Summary of Beyond Meat’s results

• Beyond Meat continues to see decline in net revenue and gross profit
• This is largely driven by volumes being down almost across the board
• CEO Ethan Brown suggests that the company is facing the headwinds of a diminishing plant-based sector
• The company aims to change its image, increasingly using the moniker ‘Beyond’ rather than Beyond Meat

Beyond Meat’s decline has continued in Q2, in large part because of consumer interest in substantially falling away.

The company faces pressure on all fronts as consumer appetite for alternative meats begins to waver.

With significant decreases year-on-year, in both net revenues and gross profit, the company has not recovered from similarly poor results in Q1.

The decline in net revenue was driven by a significant decrease in volume of products sold, as well as fewer points at which to sell them.

Despite a drastic decrease in volumes in US retail, Beyond Meat actually saw a slight increase in foodservice, bucking the international trend.

CEO Ethan Brown was “disappointed” with the results, commenting that they “primarily reflect ongoing softness in the plant-based meat category“.

Decline of alternative meats

Brown chalks up the company’s tribulations to the myriad headwinds affecting the larger alternative meats category.

For example, Beyond Meat’s pricing, which remains above that of conventional meat, may be leading to lower volumes, especially in a period of economic uncertainty for consumers.

Also read → Interview with CEO Ethan Brown

Furthermore, the association of plant-based meat with ultra-processed foods could potentially be contributing to Beyond Meat’s woes.

Added to this, conventional meat is once again “having a moment”, with the category seeing a resurgence after years where meat reduction was in fashion.

However, Brown suggests that while Beyond Meat’s products are “on the wrong side of a cultural moment”, this will not last.

International foodservice sees challenges

While US foodservice had declined in the first quarter, international foodservice was on the up. In Q2, however, it has seen decreases in volumes.

In Q1, international foodservice net revenues saw growth of 12.1%. In Q2 it was down by 25.8%. What happened?

Animal protein prices are falling in some markets, suggests Brown, thus making the pricing contrast starker. Furthermore, macroeconomic conditions are hitting restaurants serving the company’s products.

Resize and repurpose

In response to the challenges posed by this quarter’s declines, Beyond Meat is focusing on reducing its operating expenses further, as well as reconfiguring the brand identity.

The company plans to more frequently call itself Beyond, rather than Beyond Meat, going forward. The aim behind this is to move “beyond animal protein replicates”.

Its new Beyond Ground product, which does not seek to imitate existing meat products, is due for release soon. Its main aim is to deliver high levels of protein, in line with the consumer trend towards more nutritious products.

CEO Brown hopes that in the future, the company will be able to achieve cost parity with animal protein.

For now, however, he aims to fit the business’s operating base within current demand levels. This involves cost reduction.

For example, the company has announced several redundancies, shrinking its global workforce by 6%.

The company plans to invest more in and expand distribution of core product lines, and exit others. It is also working with suppliers to reduce raw material costs.

The company predicts further net revenue decline in Q3 of 2025.

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