This beaten-down stock could struggle to recover next year.Beyond Meat (BYND 3.67%), a leading producer of plant-based meat products, went public at $25 per share in May 2019. A month later, it closed at a record high of $234.90. At its peak, Beyond Meat's market capitalization reached $14.1 billion, quivalent to 47 times its 2019 revenue.That sky-high valuation set it up for a steep decline as its growth slowed, its losses widened, and rising interest rates compressed its valuation. Today, Beyond Meat's st ...

The plant-based meat company is 99.5% off its all-time high.Beyond Meat (BYND 2.38%) stock enjoyed a steep surge earlier this year, fueled by retail investor enthusiasm and social media interest. But as we approach the end of 2025, it's down 68% year to date and down 99.5% from its all-time high. Rounded off, that would be 100%, of course, but the company is still drawing breath and hanging on.At this point, there are only seven Wall Street analysts covering Beyond Meat, and most of them expect the stock to ...

Core Viewpoint - Beyond Meat has significantly underperformed the S&P 500 since its IPO, losing over 99% of its value in the past five years, while the S&P 500 gained 84% during the same period [2][3]. Performance Overview - Beyond Meat's stock surged post-IPO in 2019 but has since faced a disastrous decline, with a 93% drop over the last three years and an 83% decline in the past year [2][3]. - The S&P 500 has outperformed Beyond Meat by 183 percentage points over five years, 158 percentage points over three years, and 94 percentage points in the last year [2][3]. Market Demand and Competition - Demand for plant-based meat alternatives in the U.S. has faltered post-pandemic, with retail sales of refrigerated plant-based burgers dropping 26% year-over-year [4]. - Beyond Meat's products lack differentiation in a crowded market, leading to diminished pricing power as consumers turn away from the category [5]. Financial Performance - In the third quarter, Beyond Meat reported a 13.3% revenue decline, a gross margin of 10.3%, and a net loss of $110.7 million on sales of $70.2 million [6]. - The company's guidance for the fourth quarter anticipates revenue between $60 million and $65 million, indicating ongoing struggles [6]. Stock Market Activity - Beyond Meat's stock has experienced volatility, including a plunge after a convertible debt exchange and a brief spike during a "meme stock" rally, followed by another decline [8]. - The current stock price is $0.86, with a market cap of $0 billion and a gross margin of 5.98% [7].

Core Insights - Beyond Meat reported a significant decline in net revenues for Q3 2025, with a decrease of 13.3% year-over-year to $70.2 million, primarily due to weak category demand and reduced distribution points [4][5][10] - The company is undergoing a transformation to improve its balance sheet, reduce leverage, and enhance liquidity while facing ongoing challenges in the plant-based meat market [3][19] Financial Performance - Net revenues decreased to $70.2 million from $81.0 million in the same quarter last year, driven by a 10.3% decrease in volume sold and a 3.5% decrease in revenue per pound [4][10] - Gross profit fell to $7.2 million with a gross margin of 10.3%, down from $14.3 million and 17.7% in the prior year [5][12] - Loss from operations increased to $112.3 million, compared to a loss of $30.9 million in the previous year, influenced by higher operating expenses and impairment charges [14][16] Revenue Breakdown - U.S. retail channel revenues decreased by 18.4% to $28.5 million, with a 12.6% drop in volume sold [5][10] - U.S. foodservice channel revenues fell by 27.3% to $10.5 million, primarily due to a 27.1% decrease in volume sold [7][10] - International retail channel revenues decreased by 4.6% to $15.8 million, while international foodservice channel revenues increased by 2.3% to $15.3 million [8][9] Operational Highlights - The company is focusing on cost reductions and gross margin expansion investments to achieve sustainable operations [3] - Adjusted EBITDA loss was $21.6 million, or -30.8% of net revenues, compared to a loss of $19.8 million, or -24.4% of net revenues, in the prior year [17] Balance Sheet and Cash Flow - As of September 27, 2025, the company had cash and cash equivalents of $131.1 million and total outstanding debt of $1.2 billion [18] - Net cash used in operating activities was $98.1 million for the nine months ended September 27, 2025, compared to $69.9 million in the previous year [18] Future Outlook - For Q4 2025, the company expects net revenues to be in the range of $60 million to $65 million, reflecting ongoing uncertainty in the operating environment [22]

Group 1 - Beyond Meat does not have a single buy rating from Wall Street analysts, indicating a bearish sentiment towards the stock with a mix of hold, underperform, and sell ratings [1][8] - The company is facing significant challenges due to a lack of competitive advantage in a crowded market, leading to declining sales and market share [4][9] - In the third quarter of 2025, Beyond Meat expects to report sales of $70 million with a gross margin of around 11%, a significant drop from $106.4 million in the same quarter of 2021 with a gross margin of 21.6% [5] Group 2 - The demand for plant-based meat has weakened, and competition has intensified, resulting in a collapse in sales for Beyond Meat [3][9] - The company's new product launches, such as a jerky product, have failed to reignite sales, and the current strategy is focused on cost-cutting measures [6] - In the second quarter, Beyond Meat's U.S. retail channel experienced a 24.2% volume decrease and a 3.2% decline in revenue per pound, highlighting the struggles the company faces in maintaining sales [9]

Core Insights - Beyond Meat has launched its latest versions of Beyond Burger and Beyond Beef at Erewhon locations, marking them as the first plant-based meat products certified by the Clean Label Project [1][2] - The new products contain 21g of protein per serving, only 2g of saturated fat from avocado oil, and are free from GMOs, cholesterol, and added antibiotics or hormones [1][11] Company Overview - Beyond Meat, Inc. is a leading plant-based meat company founded in 2009, focusing on creating products that mimic the taste and texture of animal-based meat while being healthier for people and the planet [3] - The company's mission emphasizes the positive impact of shifting from animal-based meat to plant-based protein on human health, climate change, natural resource constraints, and animal welfare [3] Partnership with Erewhon - Erewhon is a family-owned Certified B Corp and Certified Organic Retailer with a commitment to providing organic and ethically-sourced foods, supporting local growers, and promoting environmental sustainability [5] - The collaboration between Beyond Meat and Erewhon reflects shared values in delivering nutritious and sustainable food options to the community [1][2]

Core Insights - Beyond Meat reported Q2 2025 earnings with GAAP revenue of $75.0 million, falling short of analyst estimates of $81.8 million and down 19.6% year-over-year [1][2] - The company experienced a non-GAAP adjusted EPS loss of $0.40 per share, slightly worse than the expected loss of $0.38, but an improvement from a $0.53 loss in the prior year [1][2] - Management withdrew full-year guidance due to ongoing market volatility, providing only a narrow revenue outlook for the next quarter [1][9] Financial Performance - Revenue for Q2 2025 was $75.0 million, down from $93.2 million in Q2 2024, representing a 19.6% decline [2] - Gross margin decreased to 11.5% from 14.7% year-over-year, reflecting increased costs and declining sales volume [2][7] - Net loss for the quarter was $33.2 million, a slight improvement from a loss of $34.5 million in the same quarter last year [2] Market Dynamics - U.S. retail revenue fell by 26.7%, attributed to weak category demand and fewer distribution points, with volumes down 24.2% [5] - International retail revenue decreased by 9.8%, and international foodservice net revenues dropped by 25.8%, primarily due to reduced burger sales [6] - U.S. foodservice revenue increased by 6.8%, driven by higher sales of ground beef substitutes and dinner sausage products [6] Operational Challenges - The company faced deteriorating margins, with operating margin declining to negative 51.8% and adjusted EBITDA losses widening to $26.0 million [7] - Non-routine charges, including $1.7 million related to China operations and $4.5 million in legal costs, impacted financial results [7] - A workforce reduction of 44 jobs was implemented, expected to save $5.0–6.0 million in annual cash compensation but incurring upfront restructuring costs [7] Strategic Focus - Beyond Meat continues to invest in R&D for product innovation, including the Beyond IV platform and new product launches like Beyond Chicken Pieces [4][8] - The company aims to expand retail distribution and foodservice partnerships while maintaining competitive pricing amidst market pressures [4] - Brand-building campaigns focused on health benefits have not yet translated into increased demand, reflecting ongoing softness in the plant-based meat category [9] Future Outlook - Management provided a narrow revenue guidance range of $68–73 million for the next quarter, indicating expectations for continued declines [9] - The long-term goal remains to achieve EBITDA break-even by the end of 2026, but challenges include persistent demand weakness and falling volumes [9] - The company's liquidity is under pressure, with cash and equivalents at $117.3 million and net cash used in operations increasing to $59.4 million for the first half of FY2025 [10]

Financial Data and Key Metrics Changes - Net revenue for Q2 2025 was $75 million, down 19.6% from $93.2 million in the same period last year, primarily due to an 18.9% decrease in volume sold and a 0.9% decrease in net revenue per pound [25][26] - Gross margin decreased to 11.5% in Q2 2025 from 14.7% a year ago, impacted by reduced volume and unfavorable product mix [17][32] - Net loss for Q2 2025 was $33.2 million, or a loss of $0.43 per share, compared to a net loss of $34.5 million, or a loss of $0.53 per share, in the prior year [34] Business Line Data and Key Metrics Changes - U.S. Retail channel net revenues decreased 26.7% to $32.9 million, driven by a 24.2% decrease in volume sold and a 3.2% decrease in net revenue per pound [27] - U.S. Foodservice net revenues increased 6.8% to $11.1 million, primarily due to a 4.4% increase in net revenue per pound and a 2.3% increase in volume sold [30] - International Retail channel net revenues decreased 9.8% to $15.9 million, driven by a 13.1% decrease in volume sold, partially offset by a 3.9% increase in net revenue per pound [31] Market Data and Key Metrics Changes - The U.S. Retail channel faced significant challenges due to higher pricing compared to animal protein, negative narratives surrounding plant-based products, and reduced distribution points [12][13] - International Foodservice experienced a decline due to lapping significant promotional activity from the previous year and macroeconomic conditions affecting customer demand [16][60] Company Strategy and Development Direction - The company is focusing on a fundamental reset to stabilize the business and achieve EBITDA positive operations by 2026, including significant expense reductions and gross margin expansion [6][20] - Plans to deepen distribution of core products in U.S. Retail and reposition the brand to emphasize "Beyond" as the primary identifier, expanding beyond animal protein replication [9][10] - The appointment of an interim Chief Transformation Officer aims to enhance operational efficiency and reduce costs [6][79] Management's Comments on Operating Environment and Future Outlook - Management expressed disappointment with Q2 results, citing ongoing softness in the plant-based meat category and the need for a reset [5][21] - The company believes current challenges are transient and anticipates that consumer trends will eventually shift back in favor of plant-based products [22][63] - Future product offerings, such as Beyond Ground, are expected to capture consumer interest by emphasizing nutritional benefits rather than replicating animal protein [50][65] Other Important Information - Adjusted EBITDA loss was $26 million, or -34.7% of net revenues, compared to a loss of $23 million, or -24.7% of net revenues, in the prior year [35] - Cash and cash equivalents were $117.3 million, with total outstanding debt of approximately $1.2 billion as of June 28, 2025 [35] Q&A Session Summary Question: What measures will be taken to scale up the top line while reducing expenses? - Management highlighted the need to stabilize the U.S. Retail business and build brand blocks in key retailers to improve distribution and sales velocity [42][49] Question: What has changed in the international foodservice channel? - Management noted a softening in the international foodservice sector due to macroeconomic conditions and shifting animal protein prices, affecting customer menus [59][60] Question: How will the company address the issue of lapsed consumers? - Management emphasized the importance of stabilizing the business and addressing misinformation while focusing on the nutritional benefits of their products to attract flexitarian consumers [61][63]

Core Insights - Beyond Meat reported disappointing financial results for Q2 2025, primarily due to ongoing softness in the plant-based meat category, particularly in the U.S. retail channel and certain international foodservice markets [3][9][24] - The company is implementing cost-reduction measures, including a workforce reduction of approximately 44 employees, representing about 6% of its total global workforce, to strengthen its financial profile [4][6] - Net revenues decreased by 19.6% year-over-year to $75.0 million, driven by an 18.9% decrease in product volume sold and a 0.9% decrease in net revenue per pound [7][9][10] Financial Performance - Gross profit for Q2 2025 was $8.6 million, with a gross margin of 11.5%, down from $13.7 million and 14.7% in the previous year [7][19] - Loss from operations was $38.8 million, compared to a loss of $33.9 million in the same period last year, reflecting increased operational challenges [7][19] - Net loss was $33.2 million, or $0.43 per share, an improvement from a net loss of $34.5 million, or $0.53 per share, in the prior year [20][21] Revenue Breakdown - U.S. retail channel net revenues fell by 26.7% to $32.9 million, primarily due to a 24.2% decrease in volume sold [10][14] - U.S. foodservice channel net revenues increased by 6.8% to $11.1 million, driven by a 4.4% increase in net revenue per pound [11][14] - International retail channel net revenues decreased by 9.8% to $15.9 million, while international foodservice channel revenues dropped by 25.8% to $15.1 million [12][13] Cost Management Initiatives - The company anticipates one-time cash charges of approximately $0.8 million to $1.3 million related to the workforce reduction, with expected savings of $5.0 million to $6.0 million in cash compensation expenses over the next twelve months [5][6] - Operating expenses were $47.4 million, slightly down from $47.6 million in the previous year, with reductions in marketing and selling expenses [17][18] Future Outlook - Beyond Meat is not providing full-year guidance due to uncertainty in the operating environment but expects Q3 2025 net revenues to be in the range of $68 million to $73 million [24][23] - The company is focusing on strengthening its balance sheet and pursuing margin expansion initiatives despite the challenging market conditions [3][22]

Market Trends - Europe is becoming a promising market for plant-based meat producers [1] - The US market is experiencing declining interest in plant-based meat [1]