Beyond Meat warns of “material” impairment in blow to share price

Core Viewpoint - Beyond Meat is facing significant challenges, including an upcoming "material" impairment charge related to its long-lived assets, which may impact its financial performance and stock price [1][2][3]. Financial Performance - The company is projecting third-quarter sales revenue of approximately $70 million, which is a decrease from $81 million in the same quarter last year, despite a previous forecast range of $68-$73 million [4][5]. - Gross margins are expected to decline to about 10-11% for the third quarter, down from 17.7% in the same period last year, indicating ongoing financial struggles [5]. Stock Performance - Beyond Meat's shares have experienced significant volatility, dropping 23% to $2.185 at the end of US trading, following a debt-for-equity swap and a previous rally due to short-covering [3]. - The stock had previously fallen below $1.00, which poses a risk of delisting from Nasdaq, and is down approximately 42% year-to-date [4]. Strategic Moves - The company has engaged John Boken from AlixPartners as an external advisor to assist with corporate turnaround and restructuring efforts [6]. - Beyond Meat has not reported a net profit since its IPO in 2019 and has announced various cost-cutting measures, including job cuts and an exit from the Chinese market [6]. Financing - Earlier in the year, Beyond Meat secured a $100 million financing package from Unprocessed Foods, which includes an option for a minority stake in the company [7].