Beyond Meat, the plant-based meat alternative company, has denied reports that it is preparing to file for bankruptcy, even as it faces steep financial losses and declining consumer demand.
The company, known for its burger patties, chicken tenders, and other meat alternatives, has seen sales fall sharply. Second quarter revenue dropped nearly 20 percent year-over-year, with a net loss of $29.2 million and an operating loss of $34.9 million. CEO Ethan Brown admitted there has been “ongoing softness in the plant-based meat category” and said the company was “disappointed” with the low numbers.
Speculation grew after reports suggested the company was preparing to seek Chapter 11 bankruptcy protection. In a statement to Plant Based News, a spokesperson for Beyond Meat rejected the claim, saying, “We have not filed, nor are we planning to file, for bankruptcy,” adding that the rumors were “unequivocally false.”
Despite its denial, Beyond Meat has announced cost-cutting measures. The company will eliminate 6 percent of its workforce and has suspended operations in China, aiming to return to profitability by 2026.
Beyond Meat is also undergoing a rebrand, dropping the word “meat” from its name to become “Beyond.” The change is meant to emphasize its focus on plant-based protein rather than direct comparisons to actual meat products.
The shift comes as consumer preference in the US continues to favor traditional meat, which is often cheaper than vegan alternatives. Competition has also increased as organic retailers such as Whole Foods and Trader Joe’s roll out their own plant-based “meat” products, which cut into Beyond Meat’s market share.
Over the past five years, Beyond Meat’s stock value has collapsed, falling by 97 percent. Rival company Impossible Foods has also struggled, despite early backing from Bill Gates. It recently went through layoffs, and its CEO has even suggested the idea of blending real beef into its plant-based burgers to attract more customers.
