Q3 2025 Beyond Meat Inc Earnings Call
Later, you'll have the opportunity to ask questions. During the question and answer session to ask a question you May Press Star then one on a touchtone phone to withdraw your question. Please press Star then two please note this call is being recorded and.
Speaker #3: Specifically , we reduced debt levels by approximately $900 million , nearly 75% of our total leverage , and put in path to place a potentially another convert 209 million , for a total reduction of over 90% .
And we will be standing by if you need any assistance with star zero. It is now my pleasure to turn today's conference over to Paul Shepherd, Vice President of F DNA and Investor Relations.
Speaker #3: In total , outstanding debt . Before consideration of any Pik interest . Further , the transaction not only significantly reduced leverage levels , but extended the maturity of most of our overall debt profile .
Thank you Hello, everyone and thank you for your participation in today's call. Joining me are Ethan Brown, founder, President and Chief Executive Officer, and <unk>, Chief Financial Officer Treasurer.
Speaker #3: We view this as an important resetting of our balance sheet, and one that supports, in many ways, a reset of our business as we target sustainable operations and renewed growth.
By now everyone should have access to our third quarter 2025 earnings press release filed yesterday after market close. This document is available in the Investor Relations section of <unk> website at Www dot beyond meat Dot com.
Speaker #3: Clearly, we are disappointed by where this quarter's results stand, which I will now summarize before outlining, with as much specificity as this forum permits, our path forward.
Before we begin please note that all the information presented today is unaudited and during the course of this call management may make forward looking statements within the meaning of the federal Securities laws.
Speaker #3: Net revenue of $70.2 million came in within our guided range, but nevertheless represents a 13% decline year over year as we faced ongoing category challenges.
These statements are based on management's current expectations and beliefs and involve risks and uncertainties that could cause actual results to differ materially from those described in these forward looking statements.
Speaker #3: This quarterly net revenue decline , less favorable product and higher trade mix promotion spending versus the prior year , put pressure on gross margin , even as conversion costs fell on a year over year basis .
Forward looking statements in our earnings release, along with the comments on this call are made only as of today and we will not be updated as actual events unfold.
Speaker #3: Lower volumes also reduced fixed cost absorption , and we continue to experience a transitory accounting drag in the form of $1.7 million in non-cash charges to the suspension of our China operational activities .
We refer you to yesterday's press release, our quarterly report on Form 10-Q for the quarter ended September 27th 2025 to be filed with the SEC and our annual report on Form 10-K for the fiscal year ended December 31st 2024, along with other filings with the SEC.
Speaker #3: Accordingly , gross margin landed at 10.3% in the third quarter , down from 17.7% in the year ago period . Operating expenses , excluding a large non-cash charge impairment relating to certain long lived improved on both assets , the year over year and sequential basis .
For a detailed discussion of the risks that could cause actual results to differ materially from those expressed or implied in any forward looking statements today.
Please also note that on todays call management May reference adjusted EBITDA adjusted loss from operations and adjusted net loss, which are non-GAAP financial measures.
While we believe these non-GAAP financial measures provide useful information for investors any reference to this information is not intended to be considered in isolation or as a substitute for the financial information presented in accordance with GAAP.
Please refer to yesterday's press release for a reconciliation of these non-GAAP financial measures to their most comparable GAAP measures.
And with that I would now like to turn the call over to Ethan Brown.
Thank you Paul and good afternoon, everyone.
First and foremost I would like to recognize all veterans on this important day of absorptions, including those veterans were fortunate enough to have on our team it beyond.
You have exemplified the values of putting others in country <unk>.
And we are deeply appreciative of your service and sacrifice and courage.
We are indebted to each of you and that is top of mind today.
I will now turn to the business and cover three main subject areas.
First I will seek to put our recent balance sheet activities in appropriate context.
Second I'll briefly review the performance headlines from our third quarter of 2025.
It was also point to a business that remains in turnaround mode.
Third.
Outline the key operational topline initiatives you are taking in pursuit of this turnaround and return to growth.
Though a protracted process, our recently announced transaction with our bondholders for sweeping in its scope.
And together with the nearly $150 million in cash we raised through the completion of our existing ATM program represents a fundamental reset of our balance sheet.
Specifically, we reduced debt levels by approximately $900 million nearly 75% of our total leverage and put in place a path to potentially convert another $209 million for a total reduction of over 90% and total outstanding debt before consideration of any pik interest.
Further the transaction not only significantly reduced leverage levels, but extended the maturity of most of our overall debt profile.
We view this as an important resetting of our balance sheet and one that supports in many ways a reset of our business as we target sustainable operations and renewed growth.
Clearly we were disappointed by this quarter's results, which I will now summarize before outlining this much specificity at this forum permits our path forward.
Net revenue of $70 $2 million came in within our guided range, but nevertheless represented 13% decline year over year as we faced ongoing category challenges.
This quarterly net revenue decline, coupled with a less favorable product mix and higher trade promotion spending versus the prior year put pressure on gross margin, even as conversion costs fell on a year over year basis.
Lower volumes also reduced fixed cost absorption and we continued to experience a transitory accounting drag in the form of $1 7 million.
Non cash charges related to the suspension of our China operational activities.
Accordingly, gross margin landed at 10, 3% in the third quarter down from 17, 7% in the year ago period.
Operating expenses, excluding a large noncash impairment charge related to certain long lived assets improved on both a year over year and sequential basis.
I should note that operating expenses in the third quarter included substantial non routine expenses a feature that makes our cost cutting appear more incremental than our underlying progress would suggest.
Highly conscious of the opportunity or substantial delevering and increase liquidity provides.
We are intensely focused on the five following steps towards sustainable operations and returned to growth.
One we continue to address misinformation surrounding our plant based meats.
I should note that operating expense in the third quarter included substantial non-recurring expenses, a feature that makes our cost cutting appear more incremental than our underlying progress would suggest.
As many of you are aware as industrial livestock and pharmaceutical interest rally around scare tactics and misinformation to confused consumers. We are driving the health profile of our products to greater heights, so as to reduce the disingenuous to the observed.
Highly conscious of the opportunity or substantial de-levering and increase liquidity provides.
We are intensely focused on the 5, follow steps towards sustainable operations and return to growth.
The results of our multiyear efforts as a growing range of products such as to beyond four platform and beyond stake that deliver on taste with ingredients nutritional profiles and have earned various accreditations and recognitions and the clean label projects American Diabetes Association, and American Heart Association and enthusiastic support from the precedent.
1, we can continue to address misinformation surrounding our plant-based Meats.
As many of you are aware, industrial livestock and pharmaceutical interests rally around scare tactics and misinformation to confuse consumers.
We are driving the health profile of our products to greater heights, so as to reduce the disingenuous to the absurd.
Assembly of leading medical nutrition experts.
More of this journey as shared in our short approximately nine minute documentary on Youtube planting change.
At this defining commitment is made clear in product advertising that highlights impressive ratios of protein to saturated fat cholesterol and calories together with great taste and clean simple limited ingredients.
The results of our multi-year efforts is a growing range of products, such as the Beyond 4 platform and Beyond Steak. They deliver on taste with ingredients and nutritional profiles and have earned various accreditations and recognitions from the Clean Label Project, American Diabetes Association, and American Heart Association, as well as enthusiastic support from the press and a panel of leading medical nutrition experts.
It has also made clear in our innovation roadmap, where new products are designed to reinforce this message.
More of this journey is shared in our short, approximately 9-minute documentary on YouTube, Planting Change.
<unk> for example are beyond chicken pieces, which although still gaining national retail distribution has achieved considerable taste and nutrition accolades, while delivering 21 grams of protein per serving with zero cholesterol and less than one gram of saturated fat from heart healthy avocado oil all in just 150 calories.
In this defining commitment is made clear in product, advertising that highlights impressive, ratios of protein, to saturated fat, cholesterol and Cal together with great taste and clean. Simple limited ingredients,
And we've recently opened beyond test kitchen, where consumers get the early opportunity to buy our latest innovation for hits supermarket shelves.
The first two innovations on this direct to consumer platform.
Purposely exemplify our commitment to delivering taste and strong macro nutrient ratios with clean simple and limited ingredients.
It is also made clear in our innovation roadmap where new products are designed to reinforce this message. Consider, for example, our Beyond Chicken pieces, which, although still gaining national retail distribution, have achieved considerable taste and nutrition accolades while delivering 21 grams of protein per serving with zero cholesterol and less than 1 gram of saturated fat from heart-healthy avocado oil, all in just 150 calories.
One is beyond steak fillet, which provides 28 grams of protein with zero cholesterol and only one gram of saturated fat from heart healthy avocado oil all with only 230 calories per serving.
And we've recently opened Beyond Test Kitchen, where consumers get the early opportunity to buy our latest Innovation before hit Supermarket shelves.
The first two innovations on this direct consumer platform.
The other is the beyond ground platform simply put beyond ground Senate replace protein confidently stands on its own.
Purposely exemplify, our commitment to delivering taste and strong macronutrient ratios with clean simple and limited ingredients.
It's not trying to mimic any species of animal cow chicken a pig.
And is consistent with our increasing emphasis on using beyond versus beyond meat as our primary brand identifier.
1 is Beyond Steak fillet, which provides 28 grams of protein with zero cholesterol and only 1 gram of saturated fat from heart-healthy avocado oil, all with only 230 calories per serving.
It is made with only four ingredients water.
The other is the Beyond Ground platform.
Probably in protein.
<unk> protein and Celium husk.
And each serving delivers an impressive 27 grams of protein and four grams of fiber all in just 140 calories with no cholesterol.
Simply put, Beyond Ground is a senator plate. Protein confidently stands on its own. It's not trying to mimic any species of animal, say a cow, chicken, or pig. And it is consistent with our increasing emphasis on using Beyond versus Beyond Meat as our primary brand identifier.
Zero saturated fat and no added oils.
The original design is a blank canvas to be seasoned as a consumer would like and to our delight. We're watching early adopters develop a host of recipes around it.
It is made with only four ingredients: water.
Faba, Bean protein.
Potato protein, and celium husk.
For those who prefer to season variety, we're also selling tustin tomato.
Korean barbecue.
Each serving delivers an impressive 27 grams of protein and 4 grams of fiber, all in just 140 calories with no cholesterol.
And Chipotle Pineapple version.
Zero saturated fat and no added oils.
Two we are building back distribution in U S retail and U S foodservice.
In U S. Retail, we are successfully rebuilding distribution and seeking to consolidate our brand where possible into brand blocks.
The original is designed as a blank canvas to be seasoned as a consumer would like, and to our delight, we're watching early adopters develop a host of recipes around it.
As you'll recall over the last 18 to 24 months, we've seen a substantial migration of our products from a refrigerated meat.
For those who prefer a seasoned variety, we're also selling a Tuscan tomato, a Korean barbecue.
And chipotle pineapple version.
The frozen meat and frozen meat alternative aisle.
While we believe that ultimately plant and animal protein shall be offer to consumers and equally prominent locations in the supermarket and ideally in the same section to facilitate convenience and choice the unplanned and at times chaotic transition.
2. We are building back, distribution in US retail and US Food Service.
In UF retail, we are successfully rebuilding distribution and seeking to consolidate our brand where possible into brand blocks.
Fleet with long periods without product availability at all followed by consumers' lack of awareness regarding new placement has been damaging to our business.
As you would recall, over the last 18 to 24 months, we've seen a substantial migration of our products from the refrigerated meat aisle to the frozen meat aisle and the frozen meat alternative aisle.
Accordingly, we are now encouraging the consolidation of our brand where possible within brand blocks in the frozen section of supermarkets to reduce what can seem like a game of heightened go seat for the consumer.
Though we believe that ultimately, plants and animal protein should be offered to consumers in equally prominent locations in the supermarket.
And ideally in the same section to facilitate convenience and choice.
As we rebuild our presence in U S. Retail we are prioritizing consolidated offerings at high impact change to drive results. For example in October we announced plans with Walmart to increase availability of select products, but over 2000 stores nationwide.
The unplanned and at times chaotic, transition replete with long periods without product, availability at all. Followed by consumers, lack of awareness, regarding new placement has been damaging to our business.
Including our new beyond Burger six pack, which is designed to offer consumers value during sustained periods of economic stress.
Accordingly, we are now encouraging the consolidation of our brand, where possible within brand blocks in the frozen section of supermarkets, to reduce what can seem like a game of hide and seek for the consumer.
And U S. Foodservice, we are adjusting our go to market strategy to capture a higher percentage of operators, whose consumer base of signs of value to our award winning non GMO.
Rebuild our presence in US retail. We are prioritizing Consolidated offerings at high impact. Chains to drive results. For example, in October, we now planned with Walmart to increase availability of Select products at over 2,000 stores nationwide.
Basically it's made from simple and clean ingredients.
Though we expect a renewal of interest in plant based meats and the broader restaurant segment in the United States, particularly as the price of animal protein continues to rise and we start to achieve the necessary scale to consistently under price it.
Including our new Beyond Burger 6-pack, which is designed to offer consumers value during a sustained period of economic stress.
For the time being we see room for growth within institutions restaurant chains and other establishments that are more directly and explicitly focused on health and clean ingredients.
In U.S. Food Service, we are adjusting our go-to-market strategy to capture a higher percentage of operators whose consumer base assigns value to our award-winning non-GMO, plant-based meats made from simple and clean ingredients.
Accordingly, we are increasing our investments against these specific targets.
Three through.
Through our transformation office and program, we are implementing further actions to reduce and reset our operating expenses.
Though we expect a renewal of interest in plant-based meats in the broader restaurant segment in the United States, particularly as the price of animal protein continues to rise, we start to achieve the necessary scale to consistently underprice.
We continue to seek to more fundamentally and.
More quickly reset our operating base and as you recall, we have enlisted the restructuring supportive Alex partners, including our appointment of John <unk>.
For the time being, we see room for growth within institutions, restaurant chains, and other establishments that are more directly and explicitly focused on health and cleaning ingredients.
Accordingly, we are increasing our investments against these specific targets.
Chief transformation officer to accelerate the work of our transformation office.
We are deep into this process and are committed to positioning the business for a more fundamental re sizing of operating expense.
Through our transformation office and program, we are implementing further actions to reduce and reset our operating expenses.
We continue to seek to more fundamentally.
Further.
This underlying series of actions relating to our base operating expenses joined we believe will be a reduction in certain non routine and nonrecurring spend that burden our operating expense in 2025.
And more quickly reset our operating base. As you recall, we have enlisted the restructuring support of Alex Partners, including our appointment of John Boen as Chief Transformation Officer, to accelerate the work of our Transformation Office.
Four through our transformation office and program, we are taking additional action to expand margin and the currently constrained demand environment.
We are deep into this process and are committed to the position of business for a more fundamental resizing of operating expenses.
We have and will continue to take steps to exit certain unprofitable product lines, while reconfigure and others are making targeted investments in our facilities, including the continuous production line for certain popular but currently lower margin products and are doing extensive RFP works to drive competition and lower pricing with our supply chain.
Further, this underlying series of actions relates to our base. Operating expenses are joined by what we believe will be a reduction in certain non-routine and non-recurring spend that burdens our operating expense in 2025.
Through our transformation office and program, we are taking additional action to expand margin in the currently constrained demand environment.
As with operating expense, we expect this underlying margin progress to be accompanied by the retirement of certain drags previously mentioned.
Such as the charge for China related depreciation and remain committed to the goal of ladder and margins back to 30% plus five we are considering certain strategic initiatives that if successful could help accelerate a return to growth.
We have and will continue to take steps to assess certain unprofitable product lines, while reconfiguring others or making targeted investments in our facilities, including a continuous production line for certain popular, but currently lower-margin products.
And are doing extensive RFP work to drive competition, and lower pricing with our supply chain.
The path articulated above addresses a core challenges our business faces.
As with operating expense, we expect this underlying margin progress to be accompanied by the retirement of certain drags previously mentioned.
The need to counter misinformation and changed product narrative around our products.
Reestablish distribution and improved product availability in the U S retail and foodservice markets.
And drive significant operating expense reduction and margin expansion through our transformation office and program.
Such as the charge for China related depreciation, and we remain committed to the goal of returning margins back to 30% plus. We are considering certain strategic initiatives that, if successful, could help accelerate a return to growth.
The path articulated above addresses a core challenge our business faces.
These along with other similar efforts are designed to support the achievement of EBITDA positive operations as soon as possible.
The need to counter misinformation and change the product narrative around our products.
Even in an environment, where demand remains subdued for the near term.
Reestablished distribution and improved product, availability in the US retail and Food Service markets.
We do however, see the potential for growth outside of these actions, we take a more comprehensive view of the beyond brand and technology across our U S and European markets and we will be exploring this in quarters to come.
And drive significant operating expense reduction in margin expansion through our Transformation Office and program.
It would be too early to provide further information today for a host of reasons and as such I will leave the subject now for future updates.
These, along with other similar efforts, are designed to support the achievement of positive operations as soon as possible.
Even in an environment where demand remains subdued for the near term.
In closing.
As those of you who have followed us closely know well over the last decade, or so we've looked at the forefront of the rise and precipitous destabilization of a nascent industry with a deeply disruptive potential.
We do, however, see the potential for growth outside of these actions. We take a more comprehensive view of the Beyond brand technology across our U.S. and European markets, and we will be exploring this in quarters to come.
All too typical of the heavy turbulence experienced by our company so closely wedded to emerging innovation we have.
It would be too early to provide further information today for a host of reasons. And as such, I'll leave the subject now for future updates.
As they say been through it.
Along this journey I've sought to characterize our response is harnessing adversity to grow stronger.
Better and more capable of achieving our long term vision.
In closing, as those of you who have followed us closely know well over the last decade or so, we've lived at the forefront of the rise and precipitous destabilization of a nation industry with a deeply disruptive potential.
More than any time over the last six plus years of being a public company.
We have the opportunity today to reset our business and service to sustainable growth.
All too typical of the heavy turbulence experienced by a company so closely wedded to emerging innovation.
We've, as they say, been through it.
Behalf of all shareholders and on behalf of our mission.
We are buoyed by and I am personally moved by the tremendous support we have seen from retail investors.
Along this journey, I have sought to characterize our response as harnessing adversity to row stronger, better, and more capable of achieving our long-term vision.
The United States, all the way to Korea, and have great enthusiasm for winning on their behalf.
We are acutely aware of having more challenges to overcome.
More misinformation to counter more cost to cut and more margin to expand.
More than any time over the last 6, plus years of being a public company, we have the opportunity today to reset our business and service to sustainable growth, on behalf of all shareholders, and on behalf of our mission.
We've been in our turnaround phase for too long and moving forward you will not simply see more of the same from us.
There is plenty of fight left and beyond an enormous enthusiasm to use this reset to hasten our future as a global protein company, but tomorrow.
We are buoyed by, and I am personally moved by, the tremendous support we have seen from retail investors from throughout the United States all the way to Korea. We have great enthusiasm for winning on their behalf.
We are acutely aware of having more challenges to overcome.
With that I'll now turn the call over to Luca.
Information to counter more cost, to cut and more margin to expand.
Thank you Ethan and good afternoon, everyone.
I'll begin by reviewing our financial results for the quarter before providing some brief remarks on our outlook for the fourth quarter and finally, commenting on the significant balance sheet initiatives. We completed subsequent to the end of our third quarter.
We've been in our turnaround phase for too long and moving forward. You will not simply see more of the same from us.
There is plenty of fight left, and beyond an enormous enthusiasm to use this reset to hasten our future as a global protein company of tomorrow.
Total net revenues decreased 13, 3% to $70 2 million in the third quarter of 2025 compared to $81 million in the year ago period.
With that, I will now turn the call over to Lubi.
Thank you, Ethan, and good afternoon, everyone.
The decrease in net revenues was primarily driven by a 10, 3% decrease in the volume of products sold and a three 3% decrease in net revenue per pound.
I'll begin by reviewing our financial results for the quarter before, providing some brief remarks on our outlook for the fourth quarter. And finally commenting, on the significant balance sheet initiatives, we completed subsequent to the end of our third quarter.
The year over year weakness in volume of products sold continues to reflect general softness in the plant based meat category as well as select distribution losses and to a lesser extent impacts from competitive activity.
Total, net revenues decreased 13.3% to 70.2 million in the third quarter of 2025 compared to 81 million in the year ago. Period.
While category dynamics in our key international markets remain more favorable than the U S. Two of our top three markets in the EU have also been experiencing year over year declines according to consumer takeaway data.
The decrease in net revenues was primarily driven by a 10.3% decrease in the volume of products sold and a 3.3% decrease in net revenue per pound.
This underscores the current reach of the soft macroeconomic environment in plant based meat that we continue to navigate.
The year-over-year weakness in volume of products sold continues to reflect general softness in the plant-based meat category, as well as select distribution losses and, to a lesser extent, impacts from competitive activity.
With respect to pricing the year over year decrease in net revenue per pound was primarily driven by higher trade discounts, reflecting in part reduced promotional efficiency as well as changes in product sales mix, partially offset by favorable changes in foreign currency exchange rates.
While category dynamics in our key international markets remain more favorable than the U.S.
Two of our top three markets in the EU have also been experiencing year-over-year declines, according to consumer takeaway data.
Taking a closer look by channel U S. Retail net revenues decreased 18, 4% to $28 5 million in the third quarter of 2025 compared to $35 million in the year ago period.
This underscores the current reach of the soft macroeconomic environment in plant-based meat that we continue to navigate.
The decrease in net revenues was primarily driven by a 12, 6% decrease in volume of products sold mainly reflecting weak category demand and reduced points of distribution and a 6% six 6% decrease in the net revenue per pound.
With respect to pricing, the year-over-year decrease in net revenue per pound was primarily driven by higher trade discounts, reflecting in part reduced promotional efficiency, as well as changes in product sales mix, partially offset by favorable changes in foreign currency exchange rates.
Net revenue per pound was negatively impacted by higher trade discounts and price decreases of certain of our products, partially offset by favorable changes in product sales mix.
Taking a closer look by channel, U.S. retail net revenues decreased 18.4% to $28.5 million in the third quarter of 2025 compared to $35 million in the year-ago period.
In our U S. Foodservice channel net revenues decreased 27, 3% to $10 5 million in the third quarter of 2025 compared to $14 5 million in the year ago period.
The decrease in net revenues was primarily driven by a 12.6% decrease in the volume of products sold, mainly reflecting weak category demand and reduced points of distribution, along with a 6.6% decrease in net revenue per pound.
The decrease in net revenues was primarily driven by a 27, 1% decrease in volume of products sold.
Net revenue per pound was negatively impacted by higher trade discounts and price decreases of certain of our products, partially offset by favorable changes in product sales mix.
This decrease in volume was primarily driven by weak category demand and the lapping of a limited time offering of our chicken products at a <unk> customer in the year ago period.
Turning to international and international retail net revenues decreased four 6% to $15 8 million in the third quarter of 2025 compared to $16 6 million in the year ago period.
In our U.S. Food Service Channel, net revenues decreased 27.3% to $10.5 million in the third quarter of 2025 compared to $14.5 million in the year-ago period.
The decrease in net revenues was primarily driven by a 27.1% decrease in the volume of products sold.
The decrease in net revenues was primarily driven by a 12, 5% decrease in volume of products sold partially offset by a nine 1% increase in net revenue per pound.
This decrease in volume was primarily driven by weak category demand and the lapping of a limited-time offering of our chicken products at a QSR customer in the year-ago period.
The decrease in volume was primarily driven by reduced sales of our Burger dinner sausage and chicken products, mainly in Europe, whereas I mentioned earlier two of our top three markets are also experiencing software cap.
Turning to International, retail net revenues decreased 4.6% to $15.8 million in the third quarter of 2025 compared to $16.6 million.
The year over year increase in net revenue per pound and international retail was primarily driven by favorable changes in foreign currency exchange rates price increases of certain of our products and changes in product sales mix, partially offset by higher trade discounts.
The decrease in net revenues was primarily driven by a 12.5% decrease in the volume of products sold, partially offset by a 9.1% increase in net revenue per pound.
Finally international Foodservice net revenues increased two 4% to $15 3 million in the third quarter of 2025 compared to $15 million in the year ago period.
The decrease in volume was primarily driven by reduced sales of our burger dinner sausage and chicken products, mainly in Europe. Whereas I mentioned earlier, two of our top three markets are also experiencing software C.
The increase in net revenues was primarily driven by a four 4% increase in volume of products sold reflecting higher sales of chicken products to <unk> customer, partially offset by reduced burger sales to certain <unk> customers.
The year-over-year increase in net revenue per pound in international retail was primarily driven by favorable changes in foreign currency exchange rates, price increases of certain of our products, and changes in product sales mix, partially offset by higher trade discounts.
Net revenue per pound decreased 2% compared to the year ago period, primarily driven by changes in product sales mix, partially offset by favorable changes in foreign currency exchange rates and reduce trade discounts.
Finally, International Food Service net revenues increased 2.4% to $15.3 million in the third quarter of 2025 compared to $15 million in the year-ago period.
Moving down the P&L gross profit in the third quarter was $7 2 million or gross margin of 10, 3% compared to gross profit of $14 3 million.
The increase in net revenue was primarily driven by a 4.4% increase in the volume of products sold, reflecting higher sales of chicken products to a QSR customer, partially offset by reduced burger sales to certain QSR customers.
Gross margin of 17, 7% in the year ago period.
Gross profit and gross margin in the third quarter of 2025 included $1 7 million in expenses related to the suspension and substantial cessation of our operational activities in China.
Net revenue per pound decreased 2% compared to the year ago period, primarily driven by changes in product sales mix, partially offset by favorable changes in foreign currency exchange rates and reduced trade discounts.
More generally our gross margin also continues to be weighed down by lower volume, which is negatively impacting fixed cost absorption within our manufacturing facilities and more recently by higher trade discounts as a percentage of gross revenues.
Of 10.3%, compared to gross profit of $14.3 million.
For gross margin of 17.7% in the year-ago period.
While our total cost of goods sold per pound increased on a year over year basis, primarily reflecting higher materials costs and inventory provision, we made positive progress on reducing our conversion and logistics costs in this regard and through various initiatives under our transformation office, we are pursuing additional investments.
Gross profit and gross margin in the third quarter of 2025 included $1.7 million in expenses related to the suspension and substantial cessation of our operational activities in China.
More generally, our gross margin also continues to be weighed down by lower volume, which is negatively impacting fixed cost absorption within our manufacturing facilities. More recently, we have also experienced higher trade discounts as a percentage of gross revenues.
Which we expect to further benefit our conversion costs beginning in the early part of next year and we are optimizing our supply chain to bring additional savings out of our logistics costs in the U S.
Lastly, as Ian mentioned, we have also begun extensive RFP work to pursue potential savings on our materials costs.
While our total cost of goods sold per pound increased on a year-over-year basis, primarily reflecting higher materials costs and inventory provision, we made positive progress on reducing our conversion and logistics costs.
Now turning to operating expenses.
Opex for the third quarter of 2025 was $119 6 million, which included $77 4 million in noncash impairment charges related to certain of our long lived assets.
In this regard, and through various initiatives under our transformation office, we are pursuing additional investments, which we expect to further benefit our conversion costs beginning in the early part of next year. We are also optimizing our supply chain to wring additional savings out of our logistics costs in the U.S.
With regard to the impairment in accordance with accounting guidance under ASC 360, when certain triggering events or a combination of events have occurred we are required to review our long lived assets for potential impairment.
Lastly, as Ethan mentioned, we have also begun extensive RFP work to pursue potential savings on our materials costs.
Now, turning to operating expenses.
Given our lower than expected performance through the first three quarters of 2025, our view that the ongoing softness in the plant based meat category is likely to persist longer than previously anticipated and the decrease in our stock price during the quarter, we determined that that triggering events had occurred and performed a quantitative assessment that concluded that.
Opex for the third quarter of 2025 was $119.6 million, which included $77.4 million in non-cash impairment charges related to certain of our long-lived assets.
With regard to the impairment in accordance with accounting guidance under ASC 360, when certain triggering events or a combination of events have occurred, we are required to review our long-lived assets for potential impairment.
An impairment existed as of September 27th 2025.
The total impairment amount of $77 4 million was recorded as a loss on our income statement and allocated to PP&E operating lease <unk> assets and prepaid lease costs on our balance sheet.
In addition to the impairment charge operating expenses in the third quarter of 2025 also included certain non routine items are summarized in our earnings press release totaling approximately $2 1 million.
Given our lower-than-expected performance through the first three quarters of 2025, our view that the ongoing softness in the plant-based meat category is likely to persist longer than previously anticipated, and the decrease in our stock price during the quarter, we determined that triggering events had occurred and performed a quantitative assessment. That assessment concluded that an impairment existed as of September 27, 2025.
Excluding these items and the impairment charge operating expenses in the third quarter of 2025 decreased as compared to the year ago period, primarily driven by reduced marketing expenses and reduced salaries and related expenses for non production staff.
The total impairment amount of $77.4 million was recorded as a loss on our income statement and allocated to PP&E, operating lease Rao assets, and prepaid lease costs on our balance sheet.
Below the line total other income net was $1 6 million in the third quarter of 2025 compared to total other income net of $4 4 million in the year ago period, primarily due to a reduction in net realized and unrealized foreign currency transaction gains and an increase in interest expense related.
In addition to the impairment charge, operating expenses in the third quarter of 2025 also included certain non-routine items, as summarized in our earnings press release, totaling approximately $2.1 million.
Excluding these items and the impairment charge operating expenses in the third quarter of 2025 decreased as compared to the year ago, period, primarily driven by reduced marketing expenses and reduced salaries and related expenses for non-production staff.
To finance leases and our delayed draw term loan facility, partially offset by a benefit from the re measurement of warrant warrant liability as well as interest income.
Overall net loss inclusive of the aforementioned impairment charge was $110 7 million in the third quarter of 2025 compared to $26 6 million in the year ago period.
Net loss per common share was $1 44 in the third quarter of 2025 compared to net loss per common share of <unk> 41 in the year ago period.
Below the line total other income net was 1.6 million in the third quarter of 2025 compared to Total a lot of income. Net of 4.4 million in the year ago. Period primarily due to a reduction in net realized and unrealized foreign currency transaction gains and an increase in interest expense related to finance leases and our delayed draw Term Loan facility. Partially offset by a benefit from the remeasurement of war and light, warrant liability as well as interest income.
Adjusted EBITDA was a loss of $21 6 million or minus 38% of net revenues in the third quarter of 2025 compared to an adjusted EBITDA loss of $19 8 million or minus <unk> 24, 4% of net revenues in the year ago period.
Overall, the net loss, inclusive of the aforementioned impairment charge, was $110.7 million in the third quarter of 2025 compared to $26.6 million in the year-ago period.
Turning to our balance sheet and cash flow highlights, our cash and cash equivalents balance, including restricted cash was $131 $1 million and total outstanding debt was approximately $1 2 billion as of September 27 2025.
Net loss for common shares was $1.44 in the third quarter of 2025, compared to a net loss for common shares of $0.41 in the year-ago period.
Net cash used in operating activities was $98 1 million in the nine months ended September 27, 2025, compared to $69 9 million in the year ago period.
Adjusted IBA was a loss of $21.6 million or minus 30.8% of net revenues in the third quarter of 2025, compared to an adjusted IBA loss of $19.8 million or minus 24.4% of net revenues in the year-ago period.
While this increased rate of cash used from operating activities, partly reflects the negative impact of reduced sales and gross profit among other things. It is also worth noting that several non routine factors, including those related to our balance sheet initiatives and certain non routine legal expenses have also meaningfully added to cash use this year.
Turning to our balance sheet and cash flow highlights, our cash and cash equivalents balance, including restricted cash, was $131.1 million. Total outstanding debt was approximately $1.2 billion as of September 27, 2025.
Net cash used in operating activities was $98.1 million in the 9 months ended September 27th, 2025, compared to $69.9 million.
Capital expenditures totaled $9 3 million in the nine months ended September 27, 2025, compared to $4 5 million in the year ago period, largely reflecting increased investments in manufacturing capabilities intended to improve our production efficiency and expand our gross margin.
Including those related to our balance sheet initiatives and certain non-routine legal expenses, we have also meaningfully added to cash this year.
Net cash provided by.
Financing activities was $87 8 million in the nine months ended September 27, 2025, compared to net cash used in financing activities of $1 3 million in the year ago period.
The year over year increase in net cash provided by financing activities, primarily reflects draws in the aggregate amount of $100 million from our delayed draw term loan facility, partially offset by related debt issuance costs.
Capital expenditures totaled $9.3 million in the 9 months ended September 27th, 2025, compared to $4.5 million in the year-ago period. This reflects increased investments in manufacturing capabilities intended to improve our production efficiency and expand our gross margin.
I will now I will now touch briefly on our outlook for the balance of the year.
Net cash provided by financing activities was $87.8 million in the 9 months ended September 27th, 2025, compared to net cash used in financing activities of $1.3 million in the year-ago period.
As I indicated earlier in my remarks, we continue to navigate a soft and uncertain macroeconomic environment across several of our key geographies.
Under these circumstances it is difficult to forecast our operating operating results beyond the limited horizon and we are therefore, continuing to provide only limited guidance around our near term revenue expectations, specifically in the fourth quarter of 2025, we expect net revenues to be in the range of 60 to 65 million.
The year-over-year increase in net cash provided by financing activities primarily reflects draws in the aggregate amount of $100 million from our delayed draw Term Loan facility, partially offset by related debt issuance costs.
I'll note I'll now touch briefly on our outlook for the balance of the year.
As I indicated earlier in my remarks, we continue to navigate a soft and uncertain macroeconomic environment across several of our key geographies.
Reflecting among other things ongoing demand weakness in the plant based meat category and the anticipated impact from distribution losses at certain <unk> customers.
Before closing I'll take a moment to discuss some key events with respect to our balance sheet that occurred subsequent to the end of our third quarter.
Under these circumstances, it is difficult to forecast our operating results beyond a limited horizon, and we are therefore continuing to provide only limited guidance around our near-term revenue expectations.
On October 29th we announced the final tender results of our previously communicated debt exchange offer.
Successfully tendered notes in connection with the exchange offer represented just over 97% of the aggregate outstanding principal amount of our 2027 convertible notes.
Specifically, in the fourth quarter of 2025, we expect net revenues to be in the range of $60 million to $65 million, reflecting, among other things, ongoing demand, weakness in the plant-based meat category, and the anticipated impact from distribution losses at certain QSR customers.
Said differently, all but $29 $5 million of the original $1. One 5 billion aggregate principal amount of the 2027 convertible notes were successfully tendered in the exchange offer.
Before closing, I'll take a moment to discuss some key events with respect to our balance sheet that occurred subsequent to the end of our third quarter.
On October 29th, we announced the final tender results of our previously communicated debt exchange offer.
We believe this is a significant outcome that goes a long way in strengthening our company's balance sheet for the long term by substantially reducing our total debt outstanding and simultaneously extending the maturity of the vast majority of our remaining debt obligations.
successfully tendered notes and connection with the exchange offer represented just over 97% of the aggregate outstanding, principal amount of our 2027 convertible notes,
Following the final settlement date on October 30th as part of the exchange offer a total of approximately $209 7 million in aggregate principal amount of new second lien convertible notes and approximately 318 million new shares of common stock have been issued to previous holders of the 2027.
Said differently all, but 29.5 million of the original 1.15. Billion aggregate principal amount of the 2027 convertible notes were successfully tendered in the exchange offer.
We believe this is a significant outcome that goes a long way in our company's balance sheet for the long term by substantially reducing our total debt outstanding and simultaneously extending the maturity of the vast majority of our remaining debt obligations.
Critical notes, who participated in the exchange offer.
In addition, and separate from the exchange offer subsequent to the end of the third quarter, we sold approximately.
This was of common stock under our ATM program generating approximately $148 7 million in proceeds net of selling commissions.
As with the exchange offer we believe this incremental capital infusion goes a long way in strengthening our balance sheet for the coming quarters and further supports our efforts to execute our turnaround plan.
Following the final settlement date on October 30th, as part of the exchange offer, a total of approximately $209.7 million in aggregate principal amount of new second lien convertible notes and approximately 3.818 million new shares of common stock have been issued to previous holders of the 2027 convertible notes who participated in the exchange offer.
In addition, and separate from the exchange offer subsequent to the end of the third quarter, we sold approximately...
Notwithstanding these developments, we intend to continue to pursue our near term objectives with urgency and discipline as we target the achievement of sustainable operations as quickly as possible.
$5 of common stock under our ATM program, generating approximately $148.7 million in proceeds, net of selling commissions.
And with that I'll turn the call over to the operator to open it up for your questions. Thank you.
We will now begin the question and answer session.
As with the exchange offer, we believe this incremental capital infusion goes a long way in strengthening our balance sheet for the coming quarters and further supports our efforts to execute our turnaround plan.
You ask a question you May press Star then one on your Touchtone phone.
If youre using a speakerphone please pick up your handset before pressing the key.
Notwithstanding these developments, we intend to continue to pursue our near-term objectives with urgency and discipline as we target the achievement of sustainable operations as quickly as possible.
If at any time. Your question has been addressed and you would like to withdraw your question. Please press Star and then two alright.
And with that, I'll turn the call over to the operator to open it up for your questions. Thank you.
Our first question comes from Ben It's all year with Barclays. Please go ahead.
We will now begin the question and answer session.
Yes, good morning.
Good afternoon evening.
If an luby thanks for.
The detailed prepared remarks.
Congrats on some of the refinancing stuff.
Two quick ones I had for you. So number one Ethan you talked about your path to get back to a gross profit margin of 30% plus which is clearly something.
To ask a question, you may press *71 on your touchtone phone. If you're using a speakerphone, please pick up your handset before pressing the keys. If at any time your question has been addressed and you would like to withdraw your question, please press *2. Our first question comes from Ben, an analyst with Barclays. Please go ahead.
Used to have in the past in many years ago, even with the sales level that is comparable to what we have right. Now you were able to achieve that so just to help us maybe understand.
What's currently.
Holding you back of being as profitable as you may have been back in 2019. When sales was just around that high 200 close to 300 million Mark but gross margin was actually in the low <unk>. So that would be my first question and then I have a quick one for Luka on the financing piece.
That's great good to hear from you and thanks very much for the question.
So I think if you look at.
Our history on margin first of all I. Appreciate you recognizing that this is not something that is just.
Only future oriented we've had.
Healthy margins in the past and I think the main drag.
What's currently holding you back from being as profitable as you may have been back in 2019, when sales were just around that high $200 million, close to $300 million mark? But gross margin was actually in the low 30s. So that would be my first question, and then I have a quick one for Lubi on the financing piece.
You see throughout the P&L as the lower topline.
Great. And, uh, good to hear from you. And thanks very much for the question.
um,
We built the system.
That was for much higher revenue than we are currently facing.
And so we've been going through the process of trying to scale that back.
Our history on margin. First of all, appreciate you recognizing that, that this is not something that you know is is just uh
And deal with things like lower overhead absorption and things of that nature.
But I think it's really almost a tale.
Two different.
Only future-oriented. We've had, uh, you know, healthy margins in the past, and I think the main drag, uh, that you see throughout the P&L is the lower top line.
Uh, you know, we built a system.
Trends one is we have this lower top line, which is reverberating throughout the P&L and there is some pressure on margin as sort of mix.
That was for much higher revenue than we're currently facing. Uh, and so we've been going through the process of.
Some of our.
More pop Opex.
Recently have been.
Lower margin items.
A little bit of higher material costs, and we have to kind of knickknacks like the China depreciation charge I referenced among others.
Trying to scale that back uh and deal with you know things like um lower overhead absorption and things of that nature. Um but I think it's really almost a tale of of, of 2 different. Um,
Things are weighing down overall margin and it's just a question of calibrating the production capacity to the current level of demand I think the biggest issue we have.
Uh, Trends 1 is, uh, we have this lower top line, which is reverberating throughout the P&L, and there's some pressure, uh, on margin as a result of mix.
some of our
And then second.
There's a lot of underlying progress that's going on around.
Our operations and you can see that now this quarter for example in conversion costs are lower on a year over year basis.
But a lot of the progress is on a slightly longer timeframe and I expect it to start showing up in 2006, and so I'm actually pretty confident that we can make a substantial step change in our margin.
Over the over the next several quarters.
So if you look at.
If you look at the implementation of the continuous production lines that we're putting in.
For some of those lower margin.
Products that are inhibiting.
Leading to some of the mixed challenges, we're having those should be going in shortly so we expect to see improvement from there.
We're looking at the RFP work.
More popular products. Uh recently have been um lower margin items. Um, we have a little bit of higher material costs and we have this kind of knickknacks like the the China depreciation charge I referenced among among others. Um, so those things are weighing down overall margin and it's just a question of calibrating, the production capacity to the current level of demand. And I think the biggest, uh, issue we have. Um, and then second uh, you know, there's a lot of underlying progress, it's going on uh, around our operations and you can see that. Now, uh, this quarter, for example, in conversion costs, uh, they're they're lower on a year-over-year basis. Um, but a lot of the progress is on a slightly longer time frame and I expected to start showing up in 26 and so I'm actually pretty confident that we can, you know, make a substantial uh step change in our margin uh over the over, the next uh several quarters. And so if if if you look at um
That's going on now to pay dividend in 2006, and some of that's actually underway now we've seen some good savings with some key ingredients and of course, we're continuing to optimize our portfolio. So I think the conservative outcome of all of this is a healthy margin at much lower volume.
If you look at the implementation of the continuous production lines that we're putting in uh for some of those lower margin, uh uh uh uh products that are inhibiting, the that that are leading to some of the mixed challenges we're having, those should be going in shortly. So we expect to see improvement from their
But the optimistic outcome of all of this really is a growth resumes and we put forward some really nice margins right and so if we can continue to drive this work will at least get to healthy margins with a lower.
Top line, but if we can get back to growth all of this pays dividends that are of course much larger so I hope that was instructive.
Okay, and then maybe one for you.
We're looking at the RFP work uh uh that's going on now to pay dividends in 26 and some of that's actually underway. Now we've seen some good savings on some key ingredients and of course we'll continue to to optimize our portfolio. So I think the the conservative outcome of all of this is a healthy margin at much lower uh volume. Uh but the optimistic uh outcome of all of this.
Can you help us maybe reconcile at.
really is a growth resumed and
And of tober or whatever a few days ago, what your cash balance looks like because obviously at the end of September it was about call it $120 million, excluding the restricted piece of it.
So just to understand some of the the ATM transactions plus some of that <unk> has there been anything that has helped to get the cash balance up a little bit higher just in light of the quarterly cash burn still somewhat relevant so to understand a little bit like what's what's the level of cash right now.
We put forward some really nice margins, right? And so, if we can continue to drive this work, we'll at least get to healthy margins with a lower, uh, topline. But if we can get back to growth, all this pays dividends that are, of course, much larger. So, I hope that was, uh, instructive.
Yes, Hey, Ben so the only thing we can really comment on that happened subsequent to the end of the quarter is as what I discussed in my prepared remarks related to the ATM.
There were.
Obviously, we've detailed in some of our other disclosures around the.
Okay, well and then lubi 1 for you. Um, can you help us maybe reconcile at the end of October or whatever? A few days ago? What your cash balance looks like, because obviously as as the end of September, it was about to call it. 120 million. Excluding the the restricted piece of it. Um, so just to understand some of the, the ADM transactions plus some of that converted has there been anything that's helped to get the cash balance up a little bit higher, just in light of that the quarterly cash per and still somewhat relevant. So to understand a little bit like what's what's the level of cash right now?
The exchange offer that Theres, a certain amount of transaction fees that are associated with that.
But we're not prepared at this point to quantify exactly how much that was but I think if you look at.
The cash balance where we ended the quarter.
The third quarter, and then you add in the.
Incremental proceeds from <unk>.
From the ATM you would obviously have to make some assumptions about.
Some transaction fees paid as well as just kind of the ongoing rate of cash consumption of the business to get to the number that youre looking for but.
We can't at this point provide that specific information.
Okay. Thank you very much just quarterly.
The cash consumption is obviously something we're very very focused on.
We brought it down to.
To much lower levels in the past and I think you'll you should expect us to return to that I mean, we're obviously extremely focused on is EBITDA positive goal and a lot of the transformation work that's going on is designed to.
Yeah, um, hey been, so the only thing we can really comment on that, um, happened subsequent to the end of the quarter is, um, is what I, uh, discussed in my prepared, remarks related to the ATM. Um, you know, there were, um, obviously, you know, we've detailed in in some of our other disclosures around the, um, the exchange offer that, you know, there's there's a certain, um, amount of transaction fees that are associated with that, um, but you know, where where we're not prepared at this point to, to quantify exactly how much that was. But, you know, I think if you look at, you know, the the cash balance, um, you know, where we ended the uh, quarter, um, the the third quarter, and then you add in the um, incremental proceeds from the, um, uh, from the ATM. You would obviously have to make some assumptions about, um, you know, uh, some transaction fees paid as well as just kind of the ongoing, um, rate of
At this point, um, provide that specific information.
To really minimize cash use and ultimately turn into cash generation, but I think that this year has been characterized by a lot of nonrecurring and non routine expense that we've had.
The transaction going on we've had this arbitration, which we were successful and we won that which is nice nice.
Thanks outcome given that.
Okay, just on the quarterly on on the quarterly cash consumption. It's obviously something we're very very focused on, um, you know, we brought it down to to much lower levels in the past and and I think you'll you should expect us to return to to that. I mean, we're we're obviously focused on this Eva, positive goal and a lot of the transformation work that's going on is is designed to to to
The facts there.
So a lot of that hopefully will be burning off and we can get to.
Yes.
Okay perfect. Thanks for that Ethan Thanks Louie.
Thank you.
Again, if you have a question. Please press star and then one.
To really minimize cashews and ultimately turn them into cash generation. But I think that, you know, this year has been characterized by a lot of non-recurring and non-routine expenses. I mean, we've had the, you know, the transaction going on. We've had, um, this.
Arbitration, which we were successful in. And we won that, which is nice.
This concludes our question and answer session I would like to turn the conference back over to Ethan Brown for any closing remarks.
Nice outcome given the facts there. Um, so a lot of that hopefully will be burning off, and we can get to...
Okay, perfect. Thanks for that, Ethan. Thanks, Lubi.
Thank you and thanks folks for joining.
Thank you.
Thank you.
Again, if you have a question, please press star and then 1.
Given that we didn't have much Q&A I might just spend a minute reinforcing some of the comments that I made during the prepared remarks.
What are the main things that we need to keep doing.
This concludes our question-and-answer session. I would like to turn the conference back over to Ethan Brown for any closing remarks.
Return to growth is to change the narrative.
Around our products.
The brand in general.
Thank you, and thanks, uh, folks, for joining. You know, I think, um,
And you've heard me talk about this many times there is a very significant.
Set of misinformation out there that slowly I think we are making progress.
Given that we didn't have much Q&A, I might just spend a minute, uh, reinforcing some of the comments that I made, uh, during the prepared remarks.
Toward and helping to erode, but this is the key factor. We have spent so much time working on the health benefits of our products in the beyond four platform in subsequent products that are just getting cleaner and cleaner and healthier and healthier.
You know, one of the main things that we need to keep doing, uh, to return to growth is to change the narrative, uh, around our products, uh, and around the brand, in general. And you've heard me talk about this many times. There is a very, uh, significant...
um,
And I think thats starting to pay some dividends.
With a certain set of consumers who are able to look through a lot of misinformation is going on and make decisions for themselves and so we'll continue to encourage.
Folks to do that the.
The most recent products that we've launched around beyond ground and around beyond stake really speak to that whether it be on ground product being only four ingredients and to be honest take having a really terrific.
Macro nutrient profile of 20th protein listen one gram of of saturated fat and.
Et cetera, if thats coming from avocado oil, but the main point.
Is that the more we can get consumers to see.
Very strong health finished products.
The more we can get back into into growth mode. I think price is extremely important.
You know, set of misinformation out there that slowly, I think, uh, we are making progress, uh, toward and, and helping to erode. But this is the key factor. Uh, we have spent so much time, uh, working on the, the health benefits of our products and, you know, the Beyond 4 platform and, and subsequent products that are, you know, just getting cleaner and cleaner, and healthier and healthier. Um, and, uh, and I think that's starting to pay some dividends uh, uh, with a certain set of consumers who are able to look through a lot of the misinformation that's going on and make decisions for themselves. And so, we continue to encourage, uh, folks to, to do that, uh, the most recent products that we've launched around, you know, beyond ground and around Beyond stake, really speak to that with the Beyond ground, product being only 4 ingredients and to be on stake, you know, having that really terrific, uh,
C. C is focused on that and in fact in Europe, we are providing.
At the same price.
Macronutrient profile: 20 grams of protein, less than 1 gram of saturated fat. And that saturated fat is coming from avocado oil. But the main point, uh,
<unk> its animal protein equivalent to a very large customer one of our products. We are working very much on driving the price toward parity with animal protein.
But here in the U S.
Really around countering this this misinformation campaign.
I continue to come back to the work, we're doing with Stanford I continue to point out.
Is that the more we can get consumers to see the very strong health benefits of our products. Uh, the, the more we can get back into into growth mode. You know, I think price is extremely important. Uh, and and you see it, see us focused on that. In fact in Europe we are providing uh,
The support of the American Heart Association American Diabetes Association, so on and so forth. So that's the work that we're doing on fixed narrative youll see us continue to reinforce that with marketing you will see us continue to reinforce that with the new products that we put on the market.
And you'll continue to see us put.
Put out.
Put out information like planting change and other pieces that help the consumers see through some of the misinformation.
At the same, uh, price, uh, to its animal protein equivalent to a very large customer 1 of our products. So we are working very much on driving the price toward parity with animal protein. Um, but here in the U.S., uh, it's really around countering this, uh, this message information campaign. That's why I continue to come back to the work we've been doing with Stanford. I continue to point out, um, the.
In terms of innovation.
I mentioned towards the end of my prepared remarks that we're doing two things I think that should be of interest and hopefully hopefully point people in the direction that we're headed.
Support from the American Heart Association, American Diabetes Association, and so on and so forth. So that's the work that we're doing on. You'll see us continue to reinforce that with marketing; you'll see us continue to reinforce that with a new product. So we put on the market.
One is the increasing.
Emphasis on the word beyond versus beyond meat as we go forward and that's really around broadening the aperture of our business, we have tremendous innovation capabilities and I want to make sure that those are being put to the best use for the consumer.
Um, and you'll continue to see us, uh, put out this information—put out information like planting change and other pieces that help the consumer see through some of the misinformation. Um,
And so that's the first and the second is.
The beyond test kitchen.
In terms of innovation, uh, you know, I mentioned toward the end of my prepared remarks, that we're doing, uh, 2 things. I think that that should be of interest and helpfully. Hopefully, uh, Point people in the direction that we're headed 1 is the, uh, increasing emphasis on, uh,
It allows us to really.
Just beyond meat.
Open the gates on innovation and inexpensive way.
As we go forward.
Products to the consumer as we broaden this aperture and so any category that we go into you should expect us to raise the bar in terms of health and nutrition.
Taste and things of that nature, and I think we're capable of doing that because of the tremendous R&D capacity, we built up over the last nearly 17 years, we understand plant protein and plant ingredients.
And that's really around. Broadening the aperture of our business. Uh, we have tremendous, Innovation capabilities, and I want to make sure that those are being put to the best, use for the consumer. Um, and so, that's the first and the second is, um, the Beyond, uh, Test Kitchen. Uh, this allows us to really
That many many other companies don't and so as we look at other areas to tilt, our Arsenal with technology and R&D toward.
Open the gates on innovation in an inexpensive way and get our products to the consumer as we broaden this aperture. And so, in any category that we go into, you should expect us to raise the bar in terms of health and nutrition.
I hope I'm not drinking the Kool aid on this but I think that.
Our ability to go in there and do things that are disruptive is exciting.
Lastly over many years, we've built up a lot of innovation. So we have quite a bit of dry powder in terms of what we can go ahead and get into the market and so this is where my comments came from that don't expect more of the same from US we are.
Now, nearly 17 years, we understand plant protein and plant ingredients.
uh, in a way that many, many other companies don’t. And so, as we look at other areas to tilt our arsenal of technology and our need toward.
Looking to transform not only the operational base the margin of our company, but also the topline growth and we're thinking about that creatively and aggressively.
Uh, you know, I hope I'm not drinking the Kool-Aid on this, but I think that our ability to go in there and do things that are disruptive is exciting.
I really enjoyed the support of the retail investors recently.
Paying attention to their comments.
We feel very much indebted to them for their support and for their <unk>.
And lastly, over many years, we've built up a lot of innovation. So, we have quite a bit of dry powder in terms of what we can go ahead and get into the market. And so, this is where my comments came from: don't expect more of the same from us. We are, uh,
Continued commitment to beyond and we're looking forward to growing together with them in years to come so.
With that I'll wrap it up and.
Talk to you guys next time.
The conference has now concluded. Thank you for attending today's presentation you may now disconnect.
Looking to to transform, not only the operational, base the margin of our company, but also the Topline growth. And we're, we're thinking about that creatively and aggressively. You know, I really enjoyed, uh, the support of the retail investors recently. Um, you know, I've been paying attention to their comments. Um, we feel very much indebted to them, uh, for their support and, and for their, uh, continued commitment to Beyond and, and, uh, we're looking forward to Growing, uh, together with them and, and, and years to come, so,
Uh, with that, I'll wrap it up, and um,
Talk to you guys next time. Thanks.
The conference is now concluded. Thank you for attending today's presentation. You may now disconnect