Shares in Beyond Meat Inc (NASDAQ:BYND) tanked by a tenth overnight as the plant-based meat pioneer warned people are switching back to eating animals to save money.
Net revenues fell by 30% to US$102 million in the three months to end June, with forecasts for the year reduced by around 10% to between US$360-380 million.
Doubts about the health benefits of vegan foods have also had an impact on sales, said chief executive Ethan Brown.
“This change in perception is not without encouragement from interest groups who have succeeded in seeding doubt and fear around the ingredients and process used to create our and other plant-based meats," Brown noted during an earnings call.
Beyond Meat has been trimming its cost base through staff cuts and this helped net losses reduce to US$53.5 million from US$97.1 million.
Shares in the non-meat burger and sausage maker have been dropping steadily since a hugely successful IPO as competition has grown and non-vegan consumers have proved reluctant to change eating habits in the quantities expected.
Shares fell US$1.82 to US$13.45 in overnight trading compared to their 2019 float price of US$25.