TLDR
Beyond Meat shares fall after Q2 revenue declines 8.2% to only $68.8 million.
Adjusted EBITDA loss widens to $27.7 million as quarterly margins weaken further.
U.S. foodservice revenue plunges 27.6% amid weak demand and fewer locations.
International retail sales rise 16.5% and provide the quarter’s main bright spot.
Beyond Meat guides Q3 revenue to $60 million–$65 million after a weak quarter.
Beyond Meat (BYND) stock fell after the company reported weaker revenue and a wider adjusted EBITDA loss. The stock dropped 3.72% to $0.6101, then slipped 1.66% after hours to $0.6000. The results showed persistent demand weakness across key United States channels throughout the quarter.
Beyond Meat, Inc., BYND
Beyond Meat Q2 Revenue Falls as Product Volume Weakens
Beyond Meat reported second-quarter revenue of $68.8 million, down 8.2% from $75.0 million one year earlier. Product volume fell 9.5%, while net revenue per pound increased 1.3%. Lower demand and fewer distribution points reduced domestic sales and weakened overall quarterly revenue.
United States retail revenue declined 9.9% to $29.6 million during the quarter. Meanwhile, United States foodservice revenue dropped 27.6% to $8.0 million. Weak category demand, higher discounts, and reduced product availability hurt both channels across major customer segments.
International retail revenue delivered the strongest performance and rose 16.5% to $18.5 million. Higher European and United Kingdom sales supported demand for burger, chicken, and ground beef products across several markets. However, international foodservice revenue fell 16.0% after quick-service restaurant customers reduced orders.
Beyond Meat Margins Narrow as Operating Loss Remains High
Gross profit reached $5.9 million, compared with $7.9 million during the prior-year quarter. Consequently, gross margin narrowed to 8.5% from 10.6% one year earlier. China exit expenses added $1.6 million to production costs and reduced reported profitability during the period.
Operating expenses fell to $36.7 million from $45.4 million during the comparable period. An $11.0 million arbitration settlement credit lowered reported operating costs. Even so, Beyond Meat recorded a $30.8 million operating loss despite the settlement benefit.
The operating loss improved from $37.5 million one year earlier because expenses declined and the settlement credit helped. However, adjusted EBITDA worsened to a $27.7 million loss from a $24.7 million loss. The adjusted EBITDA margin also weakened to negative 40.2% from negative 33.0%.
Debt Gain Lifts Net Income as Q3 Outlook Remains Soft
Beyond Meat (BYND) Stock Rockets 14% on Major New York Distribution Partnershipreported net income of $16.4 million, reversing a $31.8 million prior-year loss. A $57.7 million non-cash debt extinguishment gain drove the improvement. However, diluted earnings remained negative at $0.06 per share because of accounting adjustments and share dilution effects.
The company ended the quarter with $186.1 million in cash and restricted cash. Meanwhile, total debt carrying value stood at $323.8 million at quarter-end. Operating cash use improved to $23.2 million from $58.0 million over the same six-month period.
Management expects third-quarter revenue between $60 million and $65 million, below the second-quarter total. Beyond Meat continues restructuring operations, lowering its cost base, and expanding beyond traditional plant-based meat products. The company recently launched Beyond Steak Filet and Beyond Immerse under its broader plant protein strategy.
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