Beyond Meat has engaged an external adviser to revitalize its struggling alternative meat business, as the company faces a notable decline in sales alongside workforce reductions.
Recent reports indicate that the California-based supplier of alternative proteins plans to remove “meat” from its corporate title, signifying a shift away from imitating animal-derived products. In conjunction with this strategy, Beyond Meat has appointed an interim chief transformation officer.
John Boken from consultancy AlixPartners took on this role on August 6, bringing with him valuable corporate turnaround and restructuring experience, as detailed in the company’s second-quarter filings.
The latest financial results reflected a further decline in revenue during the three months ending June 28. Notably, the only sector showing growth was foodservice in the U.S., while both U.S. and international retail sales, as well as the out-of-home category internationally, fell significantly.
Total group sales revenue for the quarter slid by 19.6%, reaching just under $75 million, with sales volumes decreasing by 18.9%, primarily impacted by U.S. retail and international foodservice. For the upcoming third quarter, Beyond Meat forecasts a further decline in net revenues, estimating a potential total of $68–73 million.
Additionally, founder, president, and CEO Ethan Brown reiterated previous statements regarding the lack of forward guidance. The company announced 48 layoffs in the U.S., representing 6% of its entire workforce.
Beyond Meat explained its absence of a financial outlook, stating, “The company continues to experience an elevated level of uncertainty within its operating environment, which has, and management believes could continue to have, unforeseen impacts on the company’s actual realized results.”
Since going public in 2019, Beyond Meat has yet to report a net profit. During the second quarter of fiscal 2025, losses slightly decreased to $33.2 million, compared to a $34.5 million loss during the same period the previous year. Year-to-date losses totaled $86.1 million, a small improvement over the $88.4 million loss recorded for the same timeframe.
Unfortunately, there were few positive developments. Gross profit dropped to $8.6 million from $13.7 million, following $1.7 million in costs associated with the company’s earlier decision to exit the Chinese market. Moreover, operating losses widened to $38.8 million from $33.9 million, and adjusted EBITDA remained in the negative, reporting a loss of $26 million compared to $23 million previously.
John Baumgartner, managing director at Mizuho Securities, commented that the second quarter “reinforces the complexity of fundamentals.” He expressed growing caution about the market outlook, citing economic headwinds and increasing demand for animal meat. Baumgartner viewed the appointment of the interim chief transformation officer as a positive step, but noted that Beyond Meat is caught in a challenging cycle of needing to drive revenue growth while simultaneously cutting expenses.
In the second quarter, U.S. revenues reached $43.9 million, reflecting a 20.4% decline. Retail sales fell by 26.7% to $32.9 million, while the out-of-home category increased by 6.8%, totaling $11.1 million.
For international operations, sales revenue dropped by 18.4% to $30.9 million, with retail dipping by 9.8% to $15.9 million and foodservice decreasing by 25.8% to $15.1 million.
Brown expressed disappointment in the second quarter’s performance, highlighting ongoing softness in the plant-based meat category, particularly within U.S. retail and some international foodservice channels. He noted that Boken’s role includes “rapidly and aggressively reducing our operating expenses to fit anticipated near-term revenues; prioritizing increased distribution of our core product lines; and investing in margin expansion initiatives across these core products.”
Baumgartner concluded that it remains challenging for Beyond Meat, as “the category lacks appeal, and retailers are making adjustments.” He viewed the recent decisions related to Boken’s appointment and the job cuts favorably for their potential benefits to profitability and cash management, but emphasized the complexity of needing revenue growth while reducing available resources.
In summary, as Beyond Meat navigates these challenges, industry stakeholders should remain attuned to evolving trends within the food and beverage sector and the broader food and drink consumer trends shaping market dynamics.
