Beyond Meat’s Q3 Revenue Outlook Sparks Market Reaction
Beyond Meat's stock tumbled 11% on Friday despite projecting third-quarter revenue of $70 million, slightly surpassing analyst expectations. The plant-based meat company's shares had surged nearly 240% in the prior five days, fueled by retail trader enthusiasm and short squeeze dynamics.
Revenue guidance remains within the company's previously announced $68-$73 million range but reflects a 13.6% year-over-year decline from 2022's $81 million. Gross margins are expected between 10-11%, weighed down by $1.7 million in costs from suspended Chinese operations.
The outlook includes a material non-cash impairment charge and $2 million in one-time legal expenses from a manufacturing dispute. Adjusted margins of 12-13% suggest modest progress in cost containment amid persistent demand softness in the alternative protein sector.
