If the Q2 results of Beyond Meat (BYND) released on August 8th are any indication, the alt meat market is floundering and survives only by regular infusions of funding by venture capital firms. For the second quarter ending June 28th, BYND posted net revenue of $75.0 million, down 19.6 percent from the corresponding quarter in fiscal 2024. Net loss increased by three percent to $34.9 
million. Lower revenue was attributed to diminished volume in both domestic and international markets but specifically in the consumer segments. Gross margin declined from 14.7 percent in Q2 2024 to 11.5 percent for the most recent quarter. Trailing twelve-month operating margin was -44 percent and profit margin, -50 percent. It is noted that inventory valued at $110,000 represents 146 percent of Q2 sales.
Among other expenses, Beyond Meat persists in spending an inordinate amount on research and development with the most recent quarter corresponding to 7.7 percent of revenue. This would not appear out of place with a high tech or pharmaceutical company. The balance sheet shows assets of $691.7 million offset by long term debt of $1,257 million. Free cash flow has consistently declined and the company burnt through $125 million over the past 12 months.
Following downgrades from major analysts, BYND has fallen from a 52-week high of $7.60 to a low of $2.22 with a 50-day moving average of $2.88. As of August 29th, 42 percent of the float was short. Failure to either achieve or improve profitability is reflected in a decline in market cap from $441 million in mid-September 2024 to $218 million during the week of September 23rd 2025.
CEO Ethan Brown announced layoffs that are expected to save up to $7 million annually in the following fiscal year (if there is one for BYND) but will incur a $1.3 million charge. It is not possible to restore profitability with an eroding market simply by reducing costs. The decision to eliminate “Meat” from the name of the company to simply Beyond, is akin to moving deck chairs around on the Titanic. Interestingly Josh Tetrick in his ongoing shell game of names for his companies also uses a universal appellation of Just.
Basically, attempting to sell ersatz meat products at prices higher than the items they wish to replace coupled with inferior organoleptic properties is not a good hand to play. John Boken newly appointed Chief Transformation Officer from turnaround company Alixpartners LLP will not be able to reverse the downward slide. The obvious question is how Beyond Meat and presumably its major competitors will survive as independent entities. Many companies have withdrawn from the market or have hidden their losses by consolidating divisions as with Maple Leaf Foods.
At the end of the day if prospects for plant-based alt meat are dismal, investors will undergo an even shorter haircut by funding cell-cultured substitutes.
In reviewing the available animal-sourced protein, beef is currently expensive and will remain so given the need to reestablish the national herd and to combat New-world screwworm (Cochliomyia hominivorax) that has interrupted importation of live cattle from Mexico. Consumers have continued to purchase pork but chicken remains the protein of choice. Broiler meat will comprise 45 percent of domestic red meat and poultry RTC production in 2026 followed by pork at 26 percent and beef attaining 24 percent of U.S. output.