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Beyond Meat Stock Falls 12% on Wider Q3 Loss & Weak Q4 Outlook
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Key Takeaways
Beyond Meat Q3 revenues and profit fell y/y.
The top line beat estimates but dropped 13.3% y/y amid lower volumes and weaker pricing.
Company eyes cost cuts and margin gains after debt moves to strengthen its balance sheet.
Beyond Meat, Inc. (BYND - Free Report) posted third-quarter 2025 results, with the top and bottom lines declining year over year. The top line surpassed the consensus mark and the bottom line missed the same. Also, BYND shares have fallen 12.2% since the company’s earnings released on Nov. 10, as investors reacted negatively to ongoing category headwinds and management’s guidance for another revenue decline in the fourth quarter, which weighed heavily on market sentiment and triggered a sharp sell-off.
Despite these challenges, the company emphasized progress on its transformation initiatives, noting that it had significantly reduced overall leverage through the exchange of its 2027 convertible notes, extended debt maturities and strengthened its balance sheet with added liquidity. It also outlined plans to implement sizable cost reductions, invest in gross margin expansion and pursue targeted growth opportunities, expressing confidence in its long-term recovery trajectory.
Beyond Meat, Inc. Price, Consensus and EPS Surprise
The company posted an adjusted loss of 47 cents per share, wider than the Zacks Consensus Estimate for an adjusted loss of 41 cents. The bottom line also declined from the adjusted loss of 41 cents incurred in the year-ago quarter.
Net sales of $70.2 million beat the consensus estimate of $69 million. The top line declined 13.3% year over year. The decrease was mainly attributable to a 10.3% reduction in product volume and a 3.5% decline in net revenues per pound.
Lower volumes reflected softer category demand, reduced distribution in the U.S. retail channel and weaker sales of burger products to international quick-service restaurant customers. The decrease in net revenues per pound was due to higher trade discounts, shifts in product mix and price reductions on certain items, partially offset by favorable foreign currency movements.
BYND’s Margin & Cost Details
The gross profit was $7.2 million, down from $14.3 million in the year-ago quarter. The gross margin contracted 740 basis points (bps) from the year-ago quarter to 10.3%. The decline reflected higher costs and lower revenues per pound. The latest quarter’s results also included $1.7 million in expenses tied to the suspension and substantial cessation of the company’s operations in China.
The gross margin was further pressured by increased cost of goods sold per pound, driven mainly by higher material costs and elevated inventory provisions, partially offset by lower manufacturing expenses, including depreciation, and reduced logistics costs.
SG&A expenses were $37.2 million, down 4.7% from $39.1 million in the year-ago quarter. As a percentage of net sales, this metric increased 480 bps year over year to 53% in the quarter under review. Research and development expenses declined 19.8% year over year to $4.9 million.
BYND’s Q3 Revenue Insights by Channel
Beyond Meat’s U.S. retail channel net revenues fell 18.4% to $28.5 million in the third quarter, from $35 million in the prior-year quarter. The decline reflected a 12.6% drop in sales volume and a 6.6% decrease in net revenues per pound. Lower sales volumes were largely attributed to soft category demand and fewer distribution points, while reduced revenues per pound stemmed from deeper trade discounts and price cuts on select products, partially offset by a favorable product mix.
In the U.S. foodservice channel, net revenues declined 27.3% to $10.5 million from $14.5 million a year earlier due to a 27.1% decrease in product volume and a slight 0.3% drop in net revenues per pound. The volume reduction was mainly linked to sluggish category demand and the absence of prior-year sales of chicken products to a quick-service restaurant customer. The lower net revenue per pound was led by increased promotional discounts and pricing adjustments, partially offset by product mix improvements.
International retail channel net revenues slipped 4.6% to $15.8 million from $16.6 million in the same quarter last year. The decline was mainly due to a 12.5% fall in product volume, partially offset by a 9.1% rise in net revenues per pound. Lower volume reflected reduced sales of burger, dinner sausage and chicken items, while the higher net revenues per pound benefited from favorable foreign exchange movements, selective price increases and a positive product mix, partly offset by higher trade discounts.
Conversely, international foodservice channel net revenues rose 2.4% to $15.3 million from $15 million in the prior-year period. The increase was led by a 4.4% rise in sales volume, offset in part by a 2% decline in net revenues per pound. Volume gains came from higher sales of chicken products to a quick-service restaurant partner, while lower revenues per pound reflected changes in the product mix, partly mitigated by favorable currency shifts, reduced discounts and modest price increases.
BYND’s Financial Snapshot: Cash & Debt Overview
Beyond Meat ended the third quarter with $131.1 million in cash and cash equivalents, and total outstanding debt of $1.2 billion. Net cash used in operating activities for the first nine months of 2025 was $98.1 million compared with $69.9 million a year earlier. Capital expenditure totaled $9.3 million versus $4.5 million in the same period last year.
BYND’s Q4 Outlook
Beyond Meat expects fourth-quarter 2025 net revenues between $60 million and $65 million, whereas it reported $76.7 million in the year-ago period. This outlook indicates continued weak demand in the plant-based meat category and expected distribution losses from certain quick-service restaurant customers.
BYND Stock Past 3-Month Performance
Image Source: Zacks Investment Research
Shares of this Zacks Rank #3 (Hold) company have plummeted 56.7% in the past three months compared with the industry’s 29.2% decline.
Better-Ranked Stocks to Consider
We have highlighted three better-ranked stocks, namely Lamb Weston Holdings, Inc. (LW - Free Report) , United Natural Foods, Inc. (UNFI - Free Report) and Chefs' Warehouse Holdings, LLC (CHEF - Free Report) .
Lamb Weston is a leading global manufacturer, marketer and distributor of value-added frozen potato products, particularly French fries, and also provides a range of appetizers. It currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
LW delivered a trailing four-quarter earnings surprise of 16%, on average. The consensus estimate for Lamb Weston’s current fiscal-year sales and earnings indicates growth of 1.3% and a decline of 6.3%, respectively, from the year-ago period’s reported figures.
United Natural Foods is the leading distributor of natural, organic and specialty food and non-food products. It flaunts a Zacks Rank of 1 at present.
The Zacks Consensus Estimate for United Natural Foods’ current fiscal-year earnings and revenues implies growth of 167.6% and 2.5%, respectively, from the year-ago actuals. UNFI delivered a trailing four-quarter average earnings surprise of 416.2%.
Chefs' Warehouse is a distributor of specialty food products. It currently sports a Zacks Rank of 1.
The Zacks Consensus Estimate for Chefs' Warehouse’s current financial-year earnings and revenues implies growth of 29.3% and 8.1%, respectively, from the year-ago actuals. CHEF delivered a trailing four-quarter average earnings surprise of 14.7%.
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Beyond Meat Stock Falls 12% on Wider Q3 Loss & Weak Q4 Outlook
Key Takeaways
Beyond Meat, Inc. (BYND - Free Report) posted third-quarter 2025 results, with the top and bottom lines declining year over year. The top line surpassed the consensus mark and the bottom line missed the same. Also, BYND shares have fallen 12.2% since the company’s earnings released on Nov. 10, as investors reacted negatively to ongoing category headwinds and management’s guidance for another revenue decline in the fourth quarter, which weighed heavily on market sentiment and triggered a sharp sell-off.
Despite these challenges, the company emphasized progress on its transformation initiatives, noting that it had significantly reduced overall leverage through the exchange of its 2027 convertible notes, extended debt maturities and strengthened its balance sheet with added liquidity. It also outlined plans to implement sizable cost reductions, invest in gross margin expansion and pursue targeted growth opportunities, expressing confidence in its long-term recovery trajectory.
Beyond Meat, Inc. Price, Consensus and EPS Surprise
Beyond Meat, Inc. price-consensus-eps-surprise-chart | Beyond Meat, Inc. Quote
More on Beyond Meat’s Q3 Results
The company posted an adjusted loss of 47 cents per share, wider than the Zacks Consensus Estimate for an adjusted loss of 41 cents. The bottom line also declined from the adjusted loss of 41 cents incurred in the year-ago quarter.
Net sales of $70.2 million beat the consensus estimate of $69 million. The top line declined 13.3% year over year. The decrease was mainly attributable to a 10.3% reduction in product volume and a 3.5% decline in net revenues per pound.
Lower volumes reflected softer category demand, reduced distribution in the U.S. retail channel and weaker sales of burger products to international quick-service restaurant customers. The decrease in net revenues per pound was due to higher trade discounts, shifts in product mix and price reductions on certain items, partially offset by favorable foreign currency movements.
BYND’s Margin & Cost Details
The gross profit was $7.2 million, down from $14.3 million in the year-ago quarter. The gross margin contracted 740 basis points (bps) from the year-ago quarter to 10.3%. The decline reflected higher costs and lower revenues per pound. The latest quarter’s results also included $1.7 million in expenses tied to the suspension and substantial cessation of the company’s operations in China.
The gross margin was further pressured by increased cost of goods sold per pound, driven mainly by higher material costs and elevated inventory provisions, partially offset by lower manufacturing expenses, including depreciation, and reduced logistics costs.
SG&A expenses were $37.2 million, down 4.7% from $39.1 million in the year-ago quarter. As a percentage of net sales, this metric increased 480 bps year over year to 53% in the quarter under review. Research and development expenses declined 19.8% year over year to $4.9 million.
BYND’s Q3 Revenue Insights by Channel
Beyond Meat’s U.S. retail channel net revenues fell 18.4% to $28.5 million in the third quarter, from $35 million in the prior-year quarter. The decline reflected a 12.6% drop in sales volume and a 6.6% decrease in net revenues per pound. Lower sales volumes were largely attributed to soft category demand and fewer distribution points, while reduced revenues per pound stemmed from deeper trade discounts and price cuts on select products, partially offset by a favorable product mix.
In the U.S. foodservice channel, net revenues declined 27.3% to $10.5 million from $14.5 million a year earlier due to a 27.1% decrease in product volume and a slight 0.3% drop in net revenues per pound. The volume reduction was mainly linked to sluggish category demand and the absence of prior-year sales of chicken products to a quick-service restaurant customer. The lower net revenue per pound was led by increased promotional discounts and pricing adjustments, partially offset by product mix improvements.
International retail channel net revenues slipped 4.6% to $15.8 million from $16.6 million in the same quarter last year. The decline was mainly due to a 12.5% fall in product volume, partially offset by a 9.1% rise in net revenues per pound. Lower volume reflected reduced sales of burger, dinner sausage and chicken items, while the higher net revenues per pound benefited from favorable foreign exchange movements, selective price increases and a positive product mix, partly offset by higher trade discounts.
Conversely, international foodservice channel net revenues rose 2.4% to $15.3 million from $15 million in the prior-year period. The increase was led by a 4.4% rise in sales volume, offset in part by a 2% decline in net revenues per pound. Volume gains came from higher sales of chicken products to a quick-service restaurant partner, while lower revenues per pound reflected changes in the product mix, partly mitigated by favorable currency shifts, reduced discounts and modest price increases.
BYND’s Financial Snapshot: Cash & Debt Overview
Beyond Meat ended the third quarter with $131.1 million in cash and cash equivalents, and total outstanding debt of $1.2 billion. Net cash used in operating activities for the first nine months of 2025 was $98.1 million compared with $69.9 million a year earlier. Capital expenditure totaled $9.3 million versus $4.5 million in the same period last year.
BYND’s Q4 Outlook
Beyond Meat expects fourth-quarter 2025 net revenues between $60 million and $65 million, whereas it reported $76.7 million in the year-ago period. This outlook indicates continued weak demand in the plant-based meat category and expected distribution losses from certain quick-service restaurant customers.
BYND Stock Past 3-Month Performance
Image Source: Zacks Investment Research
Shares of this Zacks Rank #3 (Hold) company have plummeted 56.7% in the past three months compared with the industry’s 29.2% decline.
Better-Ranked Stocks to Consider
We have highlighted three better-ranked stocks, namely Lamb Weston Holdings, Inc. (LW - Free Report) , United Natural Foods, Inc. (UNFI - Free Report) and Chefs' Warehouse Holdings, LLC (CHEF - Free Report) .
Lamb Weston is a leading global manufacturer, marketer and distributor of value-added frozen potato products, particularly French fries, and also provides a range of appetizers. It currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
LW delivered a trailing four-quarter earnings surprise of 16%, on average. The consensus estimate for Lamb Weston’s current fiscal-year sales and earnings indicates growth of 1.3% and a decline of 6.3%, respectively, from the year-ago period’s reported figures.
United Natural Foods is the leading distributor of natural, organic and specialty food and non-food products. It flaunts a Zacks Rank of 1 at present.
The Zacks Consensus Estimate for United Natural Foods’ current fiscal-year earnings and revenues implies growth of 167.6% and 2.5%, respectively, from the year-ago actuals. UNFI delivered a trailing four-quarter average earnings surprise of 416.2%.
Chefs' Warehouse is a distributor of specialty food products. It currently sports a Zacks Rank of 1.
The Zacks Consensus Estimate for Chefs' Warehouse’s current financial-year earnings and revenues implies growth of 29.3% and 8.1%, respectively, from the year-ago actuals. CHEF delivered a trailing four-quarter average earnings surprise of 14.7%.