Beyond Meat, the plant-based meat pioneer, told investors on Wednesday that it expects third-quarter revenue to land between $60 million and $65 million. The company said international demand helped cushion the blow from weaker sales in the United States, according to Reuters.
The guidance midpoint of $62.5 million sits just above the average analyst estimate of $62.2 million, based on LSEG data cited by Reuters. While the range is modest, it suggests the company may be finding a floor after a prolonged slump in the plant-based meat category.
Why international markets are picking up the slack
Beyond Meat has long viewed overseas markets as a key growth engine. In many countries, plant-based eating is still gaining traction, and the company has been expanding distribution and marketing efforts in Europe, Asia, and other regions. That international strength is now proving crucial as US demand has cooled.
The US market, by contrast, has been challenging. After a boom during the pandemic, when consumers experimented with plant-based burgers and sausages, sales have fallen as shoppers returned to traditional meat or traded down to cheaper options amid inflation. Beyond Meat has responded by rolling out new products, including its Beyond Immerse protein drinks, to try to reignite interest.
The company's latest guidance suggests that while the domestic market remains weak, the international business is growing enough to offset some of that pain. That dynamic is not unique to Beyond Meat. Other consumer food companies have also leaned on overseas growth to balance softer US performance. For example, McDonald's has seen overseas strength offset US missteps, and its drinks push has gained ground abroad while US sales slipped.
What this means for investors
For everyday investors, the key takeaway is that Beyond Meat is still in a turnaround phase. The company has been burning cash and struggling to return to profitability, and its stock has been volatile. The fact that its revenue guidance came in slightly above expectations is a positive sign, but it is far from a full recovery.
Investors should watch whether international growth can continue to accelerate and whether new products like Beyond Immerse can gain traction in the US. The company's ability to manage costs and move toward profitability will also be critical. As with any turnaround story, there is risk: if overseas growth slows or US sales deteriorate further, the stock could face more pressure.
It's also worth noting that Beyond Meat operates in a highly competitive space. Traditional meat companies, as well as other plant-based brands, are vying for the same consumers. The company's success will depend on its ability to differentiate its products and keep costs in check.
For now, the Q3 guidance offers a small measure of optimism. But investors should approach Beyond Meat with caution, keeping in mind the broader challenges facing the plant-based meat industry.
