How is Beyond Meat responding to the decline in demand for plant-based meat alternatives?
Beyond Meat reports second quarter 2025 financial results
Beyond Meat, Inc., a leader in plant-based meat, reported financial results for its second quarter ended June 28, 2025. Beyond Meat President and CEO Ethan Brown commented, “We are disappointed with our second quarter results, which primarily reflect ongoing softness in the plant-based meat category, particularly in the U.S. retail channel and certain international foodservice markets. We are responding by accelerating our transformation activities, including more 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.”
Brown continued, “To this end, we are expanding our partnership with AlixPartners, including welcoming John Boken to the team as interim Chief Transformation Officer to support enterprise-wide implementation of these objectives. Finally, even as we navigate this difficult operating environment, we continue to pursue our goal of strengthening our balance sheet for the longer term.”
Reduction-in-Force
The Company is implementing certain organizational changes and further cost-reduction measures intended to strengthen its financial profile and support its long-term objectives. On August 6, 2025, management approved a plan to reduce the Company’s current workforce in North America by approximately 44 employees, representing approximately 6% of the Company’s total global workforce (the “RIF”). This decision was based on cost-reduction initiatives intended to reduce cost of goods sold and operating expenses.
The Company estimates that it will incur one-time cash charges of approximately $0.8 million to $1.3 million in connection with the RIF, primarily consisting of severance payments, employee benefits and related costs, in all cases, provided to departing employees. The Company expects that the majority of these charges will be incurred in the third quarter of 2025, subject to applicable legal requirements, which may delay the time these charges will be incurred beyond the end of the third quarter of 2025. The calculation of the charges the Company estimates it will incur are subject to uncertainties and based on a number of assumptions, including applicable legal requirements; the actual charges incurred may differ from the estimate disclosed above.
In aggregate, over the next twelve months, the RIF is expected to result in approximately $5.0 million to $6.0 million in cash compensation expense savings, and an additional approximately $0.5 million to $1.0 million in non-cash savings related to previously granted, unvested stock-based compensation that would have vested over the next twelve months.
Appointment of interim Chief Transformation Officer
On August 6, 2025, as disclosed in a Current Report on Form 8-K filed by the Company, John Boken was appointed as the Company’s interim Chief Transformation Officer. Mr. Boken has been a Partner and Managing Director in the Turnaround and Restructuring Services practice at AlixPartners, LLP, an international consultancy firm, for over 6 years and has over 35 years of interim management, corporate turnaround and restructuring experience.
Second Quarter 2025
Net revenues decreased 19.6% to $75.0 million in the second quarter of 2025, compared to $93.2 million in the year-ago period. The decrease in net revenues was primarily driven by an 18.9% decrease in volume of products sold, and a 0.9% decrease in net revenue per pound. The decrease in volume of products sold was primarily driven by weak category demand and reduced points of distribution in the U.S. retail channel, and lower sales of burger products to Quick Service Restaurant (“QSR”) customers in the international foodservice channel. The decrease in net revenue per pound was primarily driven by higher trade discounts and changes in product sales mix, partially offset by favorable changes in foreign currency exchange rates and price increases of certain of our products.
U.S. retail channel net revenues decreased 26.7% to $32.9 million in the second quarter of 2025, compared to $44.9 million in the year-ago period. The decrease in net revenues was primarily driven by a 24.2% decrease in volume of products sold, and a 3.2% decrease in net revenue per pound. The decrease in volume of products sold was primarily driven by weak category demand and reduced points of distribution. The decrease in net revenue per pound was primarily driven by higher trade discounts, partially offset by changes in product sales mix and price increases of certain of our products. U.S. retail channel net revenues included $0.1 million from ingredient sales in the quarter, compared to $0.8 million from ingredient sales in the year-ago period.
U.S. foodservice channel net revenues increased 6.8% to $11.1 million in the second quarter of 2025, compared to $10.4 million in the year-ago period. The increase in net revenues was primarily driven by a 4.4% increase in net revenue per pound, and a 2.3% increase in volume of products sold. The increase in net revenue per pound was primarily driven by price increases of certain of our products and changes in product sales mix, partially offset by higher trade discounts. The increase in volume of products sold was primarily driven by higher sales of the Company’s ground beef and dinner sausage products.
International retail channel net revenues decreased 9.8% to $15.9 million in the second quarter of 2025, compared to $17.6 million in the year-ago period. The decrease in net revenues was primarily driven by a 13.1% decrease in volume of products sold, partially offset by a 3.9% increase in net revenue per pound. The decrease in volume of products sold was primarily driven by lower sales of the Company’s burger, dinner sausage and ground beef products in Canada and reduced burger sales in the EU. The increase in net revenue per pound was primarily driven by favorable changes in foreign currency exchange rates, changes in product sales mix and price increases of certain of our products, partially offset by higher trade discounts.
International foodservice channel net revenues decreased 25.8% to $15.1 million in the second quarter of 2025, compared to $20.4 million in the year-ago period. The decrease in net revenues was primarily driven by a 21.6% decrease in volume of products sold, and a 5.3% decrease in net revenue per pound. The decrease in volume of products sold was primarily due to lower sales of burger products to certain QSR customers. The decrease in net revenue per pound was primarily driven by changes in product sales mix, partially offset by lower trade discounts, favorable changes in foreign currency exchange rates and price increases of certain of our products.
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