Beyond Meat sales dwindle as plant-based boom withers

McDonald's became the latest chain to not go through with broader launch of Beyond Meat products

Beyond Meat Inc. is headed for an underwhelming second quarter as the plant-based food hype withers. Analysts have slashed forecasts for Beyond Meat's sales on supply-chain concerns and the decreasing demand that pulled down shares of the plant-based meat maker. Difficulty in changing the cultural tastes of consumers is one of the main issues with the adoption of plant-based vegan options. John Baumgartner, an analyst, said. "Recruiting their next phase of consumers requires more innovation and better-tasting products." According to Refinitive IBES data, Estimates for Beyond Meat's second-quarter revenue have fallen by 10% over the last three months. McDonald's Corp became the latest chain to not go through with an immediate broader launch of Beyond Meat products after concluding its U.S. test of a burger made with plant-based meat without confirming future plans.

Tests at Panda Express and Yum Brands Inc's KFC, Pizza Hut, and Taco Bell have also yet to lead to a permanent or U.S.-wide launch, while Dunkin, Hardee's, and A&W have discontinued products after launching, according to brokerage Piper Sandler. Reviews for Beyond Meat's plant-based jerky also indicate skepticism about the taste of the product, stoking concerns about the sustainability of its sales momentum, Piper Sandler analyst Michael Lavery wrote in a note on Friday.