BEYOND MEAT REVENUE FALLS AS DEMAND IN U.S. DROPS

Beyond Meat’s revenue fell nearly 9 percent in the third quarter as higher sales of its plant-based meat in Europe failed to make up for plummeting demand in the U.S.

Beyond Meat on Wednesday reported revenue of $75.3 million for the July-September period. That was far short of the $86.5 million Wall Street had anticipated, according to analysts polled by FactSet.

Beyond Meat cut its third-quarter and full-year revenue forecast last week, saying an anticipated rebound in plant-based meat sales during the quarter didn’t occur. The El Segundo-based company said it would cut 65 non-production jobs — about 19 percent of its workforce — and conduct a broader review of its operations.

In a conference call with investors Wednesday, Beyond Meat President and CEO Ethan Brown said the company is considering cutting underperforming product lines like plant-based jerky and reducing the size of its operations in China, where demand is growing but not as quickly as Europe. It’s also continuing to cut inventory.

U.S. demand for plant-based meat has plunged this year, partly due to consumer perceptions that the products are overly processed, unhealthy and too expensive. Beyond Meat said its U.S. retail sales fell 34 percent in the third quarter. Sales volumes were down even though the company lowered its prices. U.S. food service sales also fell 22 percent.

By comparison, retail sales rose 39 percent in international markets. International food service sales jumped 79 percent, largely due to European demand for its plant-based burgers and nuggets at McDonald’s, which doesn’t sell those products in the U.S.