Beyond Meat Faces Challenges: Corporate Restructuring and Staff Reductions

Beyond Meat has recently appointed John Boken, a corporate restructuring expert from AlixPartners, as its interim Chief Transformation Officer. This move comes alongside a decision to lay off 44 employees in North America, amounting to 6% of its global workforce, as the company strives to manage operating expenses amidst troubling sales performance.

Q2 2025 Sales Decline

The plant-based protein company reported a staggering 19.6% year-over-year decrease in net sales, totaling $75 million in the second quarter of 2025. The decline has been attributed to “ongoing softness” in the plant-based meat market, particularly within the US retail channel.

CEO Ethan Brown stated, “We are responding by accelerating our transformation activities, focusing on reducing our operating expenses to align with anticipated revenues, prioritizing the distribution of our core products, and investing in margin expansion initiatives.”

Transformation Goals

Brown underscored the significance of Boken’s role in leading the company through two primary objectives: refining the operational framework to adapt to current revenue realities without causing disruptions, and striving for EBITDA positivity by the latter half of next year.

Part of this transformation includes potentially exiting certain product lines and reconfiguring others. Brown added, “We are highly focused on reducing our cash burn rate, and bringing in John highlights our urgency and commitment to swiftly cut costs.”

Q2 2025 Financial Snapshot

• Net Revenue: -19.6% YoY to $75 million, volumes down 18.9%
• Net Loss: $33.2 million
• Gross Margins: 11.5%
• US Retail Revenue: -26.7% YoY to $32.9 million, volumes down 24.2%
• US Foodservice Revenue: +6.8% YoY to $11.1 million, volumes up 2.3%
• International Retail Revenue: -9.8% YoY to $15.9 million, volumes down 13.1%
• International Foodservice Revenue: -25.8% YoY to $15.1 million, volumes down 21.6%
• Full Year 2025 Outlook: Not provided due to an “elevated level of uncertainty.”
• Balance Sheet: As of June 28, 2025, cash and equivalents stood at $117.3 million, with total debt at $1.2 billion.

Debt Concerns

With debts reaching $1.2 billion, primarily from a convertible notes offering in March 2021 set to mature in 2027, the company is actively seeking ways to strengthen its balance sheet. CFO Lubi Kutua announced that they are exploring potential transactions to manage existing debts.

The firm has secured a financing facility that offers up to $100 million in new senior secured debt from Unprocessed Foods, an affiliate of the Ahimsa Foundation, which supports plant-based diets.

Market Position and Consumer Behavior

In the US retail sector—its largest yet lowest-performing segment—sales fell by 26.7% to $32.9 million in Q2. Factors contributing to this decline include higher prices of plant-based products compared to traditional meat, exacerbated by a climate of “tepid consumer spending.” Brown noted that the “negative narrative surrounding our category” has also impacted sales.

Despite these difficulties, he expressed optimism: “We believe the factors encumbering our success now are transient. We recognize our higher prices in current economic conditions but are confident our cost structure will improve at scale.”

Future Directions

Brown mentioned that the company will expand its brand strategy moving forward. “We intend to increasingly use ‘Beyond’ as our primary brand,” he stated, emphasizing a shift from merely replicating animal proteins to diversifying their protein offerings, thereby broadening their appeal to consumers.

Ultimately, he concluded, “Right now, our focus must remain on stabilizing the business, aligning operating expenses, and improving margins.”