Armed with a “much improved balance sheet,” Beyond Meat aims to build a “global protein company for tomorrow” CEO Ethan Brown told analysts after another grim quarter.
The company, which posted a 13.3% year-over-year (YoY) decline in net sales to $70.2 million in the third quarter and a net loss of $110.7 million, blamed “category headwinds” for its dire performance.
However, Brown said Beyond is now in a position to move forward following recent moves to restructure its debt.
Speaking to analysts Tuesday, he said the firm would place “increasing emphasis on the word ‘Beyond’ versus ‘Beyond Meat’ as we go forward. And that’s really about broadening the aperture of our business. We’ve been in our turnaround phase for too long, and moving forward, you will not simply see more of the same from us. There is plenty of fight left in Beyond and enormous enthusiasm to use this reset to hasten our future as a global protein company for tomorrow.”
He added: “Because of the tremendous R&D capacity we built up over the last nearly 17 years, we understand plant protein and plant ingredients in a way that many other companies don’t. We have quite a bit of dry powder in terms of what we can go ahead and get into the market.
“And so this is where my confidence comes from. We are looking to transform not only the operational base, the margin of our company, but also the top line growth, and we’re thinking about that creatively and aggressively.”
Q3, 2025 by the numbers:
- Net revenue: -13.3% year over year (YoY) to $70.2 million, volumes -10.3%
- Net loss: $110.7 million
- Gross margins: 10.3%
- US retail revenue: -18.4% YoY to $28.5 million; volumes -12.6%
- US foodservice revenue: -27.3% YoY to $10.5 million; volumes -27.1%
- International retail revenue: -4.6% YoY to $15.8 million; volumes -12.5%
- International foodservice revenue: +2.3% to $15.3 million YoY; volumes +4.4%
- Outlook: Q4 net revenues are expected to be $60-65 million
Debt restructuring
The loss-making firm, which previously owed $1.2 billion in zero interest convertible notes due in 2027, recently exchanged the vast majority of this debt in exchange for:
- $209.7 million in new secured notes (that pay 7% interest) due in 2030
- 317.8 million new shares
As a result, it has significantly reduced its debt but seen its share price plunge further following the dilution.
Brown said: “Together with the nearly $150 million in cash we raised through the completion of our ATM [‘at the market’ offering] program, this represents a fundamental reset of our balance sheet.”
In a note to investors, TD Cowen said it remained “skeptical of the pace” of Beyond’s plans to reduce operational costs, adding: “They aim to return to 30%+ gross margin in several quarters, but this appears aspirational given the current trends and lack of near-term demand recovery.”
According to Brown, Beyond Meat will:
- Recalibrate production capacity to match [weaker] demand: “We built a system that was for much higher revenue than we’re currently facing.”
- “Continue to address misinformation surrounding our plant-based meats”
- Introduce more new products to consumers direct to consumer via its ‘Test Kitchen’ initiative
- Build back distribution in US retail, “prioritizing consolidated offerings [in the freezer section] at high impact chains [such as Walmart] to drive results.”
- Build distribution in “institutions, restaurant chains and other establishments that are more directly and explicitly focused on health and clean ingredients.”
