reporting by Juveria Tabassum; Editing by Krishna Chandra Eluri)
