A long time in the making, we are receiving very positive reviews from early customer tests. And as you do that in the stores where we can really control for noise, we are seeing some very good results. I think first and foremost, it's really around we are emphasizing total profit dollars versus percent margin. Thank you. It is going to take longer than it looked like two or three years ago. Invest better with The Motley Fool. Now, the second quarter is obviously lapping a very, very significant quarter for us last year, I think, at $147 in revenue. The second is there is a induced level of ambiguity, I think, around the health benefits of our products. Both offerings contain strong advances in sensory profile, particularly around delivery of animalic and serum-like notes within a convincing yet neutral beef flavor. John Baumgartner -- Mizuho Securities -- Analyst. So, I can't really dive too much into the repeat data and things of that nature. Thank you, Paul, and good afternoon, everyone. And if I do nothing else and help the people on this phone call understand this, they saw a drop in bad cholesterol, statistically significant drought. And it just kind of looks like given you're the largest player, right, is that the category itself has compressed, but driven more by you, right, let's say, than others. The resulting change in estimate reduced cost of depreciation expense in the quarter by approximately 5.1 million or 5.5 percentage points of gross margin relative to depreciation expense utilizing our previous estimated useful lives. Please go ahead. We are, again, very confident in the progression of the business is making. I will say we're just, as I mentioned in my remarks, really proud to be working with McDonald's in Europe and really proud to be working with Yum! Provisions Company, a Harrison, Ohio establishment, is recalling approximately 200 pounds of ready-to-eat (RTE) chili topping product due to misbranding and an undeclared allergen, the U.S. Department of Agriculture's Food Safety and Inspection Service (FSIS) announced . When we think about some of the challenges to consumer adoption and plant-based often comes up as the premium price point relative to animal-based proteins. So, it's in no way a signal that we're needing the cash immediately. Two possibly related questions. This document is available in the Investor Relations section of Beyond Meat's website at www.beyondmeat.com. Great question. Can you just touch on -- you mentioned your inventory came down a little bit. And so, it's just a question of optimizing the combination of those factors. On February 3, 2023, the total pounds of recalled sausage increased to . You guys seem to be finding some success over in Europe with your product. I'm pleased that our first-quarter results demonstrate solid progress against our strategy and plan. That's a mix and some of the pricing programs. Turning to our strategic partners and long-term opportunities, we are encouraged by the success of the plant platform in Europe, which is contributing to our year-over-year growth of 100% in international foodservice. In the Netherlands and the U.K., we rolled out a new range of plant-based chicken products. ET BYND earnings call for the period ending March 31, 2023. Thank you for the question. There is no cost or obligation to you. I think we're finally going to get this business back to being a pretty decent margin and seeing growth again in the second half of the year, which I'm really excited to do. And so, we would, of course, love to be able to hit that mark in both the third quarter and the fourth quarter. But in this particular case, again, like once you start to really focus on this goal of cash flow positive, J&J operating model toward more sustainable growth. And then -- so, Adam, on your question regarding the guidance around cash flow positive. Vegan Burger Meat, Crumbles, & Sausages | Beyond Meat Get our best recipes, grocery finds, and clever kitchen tips delivered to your inbox. -- did some good things. Beyond Meat, Inc. 2023 First Quarter Conference Call. Our decision-making is governed by achieving and then sustaining over time, cash flow post operations. Food Service | Beyond Breakfast Sausage | Beyond Meat And it hasn't been a straight line, but it's -- but I think the arc of this thing is going to continue to be impressive. Though net revenues declined 16% year over year to 92.2 million as we continued to navigate the challenging environment, we drove a 15% sequential increase relative to Q4, representing our strongest Q4 to Q1 percentage increase since the first quarter of 2019. Specifically in the frozen category, Beyond Meat grew units 20.3% and dollars 28.8% when comparing Q1 2023 to Q4 2022. And again, I think some really good stuff in there. There are far fewer kind of traditional roadblocks or ways of thinking that might get in the way of it. Can I ask -- I guess the main question is about the return to cash flow positive in the second half of the year. On December 9, 2021, after the market closed, multiple media sources reported that Taco Bell had cancelled a planned product test due to ongoing quality concerns. For more information about the firm, please visit www.bespc.com. Moving further down the P&L, we saw $4.1 million increase in net interest income and foreign currency transaction gains compared to the year-ago period, partially offset by a $2.6 million increase in loss from our unconsolidated joint venture, primarily reflecting limited economic activity at TPP in the year-ago period. Over 50,000 pounds of charcuterie-style sausage recalled over listeria 2 SKU in frozen plant-based meat at a key retail customer. We're making the steps that you should make to do this. And during the course of this call, management may make forward-looking statements within the meaning of the federal securities laws. Jun 13, 2023. All factors are pointing to it. That's it. The recall includes several different sausage products made by American sausage makers. Today's last question comes from John Baumgartner with Mizuho Securities. press release. June published on 06/27/2023 Recalls in June 2023 Browse by year 2023 Browse by month January 2023 (41) February 2023 (37) March 2023 (46) April 2023 (40) May 2023 (41) June. So, yes, bringing Jerky in-house, we love to work with Pepsi. I'm immensely proud of all the members of our global team who have worked so tirelessly to bring this product forward. I just would like to hear you elaborate on kind of the decision to pursue that route for financing kind of the intention that are the aim of actually raising that much capital and kind of over what time frame do you think you could possibly do that? TPP will remain as a vehicle to evaluate a range of plant-based products for potential future business development. So, I think it's really more about Quarter 3 and 4 with the lower comps. So, there's just a lot of noise in the system right now. Then, on December 9, 2021, multiple media sources reported that Taco Bell had cancelled a . We recognize, however, that there is still much work to do as our absolute top-line results and category trends continue to reflect demand weakness amid broader macroeconomic headwinds. Unfortunately, none of the minerals seem to be chelated which would make them more valuable for your cat. Then, on November 17, 2021, an article was published in Bloomberg highlighting the delays in production and execution challenges Beyond Meat was facing. If you purchased or otherwise acquired Beyond Meat common stock and suffered a loss, are a long-term stockholder, have information, would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Brandon Walker or Marion Passmore by email at investigations@bespc.com, telephone at (212) 355-4648, or by filling out this contact form. The Motley Fool has a disclosure policy. But I really want to call out the operations team on this to be able to deliver products, restoring to at least some positive margin while we're also putting price pressure on it is impressive. The year-over-year decrease in opex was primarily driven by lower marketing expenses, including advertising, reduced nonproduction headcount expenses, lower production trial expenses, and decreased outbound freight costs included in our selling expenses. We continue to target the achievement of positive free cash flow within the second half of 2023. So, there's a lot of suggestions we should do that as well. So, that will actually be going into the frozen section, and I think will give us a lift. As a result of these disclosures, the price of Beyond Meat stock declined by $1.43 per share, or over 9.6%, from $14.78 per share to $13.35 per share. Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Capital expenditures totaled 5.3 million in Q1 of 2023 compared to 21.5 million in the year-ago period. Beyond Meat misleads consumers by inflating the amount of protein its imitation meat products contain on their labeling, a new class action lawsuit alleges. This is Matt Linden on for Andrew. But if you have the data, Look, for example, how our Cookout Classic product does relative to -- I think it's a bubble burger as a percentage of sales, and it's a pretty interesting ratio. *Average returns of all recommendations since inception. Inventory fell to 222.4 million, a reduction of 13.3 million compared to the previous quarter. Gross profit in the first quarter of 2023 was 6.2 million or 6.7% of net revenues compared to 0.2 million or 0.2% of net revenues in the year-ago period. Now, continuing on a cash flow positive trajectory. The products were produced from May 23, 2022, through November 25, 2022, and shipped to retail locations nationwide from December 23, 2022, through January 17, 2023. And so, we did increase our gross margin guidance for the full year. Beyond Meat assured investors and partners that it would ensure manufacturability through extensive testing, and that it was capable ofmanufacturing the unique plant-based meat products at commercial scale. We're making it taste more and more like animal protein. Beyond Meat is issuing a voluntary recall of our Feisty Crumbles. I would now like to turn the conference over to Paul. Please also note that on today's call, management may reference adjusted EBITDA, which is a non-GAAP financial measure. What's the outlook there in terms of just overall? So, first and foremost, our strategy and our goal, right, our goal rather, is not to be a high-priced niche item, right? And if you look at what we were able to accomplish swinging into positive this quarter relative to where we were, let's say, in the third quarter at negative 18, you can see that some of the kind of systemic shocks that our business went through are starting to subside, and we're starting to, quarter over quarter, get back into a much stronger position with a business that is more appropriate for the current market. So, we believe some of that is still at play for sure. But Beyond Meat had a gross loss in 2022 of $23.7 million, which is a negative gross margin . This next quarter, the quarter we're in, is a high comp, but we're looking forward to really the second half of the year getting back to growth, getting better growth with a reasonable margin, and instituting some of these changes we're making team feels good, and we look forward to reporting in the next quarter. There's other premium categories in the store doing OK right now as well. Jeenah Moon for The. So, responding not only through our marketing efforts but through the products we're putting out to this question that's being raised, I think, largely by incumbent players around the health benefits of our products. Understanding price parity is a long-term goal. There's just so many variables that are moving. And then we're doing an overdue renovation of some of our key products and putting in products that are terrific. Recall Roundup: Charcuterie meats, eye drops and other recalls to know Any sort of details you can provide around the characteristics of the customer who's buying it there? Certain Beyond Meat executives profited enormously from the scheme described herein by selling hundreds of thousands of shares of their personally held Company stock at artificially inflated prices during the Class Period. We start getting around some of the leaning out that we've been doing in a more stable environment. 2 position with very short distribution life in a major retailer. 1:24. So, I guess how do you think about refrigerated going forward, independent of price points? Just Lubi, I wanted to understand the change around the depreciation impact to the gross margin. We're putting in marketing programs at a high level around taste and health. I think we do have to be successful there. More generally, the frozen category continues to be a growth area for our brand, where sequential and year-over-year dollars and units were both up significantly. The combined impact is total cash use of 48.6 million for the quarter, down from 66.8 million in Q4 of 2022 and a steep 74% reduction on a year-over-year basis.