Plant-based meat company Beyond Meat recently reported financial results for its first quarter ended March 29, 2025. The company also announced a new $100 million senior secured financing deal.

For the first quarter, Beyond Meat net revenues were $68.7 million, a decrease of 9.1% year-over-year. Gross profit was a loss of $1.1 million, or gross margin of -1.5%, compared to gross profit of $3.7 million, or gross margin of 4.9%, in the year-ago period. Gross profit and gross margin included $4.3 million in non-cash charges arising from specific strategic decisions to increase inventory provision for certain inventory items, and $0.9 million in expenses related to the suspension of the company’s operational activities in China.

Loss from operations was $56.2 million, or operating margin of -81.8%, compared to loss from operations of $53.5 million, or operating margin of -70.7%, in the year-ago period. Loss from operations included the following charges recorded in operating expenses: $4.6 million in incremental legal fees associated with arbitration proceedings related to a previously disclosed contractual dispute with a former co-manufacturer; $1.3 million in noncash charges arising from specific strategic decisions to increase inventory provision for donation of certain inventory items; and $1.2 million in expenses related to the suspension of operational activities in China.

Net loss was $52.9 million, or $0.69 per common share, compared to net loss of $54.4 million, or $0.84 per common share, in the year-ago period. Net loss in aggregate included $12.3 million in expenses related to legal expenses, incremental inventory provision tied to specific strategic decisions, and expenses related to the suspension of operating activities in China.

Adjusted EBITDA was a loss of $42.3 million, or -61.6% of net revenues, compared to an Adjusted EBITDA loss of $32.9 million, or -43.5% of net revenues, in the year-ago period.

Beyond Meat President and CEO Ethan Brown said, “As the first quarter of 2025 progressed to a close, we saw a slowdown in consumption as the uncertain macroeconomic environment likely exacerbated category challenges. Nevertheless, we drove year-over-year reductions in operating expenses, notwithstanding the impact of certain transitory items, to partially offset disappointing net revenues and gross profit.”

Brown said, “In response to this interruption in our recovery, we are doubling down on cost-savings initiatives in support of our goal of achieving run-rate EBITDA-positive operations by year-end 2026. Further, we are pleased to announce that we have secured a $100 million new senior secured financing, as part of our ongoing efforts to address our balance sheet.”

Senior secured financing

Beyond Meat recently closed on a financing facility providing up to $100 million in new senior secured debt from Unprocessed Foods, an affiliate of the Ahimsa Foundation, a nonprofit organization focused on advocating for plant-based diets.

The company is continuing to evaluate potential transactions to address its existing convertible notes prior to maturity in 2027.

First quarter 2025

Net revenues decreased 9.1% to $68.7 million in the first quarter of 2025, compared to $75.6 million in the year-ago period. The decrease in net revenues was primarily driven by an 11.2% decrease in volume of products sold, partially offset by a 2.4% increase in net revenue per pound. The decrease in volume of products sold was primarily driven by weak category demand in the US retail and foodservice channels, which Beyond Meat management believes was exacerbated by economic uncertainty and other macroeconomic trends during the quarter. The increase in net revenue per pound was primarily driven by lower trade discounts and price increases of certain Beyond Meat products, partially offset by changes in product sales mix and unfavorable changes in foreign currency exchange rates.

US retail channel net revenues decreased 15.4% to $31.4 million in the first quarter of 2025, compared to $37.1 million in the year-ago period. The decrease in net revenues was primarily driven by a 23.2% decrease in volume of products sold, partially offset by a 10.0% increase in net revenue per pound. The decrease in volume of products sold was primarily driven by weak category demand. The increase in net revenue per pound was primarily driven by lower trade discounts and price increases of certain Beyond Meat products, partially offset by changes in product sales mix. US retail channel net revenues included no ingredient sales in the quarter, compared to $1.6 million from ingredient sales in the year-ago period.

US foodservice channel net revenues decreased 23.5% to $9.4 million in the first quarter of 2025, compared to $12.3 million in the year-ago period. The decrease in net revenues was primarily driven by a 22.0% decrease in volume of products sold, and a 2.0% decrease in net revenue per pound. The decrease in volume of products sold was primarily driven by weak category demand and lower burger sales to a quick-service restaurant customer. The decrease in net revenue per pound was primarily driven by higher trade discounts and changes in product sales mix, partially offset by price increases of certain Beyond Meat products.

International retail channel net revenues increased 0.8% to $12.7 million in the first quarter of 2025, compared to $12.6 million in the year-ago period. The increase in net revenues was primarily driven by a 10.3% increase in net revenue per pound, partially offset by an 8.6% decrease in volume of products sold. The increase in net revenue per pound was primarily driven by changes in product sales mix and lower trade discounts, partially offset by unfavorable changes in foreign currency exchange rates and price decreases of certain Beyond Meat products. The decrease in volume of products sold was primarily due to lower sales of the company’s ground beef products.

International foodservice channel net revenues increased 12.1% to $15.3 million in the first quarter of 2025, compared to $13.6 million in the year-ago period. The increase in net revenues was primarily driven by a 13.5% increase in volume of products sold, partially offset by a 1.2% decrease in net revenue per pound. The increase in volume of products sold was primarily due to increased sales of chicken products to a QSR customer. The decrease in net revenue per pound was primarily driven by changes in product sales mix and unfavorable changes in foreign currency exchange rates, partially offset by lower trade discounts and price increases of certain Beyond Meat products.

2025 outlook

The company is experiencing an elevated level of uncertainty within its operating environment, which management believes could have unforeseen impacts on the company’s actual realized results. In light of this uncertainty, the company is withdrawing its previous outlook for the full year 2025 and limiting its revised outlook to the following: In the second quarter of 2025, net revenues are expected to be in the range of $80 million to $85 million.

Source: Beyond Meat