Plant-based meat company Beyond Meat, Inc. will release its latest quarterly earnings report on November 11, 2025 (after US market close). The market is focusing on the progress of impairment assessments and the path to profitability recovery, with revenue and profits expected to remain under pressure. Margins and cost control will determine the short-term trend.

Notably, the company recently announced that its third-quarter earnings report, originally scheduled for November 4, will now be postponed to after market close on November 11, citing impairment losses related to certain long-term assets. Although the company expects this loss to have a "significant" impact on third-quarter results,

Market Forecast

According to Tiger Trade data, the market consensus expects Beyond Meat's third-quarter revenue to be $68.96 million, down 14.97% year-over-year; with earnings per share at -$0.313, up 23.58% year-over-year.

Market consensus forecasts for this quarter (Q3 FY2025) project total revenue of approximately $68.96 million, a year-over-year decrease of about 14.56%; adjusted earnings per share are expected to be -$0.313, improving by approximately 29.43% year-over-year; EBIT is expected to be -$30.34 million, a year-over-year decline of about 7.50%. In previous quarter communications, the company provided gross margin guidance of 10% to 11% for this quarter. With the uncertainty added by impairment accounting, net profit or net profit margin may still be under pressure.

The company's main business focuses on retail and foodservice, with retail revenue at $48.776 million, accounting for approximately 65.07%, and foodservice revenue at $26.182 million, accounting for approximately 34.93%. The retail channel remains a highlight of revenue contributions. The company's business outlook remains highly concentrated in the retail channel, with last quarter's retail revenue at $48.776 million (year-over-year decline rate referencing company-wide year-over-year data: -19.56%). Structurally, the proportion of retail has increased, indicating potential improvement in consumer penetration and optimization of price/product combinations.

Last Quarter Review

Last quarter, the company reported total revenue of $74.958 million, down 19.56% year-over-year; gross margin was 13.73% (year-over-year comparison: maintaining double digits amidst overall declining backdrop); net profit attributable to the parent company was -$29.242 million, a 44.74% sequential improvement; net profit margin was -39.01%; adjusted earnings per share were -$0.40, a 24.53% year-over-year improvement.

Management continued to advance expense optimization and channel structure adjustments, with sequential profit improvement emerging as a significant financial highlight. By business segment, retail revenue was $48.776 million, and foodservice revenue was $26.182 million, with the retail proportion rising to approximately 65%, indicating stronger stability in revenue from household demand and store sales.

This Quarter's Outlook

Product Mix and Pricing Strategy in the Retail Channel

Retail remains Beyond Meat's main revenue driver, with last quarter's retail accounting for approximately 65%. In terms of pricing strategy, the company continues to balance product mix optimization with promotional investments, enhancing stickiness through iterations of the specifications and taste combinations of core products. At the same time, moderate promotions help maintain sales and shelf share amidst revenue pressure.

In the short term, if this quarter's gross margin falls within the 10% to 11% range, it implies that the company is balancing between promotional spending and supply chain costs, with the efficiency of raw materials and manufacturing being critical.

In the mid-term, the retail end's new products and the "health" label effect need to be deepened through cooperation with channel partners. Otherwise, under high inflation conditions where consumer budgets are tightened, price sensitivity will limit high-end pricing space. Given that the market expects year-over-year revenue decline of about 14.56%, enhancing the retail channel's contribution more relies on unit economics improvement and structural optimization of the product mix rather than solely price increases.

Pace of Foodservice and Cooperation Expansion

The foodservice business contributed approximately $26.182 million last season, accounting for about 35%. Industry feedback indicates that while foodservice partnerships continue, the number of products that can become permanent menu items is limited, directly affecting order continuity and scale stability.

For this quarter, the company is more likely to focus on limited-time or regional partnerships with major chains to test consumer acceptance and operational costs. If a better balance can be found between taste, serving efficiency, and cost, repeat purchases and menu retention for the foodservice channel are likely to improve. Considering the market estimates for this quarter's EBIT at -$30.34 million, expenses remain a restriction on profitability, necessitating careful evaluation of the pace of cash burn for any foodservice expansion. If the impairment assessment involves long-term assets, a reassessment of capacity deployment and regional strategy may make the foodservice channel more focused on higher ROI cooperation models.

Profit Elasticity from Gross Margin and Expense Control

Last quarter's gross margin was 13.73%, while this quarter the company previously guided a range of 10% to 11%, indicating short-term margin pressure. If management makes progress in supply chain, raw material procurement, and production efficiency, the downward margin trend could be mitigated, potentially leading to marginal improvements in EBIT and EPS through expense control. The market expects this quarter's adjusted earnings per share to be -$0.313, a year-over-year improvement of approximately 29.43%, highlighting the importance of expense optimization as a key driver.

An important variable is the impairment assessment. If significant impairment related to long-term assets occurs, it will directly impact GAAP profits and net profit margin, possibly weakening positive operational signals. In the short term, investors will focus on management's quantitative targets for inventory, capacity utilization, and promotional activities, as well as clear guidance on cash consumption. In the mid-term, if the company reduces complexity through product line simplification and regional focus, the path to margin recovery will be clearer.