Core Insights - Beyond Meat has delayed the release of its third-quarter results to November 11 to better quantify a significant impairment charge related to its long-lived assets [1][2] - The company disclosed that the impairment charge is expected to be material, and it requires additional time and resources to finalize its assessment [2] - Beyond Meat's shares fell 16% to close at $1.39, with a year-to-date decline of approximately 63% [3] Financial Performance - The projected revenue for the third quarter is about $70 million, down from $81 million a year earlier, aligning with the previous outlook of $68 million to $73 million [5] - The expected gross margin for the period is around 10-11%, a significant decrease from 17.7% in the same period last year [5] - The company has not reported a net profit since its IPO in 2019 and did not provide an earnings estimate in the recent SEC filing [5] Strategic Developments - Beyond Meat has previously announced an exit from the Chinese market, job cuts, and secured external financing [6] - A $100 million financing package was obtained from Unprocessed Foods, which includes an option for a minority stake in Beyond Meat [6] - John Boken, an advisor with corporate turnaround experience, was hired to assist the company in restructuring efforts [7] Market Challenges - Sales volumes have declined across all channels, particularly in US retail, contributing to a net loss of $82.2 million in the first half of fiscal 2025 [7] - The company's recoverability test indicated that the carrying amount of certain long-lived assets was not recoverable based on projected future cash flows [4]

Core Viewpoint - Beyond Meat is facing significant challenges, including an upcoming "material" impairment charge related to its long-lived assets, which may impact its financial performance and stock price [1][2][3]. Financial Performance - The company is projecting third-quarter sales revenue of approximately $70 million, which is a decrease from $81 million in the same quarter last year, despite a previous forecast range of $68-$73 million [4][5]. - Gross margins are expected to decline to about 10-11% for the third quarter, down from 17.7% in the same period last year, indicating ongoing financial struggles [5]. Stock Performance - Beyond Meat's shares have experienced significant volatility, dropping 23% to $2.185 at the end of US trading, following a debt-for-equity swap and a previous rally due to short-covering [3]. - The stock had previously fallen below $1.00, which poses a risk of delisting from Nasdaq, and is down approximately 42% year-to-date [4]. Strategic Moves - The company has engaged John Boken from AlixPartners as an external advisor to assist with corporate turnaround and restructuring efforts [6]. - Beyond Meat has not reported a net profit since its IPO in 2019 and has announced various cost-cutting measures, including job cuts and an exit from the Chinese market [6]. Financing - Earlier in the year, Beyond Meat secured a $100 million financing package from Unprocessed Foods, which includes an option for a minority stake in the company [7].