Beyond Meat Beats Q1 Estimates, Misses Q2 Guidance

Beyond Meat reported first-quarter earnings that exceeded Wall Street expectations on revenue and per-share losses Wednesday, though the plant-based food company issued second-quarter sales guidance below analyst forecasts amid ongoing volume declines.

The company posted revenue of $58.2 million, surpassing the average analyst estimate of $58.1 million, according to LSEG data. That figure marked a 15.3 percent drop from $68.7 million a year earlier, driven by a 19.5 percent decline in sales volume and losses in foodservice distribution. On an adjusted basis, Beyond Meat recorded a loss of 10 cents per share, better than the expected 12-cent loss and a significant improvement from a 77-cent loss in the prior-year period.

Management highlighted operational gains during the earnings conference call. Gross profit turned positive at $2 million, or a 3.4 percent margin, compared with a gross loss the previous year. Adjusted EBITDA loss narrowed to $27.8 million, aided by manufacturing efficiencies, product rationalization and reduced operating expenses, which fell about $14 million year over year due to restructuring, lower legal costs and headcount reductions. Quarterly cash use...