Beyond Meat Stock Falls 12% on Wider Q3 Loss & Weak Q4 Outlook

Core Insights - Beyond Meat, Inc. (BYND) reported a decline in both revenue and earnings for the third quarter of 2025, with net sales of $70.2 million, a 13.3% decrease year over year, while adjusted loss per share was 47 cents, wider than the consensus estimate of 41 cents [1][3][9] Financial Performance - The company's net sales of $70.2 million exceeded the consensus estimate of $69 million but represented a 13.3% decline year over year, primarily due to a 10.3% reduction in product volume and a 3.5% decrease in net revenues per pound [3][9] - Gross profit fell to $7.2 million from $14.3 million in the prior year, with gross margin contracting 740 basis points to 10.3% due to higher costs and lower revenues per pound [5][9] - SG&A expenses decreased by 4.7% to $37.2 million, but as a percentage of net sales, it increased to 53% [7] Revenue Breakdown by Channel - U.S. retail channel net revenues fell 18.4% to $28.5 million, driven by a 12.6% drop in sales volume and a 6.6% decrease in net revenues per pound [8] - U.S. foodservice channel revenues declined 27.3% to $10.5 million, primarily due to a 27.1% decrease in product volume [10] - International retail channel revenues slipped 4.6% to $15.8 million, with a 12.5% fall in product volume partially offset by a 9.1% rise in net revenues per pound [11] - International foodservice channel revenues rose 2.4% to $15.3 million, supported by a 4.4% increase in sales volume [12] Strategic Initiatives - The company is focusing on transformation initiatives, including significant cost reductions, gross margin expansion, and targeted growth opportunities, while expressing confidence in its long-term recovery [2] - Beyond Meat expects fourth-quarter 2025 net revenues between $60 million and $65 million, indicating continued weak demand in the plant-based meat category [14] Cash and Debt Position - As of the end of the third quarter, Beyond Meat had $131.1 million in cash and cash equivalents, with total outstanding debt of $1.2 billion [13]