Plant-based meat company Beyond Meat () reported a 30% revenue decline for the second quarter due to falling demand for its products. The company's shares were down about 21% in early trading Monday. 

Inflation Ate Into Demand For Plant-Based Meat

Beyond Meat's second-quarter revenue of $102.1 million was 30.5% lower than the revenue reported in the same quarter last year. U.S. revenue fell nearly 40%, while international revenue declined 8.7%. The company also reported a 24% decrease in the volume of its products sold.

The company blamed i🐟ts performance on weak consumer demand and macroeconomic factors such🐼 as “high inflation, rising interest rates, and ongoing concerns about the likelihood of a recession.”

And that has been the story since last year. According to its 2022 annual report, inflation pushed customers toward choosing cheaper proteins at grocery stores. The company is also facing growing competition and is combating negative claims that plant-based meat is unhealthy.

Beyond Meat slashed its 2023 revenue guidance by almost double digits to the range of $360-$380 milliꦚon.

Tough Road Ahead For Beyond Meat

As consumers pulled back spending on plant-based meats, investor interest in Beyond Meat dropped as well. The company's shares had soared after its 澳洲幸运5官方开奖结果体彩网:Initial Public Offering to almost $240, but now trade at about $12.

A shake up in company leadership could also make shareholders wary. Last September, Beyond Meat’s chief operations officer left the company after he allegedly bit a man’s nose during a road rage incident outside a football game. Since then, the company let go of its chief global growth officer and saw the departure of its chief supply chain officer.

Despite today's sharp decline, Beyond Meat shares are down only about 2.5% since the beginning of the year.