Beyond Meat, Inc. (NASDAQ: BYND) saw its stock price plummet 5.14% in after-hours trading on Wednesday following the release of disappointing second-quarter results and announcements of cost-cutting measures. The plant-based meat alternative company reported earnings and revenue that fell short of analyst expectations, signaling ongoing challenges in its business environment.
The company reported a Q2 adjusted loss of $0.40 per share, missing the analyst consensus estimate of $0.37 per share. Revenue for the quarter came in at $75 million, significantly below the expected $82 million and representing a 19.6% decrease compared to the same period last year. Beyond Meat attributed the decline to weak category demand and reduced distribution points in the U.S. retail channel, as well as lower sales of burger products to international foodservice customers.
In response to the challenging operating environment, Beyond Meat announced it would implement organizational changes and cost-reduction measures. This includes a plan to reduce its current workforce in North America by approximately 44 employees, representing about 6% of the company's total global workforce. The company expects to incur one-time cash charges of about $0.8 million to $1.3 million in connection with this reduction in force. Additionally, Beyond Meat refrained from providing full-year guidance, citing an "elevated level of uncertainty within its operating environment." For the third quarter of 2025, the company projects net revenues to be in the range of $68 million to $73 million, indicating continued pressure on sales.
Beyond Meat President and CEO Ethan Brown commented on the results, stating, "We are disappointed with our second quarter results, which primarily reflect ongoing softness in the plant-based meat category, particularly in the U.S. retail channel and certain international foodservice markets." He added that the company is responding by accelerating transformation activities, including more rapidly reducing operating expenses, prioritizing increased distribution of core product lines, and investing in margin expansion initiatives.