Beyond Meat cuts sales forecast as consumers shun pricier faux meat

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Beyond Meat cuts sales forecast as consumers shun pricier faux meat

Beyond Meat Inc on Thursday lowered its revenue forecast for the year and announced job cuts as rising inflation hurt the company's efforts to make its pricier plant-based meat more affordable for consumers.

Aug 4 (Reuters) - Beyond Meat Inc (BYND.O) on Thursday lowered its revenue forecast for the year and announced job cuts as rising inflation hurt the company's efforts to make its pricier plant-based meat more affordable for consumers.

Higher prices of plant-based meat have slowed the growth of the category with people trading down to lower-priced chicken and beef, Beyond Meat Chief Executive Ethan Brown said on an earnings call.

The second quarter saw sequential contraction in U.S. household penetration of plant-based meat for the first time in more than four years, Brown said, citing data from Numerator.

"(The guidance cut) calls into question how long Beyond Meat's liquidity will last to fund their future growth.

Beyond Meat also said it would aim to reduce operating expenses, after its loss of $1.53 per share for the second quarter was much wider than analysts' expectations of $1.18.

To record nearly $8 million in annualized savings, Beyond Meat said it would cut roughly 4% of its global workforce.

Reporting by Praveen Paramasivam in Bengaluru; Editing by Maju Samuel and Anil D'Silva

Products from Beyond Meat Inc, the vegan burger maker, are shown for sale at a market in Encinitas, California, U.S., June 5, 2019.