Beyond Meat Reports 9.1% Revenue Decline and Net Loss in Q1 2025

Beyond Meat, Inc. reported a decline in financial performance for the first quarter of 2025, with net revenues falling to $68.7 million, a decrease of 9.1% from $75.6 million in the same period last year. The company experienced a net loss of $52.9 million, slightly improved from a loss of $54.4 million in the prior year. The decrease in revenue was attributed to weak demand in the plant-based meat category, changes in product sales mix, and distribution losses in certain channels, which were not offset by cost reductions. The gross profit for the quarter was a loss of $1.1 million, compared to a gross profit of $3.7 million in the previous year, resulting in a gross margin of -1.5%.

In terms of operational changes, Beyond Meat initiated a Global Operations Review in November 2023 to reduce operating expenses and focus on growth opportunities. This included workforce reductions, with approximately 65 employees laid off in late 2023 and an additional 44 employees in early 2025, representing about 6% of the total global workforce. The company also plans to suspend its operational activities in China by mid-2025, which will result in further workforce reductions and non-cash charges related to asset write-offs and accelerated depreciation.

The company’s product sales were impacted by a 23.2% decrease in volume sold in the U.S. retail channel, primarily due to weak category demand and price elasticity effects from pricing changes. Internationally, retail sales remained relatively stable, while foodservice sales increased by 12.1%. The company’s inventory levels decreased as part of its efforts to optimize working capital, but it still faced challenges with excess and obsolete inventory.

Looking ahead, Beyond Meat's management expressed concerns about ongoing macroeconomic challenges, including inflation, geopolitical uncertainty, and potential recessionary pressures, which could further impact demand for plant-based products. The company is focused on improving its cost structure and achieving sustainable profitability through strategic initiatives, including potential capital raises and operational adjustments. As of March 29, 2025, Beyond Meat had $102.1 million in cash and cash equivalents, with plans to utilize its ATM program and a new loan agreement to bolster its liquidity.