Beyond Meat NASDAQ: BYND reported second-quarter 2026 revenue above its guidance range as international retail growth partially offset continued weakness in U.S. channels and international food service. Management said the company is pursuing a turnaround centered on expanding in Europe and Canada, entering adjacent nutrition categories, and improving operating efficiency.
Net revenue fell 8.2% year over year to $68.8 million, exceeding the high end of the company’s $60 million to $65 million guidance range. The decline marked an improvement from revenue decreases of 15.3% in the first quarter and 19.7% in the fourth quarter of 2025, according to Founder, President and CEO Ethan Brown.
“All in a quarter of positive momentum with substantial ground still to cover,” Brown said.
Channel Performance Remained Mixed
The revenue decline reflected a 9.5% decrease in product volume, partly offset by a 1.4% increase in net revenue per pound. CFO and Treasurer Lubi Kutua said the largest pressure continued to come from food-service channels in the U.S. and abroad, while retail trends, particularly internationally, showed more encouraging improvement.
- U.S. retail revenue declined 9.9% to $29.6 million, with volume down 5.7% amid category softness and reduced distribution points.
- U.S. food-service revenue fell 27.6% to $8 million, driven primarily by a 27.4% drop in volume.
- International retail revenue increased 16.5% to $18.5 million, supported by higher burger and chicken sales in Europe and increased ground-beef product sales in Canada.
- International food-service revenue declined 16% to $12.7 million, reflecting lower sales of burger and chicken products to certain quick-service restaurant customers in Europe and Canada.
Brown said Europe and Canada represent the company’s clearest near-term growth opportunities. He attributed stronger European results in part to consumer concern about climate issues and said the company faces less of what he characterized as misinformation from incumbent meat-industry campaigns than it does in the U.S.
In the U.S., Brown said certain accounts have shown resilience for the company’s burger, ground beef and dinner sausage products, though conditions vary by retailer. Some distribution losses related to packaging changes are expected to be transitory, Kutua said, while broader category softness remains a challenge.
Margins Improved Sequentially, While Profit Included Debt Gain
Beyond Meat posted gross profit of $5.9 million, equivalent to an 8.5% gross margin, compared with gross profit of $7.9 million and a 10.6% margin a year earlier. Brown said the margin was roughly five and six percentage points better than the first quarter of 2026 and fourth quarter of 2025, respectively.
Second-quarter gross profit included $1.6 million in expenses related to the cessation of operations in China. Brown said this was the final quarter affected by accelerated depreciation associated with the China exit, which reduced margin by more than two percentage points.
Operating expenses fell 19% year over year to $36.7 million. They included $4.7 million in incremental share-based compensation expense tied to a convertible debt exchange, as well as an $11 million credit associated with the settlement of arbitration involving a former co-manufacturer.
Loss from operations narrowed to $30.8 million from $37.5 million a year earlier. The company recorded net income of $16.4 million, or $0.03 per basic share, compared with a net loss of $31.8 million, or $0.42 per share, in the prior-year period. The result included a $57.7 million non-cash gain on debt extinguishment.
Adjusted EBITDA was a loss of $27.7 million, compared with an adjusted EBITDA loss of $24.7 million in the prior-year quarter.
Turnaround Plan Includes New Products and Cost Actions
Brown outlined three strategic priorities: investing in growth in Europe and Canada while stabilizing the U.S. business; broadening the company beyond plant-based meat into nutrition-focused categories; and improving unit economics, fixed-cost absorption and cash use.
In U.S. retail, the company introduced Beyond Steak Filet at Wegmans and H-E-B in July, followed by Meijer, with additional retailers expected. It also expanded Beyond Chicken Pieces Spicy Buffalo to more than 2,000 Kroger stores and launched new Beyond Breakfast Sausage links and patties at Kroger, Sprouts and Whole Foods Market.
Beyond Meat also introduced Beyond Immerse, a lightly carbonated functional beverage, through its direct-to-consumer Beyond Test Kitchen platform and later through distributor Big Geyser in New York. Brown said the beverage combines plant protein, fiber, antioxidants and electrolytes, representing the company’s first launch under its expanded nutrition strategy.
On costs, management cited production-network consolidation, material contract renegotiations, warehouse consolidation, lower logistics expense and exits from less-profitable product lines. The company is also completing trials of a continuous production line at its Columbia, Missouri, facility, which Brown said is expected to improve conversion costs as volume increases.
Kutua said higher volumes remain important to improving fixed-cost absorption. He added that the company has seen some input-cost inflation but does not expect ingredient inflation to be excessively high this year, while warehouse consolidation has helped offset transportation volatility.
Cash Use Declined; Third-Quarter Outlook Maintained
Cash and cash equivalents, including restricted cash, totaled $186.1 million as of June 27. The carrying value of debt, net of debt discount, was $323.8 million.
Net cash used in operating activities during the first six months of 2026 was $23.2 million, compared with $58 million in the prior-year period. Capital expenditures were $4 million, down from $6.4 million. Brown said quarterly cash consumption excluding financing activities was approximately $18 million, down 44% from the year-ago period.
For the third quarter, Beyond Meat expects net revenue of approximately $60 million to $65 million. Kutua said the company continues to provide limited revenue guidance because of uncertainty and volatility in its operating environment.
About Beyond Meat (NASDAQ:BYND)
Beyond Meat, Inc NASDAQ: BYND develops, manufactures and sells plant-based meat substitutes designed to replicate the taste, texture and appearance of animal-based proteins. Since its founding in 2009 by Ethan Brown and initial public offering in 2019, the company has focused on leveraging proprietary technology and ingredient blends to produce a suite of products that cater to both retail and foodservice channels. Beyond Meat's mission centers on offering more sustainable protein options by reducing reliance on livestock farming and its associated environmental footprint.
The company's product portfolio includes Beyond Burger, Beyond Sausage, Beyond Beef and Beyond Chicken, each formulated to appeal to a broad range of consumers seeking meat alternatives without compromising on flavor or cooking versatility.
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.
Continue following MarketBeat
Add MarketBeat as your preferred source on Google to see our latest stories in your feed.
Before you consider Beyond Meat, you'll want to hear this.
MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Beyond Meat wasn't on the list.
While Beyond Meat currently has a Strong Sell rating among analysts, top-rated analysts believe these five stocks are better buys.
View The Five Stocks Here
Robotics and automation are rapidly becoming essential infrastructure across healthcare, manufacturing, logistics, and many other industries.
"Physical AI" is coming to the United States, and there are four ways that investors can gain exposure to this new robotics revolution. Plus, learn which seven companies are most positioned to benefit as intelligent robots enter the workforce.
Get This Free Report
