Beyond Meat Gross Margin Reaches 19.3% as Revenue Falls

The Tip Desk · November 11, 2026 · 3 min read

Third-quarter net revenues were $64.5 million, down 8.1% from a year earlier, as the plant-protein company booked a $57.1 million long-lived-asset impairment.

Beyond Meat, Inc. (BYND) reported third-quarter net revenues of $64.5 million, down 8.1% from $70.2 million a year earlier, as volume of products sold fell 10.9% and net revenue per pound rose 3.2%.

The plant-protein company said the volume decline was driven primarily by lower burger sales to quick-service-restaurant customers in international foodservice, and by reduced points of distribution and weak category demand in U.S. foodservice and retail. Higher price realization, lower trade discounts and mix changes lifted net revenue per pound, partly offset by unfavorable foreign-exchange rates.

Gross profit was $12.4 million, or a 19.3% gross margin, compared with $5.9 million and 8.5% in the second quarter. The company said the year-ago period included $1.7 million of expenses related to the cessation of operations in China. Gross margin expanded on a 10.1% decrease in cost of goods sold per pound, which the company attributed to lower manufacturing expenses including depreciation, a lower inventory provision and lower logistics costs, plus the 3.2% increase in net revenue per pound.

U.S. retail net revenues decreased 13.2% to $24.8 million, with volume down 20.8% and net revenue per pound up 9.5%. The company cited lower burger and dinner-sausage sales to club channels, reduced breakfast-sausage sales, fewer distribution points and weak category demand. U.S. foodservice net revenues decreased 9.7% to $9.5 million.

International retail net revenues increased 13.3% to $17.9 million, with volume up 17.4% and net revenue per pound down 3.4%. President and CEO Ethan Brown said the channel registered a third consecutive quarter of growth, led by Europe, on higher burger and ground-beef sales there and, to a lesser extent, burger sales in Canada. International foodservice net revenues decreased 19.4% to $12.4 million, on lower burger sales to certain QSR customers.

Loss from operations was $93.0 million, or an operating margin of (144.1)%, compared with a $30.8 million loss and a -44.8% operating margin in the second quarter. Operating expenses were $105.4 million and included a $57.1 million non-cash impairment of certain long-lived assets, versus $51.3 million of impairment in the year-ago period. The company said the impairment followed an ASC 360 test after management determined triggering events had occurred. Operating expenses also included $20.8 million of non-cash accelerated rent from a partial lease termination of a portion of the Campus Headquarters in El Segundo, split $10.2 million in research and development and $10.6 million in selling, general and administrative expenses.

Net loss was $82.8 million, or $(4.32) a share, compared with net income of $16.4 million in the second quarter, which had been driven by a $57.7 million non-cash gain on debt extinguishment. Total other income, net, was $10.1 million, including a $13.3 million non-cash gain from remeasurement of derivative liability, partly offset by a $2.5 million increase in interest expense. Adjusted EBITDA was a loss of $24.6 million, or (38.1)% of total net revenues, narrowing from a $27.7 million loss, or -40.2% of net revenues, in the second quarter.

Cash and cash equivalents including restricted cash were $169.3 million and total outstanding carrying value of debt, net of debt discount, was $313.9 million as of September 26, 2026. On September 23, the company exchanged $15.0 million of 2027 Notes for about 1.55 million shares, leaving $14.5 million of those notes outstanding. Brown said the company is pursuing stabilization of U.S. revenues while driving enterprise-wide cost reduction, including actions in the quarter to substantially reduce certain long-term lease obligations.

The company said it continues to experience an elevated level of uncertainty and volatility in its operating environment. Fourth-quarter 2026 total net revenues are expected to be approximately $54 million to $59 million.