Beyond Meat (NASDAQ:BYND) reported a narrower third-quarter loss and its highest gross margin in five years, but revenue continued to fall as weaker U.S. demand and lower international food-service sales outweighed growth in international retail.
The plant-based food company reported revenue of $64.5 million for the quarter, down 8.1% from $70.2 million a year earlier and at the high end of its $60 million to $65 million guidance. For the fourth quarter, it forecast revenue of $54 million to $59 million.
Founder, President and CEO Ethan Brown said the company is working to reduce operating expenses to match its current revenue. “There is no silver bullet that we are looking for,” he said in response to an analyst’s question about costs.
Margins Improve as Sales Volumes Fall
Gross profit rose to $12.4 million from $5.2 million a year earlier, while gross margin increased to 19.3% from 7.4%. CFO and Treasurer Lubi Kutua said the improvement reflected factors including manufacturing efficiencies, lower logistics expenses and a decrease in inventory provisions. The prior-year quarter also included $1.7 million in expenses related to the cessation of operations in China.
Cost of goods sold fell 10.1% year over year on a per-pound basis, reaching $3.90 per pound. Brown said the company has consolidated production, brought some previously outsourced volume in-house at its Columbia, Missouri, facility and reduced warehouse expenses. He said lower sales volumes have muted some of the benefits by limiting the absorption of overhead costs.
Overall sales volume declined 10.9% in the quarter, partly offset by a 3.2% increase in net revenue per pound. Kutua attributed the volume decline in part to lower burger sales to certain international quick-service restaurant customers, U.S. distribution losses and softness in the U.S. plant-based meat category.
U.S. retail revenue fell 13.2% to $24.8 million, while U.S. food-service revenue declined 9.7% to $9.5 million. International retail revenue rose 13.3% to $17.9 million, its third consecutive quarter of growth, helped by higher burger and ground beef sales in Europe. International food-service revenue fell 19.4% to $12.4 million.
Restructuring Charges and Debt Exchanges
Beyond Meat posted a net loss of $82.8 million, or $4.32 per share, compared with a loss of $97 million, or $37.96 per share, a year earlier. Per-share figures were adjusted for the company’s 1-for-30 reverse stock split in August. Kutua noted that the prior-year calculation used the weighted average share count before a fourth-quarter 2025 exchange offer.
Operating expenses of $105.4 million included a $57.1 million non-cash impairment charge and a $20.8 million non-cash accelerated rent charge associated with a partial lease termination. Those expenses were partly offset by a $21.8 million credit from a reduced litigation-related accrual. Kutua said the expected financial benefits from downsizing the company’s headquarters footprint would not be immediate.
Adjusted EBITDA was a loss of $24.6 million, compared with a loss of $33.5 million a year earlier. Net cash used in operating activities fell to $37.3 million in the first nine months of 2026 from $101.2 million in the same period a year earlier.
Cash and cash equivalents, including restricted cash, totaled $169.3 million at September 26. The carrying value of outstanding debt, net of debt discount, was $313.9 million. In September, the company exchanged $15 million in principal of its 2027 notes for approximately 1.55 million shares, leaving $14.5 million of those notes outstanding. Kutua acknowledged the dilution but said the transaction supported cash preservation and debt reduction.
Broader Plant-Protein Push
Brown said Beyond Meat is seeking to stabilize its U.S. business while investing in Europe and Canada and expanding beyond plant-based meat into beverages, powders and bars. The company initially launches new products online before expanding selectively into retail, he said.
Among its newer offerings, Beyond Steak Filet is available at retailers including Wegmans, H-E-B, Meijer and Sprouts Farmers Market. Brown said sales of the Beyond Immerse protein beverage grew quarter over quarter, although he cautioned that volumes remain small.
In response to a question about a rise in research and development expense, Kutua said roughly half of the $20.8 million accelerated rent charge was allocated to that category. Brown agreed with the analyst’s characterization that the expense should return to roughly its prior quarterly run rate, subject to some variation.
About Beyond Meat (NASDAQ:BYND)
Beyond Meat, Inc develops, manufactures and markets plant-based meat products designed to replicate the taste, texture and nutritional characteristics of animal-based meat. Its product portfolio has included plant-based beef, chicken and sausage alternatives, such as burgers, ground meat, breakfast sausage and breaded chicken products.
The company sells its products through grocery and retail outlets, restaurants, foodservice distributors and other commercial channels. Beyond Meat has served customers in the United States and international markets, with products available in various countries across North America, Europe and Asia-Pacific through retail and foodservice partnerships.
Founded in 2009 by Ethan Brown, Beyond Meat is headquartered in El Segundo, California.
