How Does Beyond Meat Make its Money?
Beyond Meat manufactures and sells plant-based meat products — burgers, sausages, ground meat, chicken tenders, and jerky — designed to replicate the taste, texture, and cooking experience of animal meat. Revenue comes from selling these products through U.S. retail (grocery stores), U.S. foodservice (restaurants and institutional), international retail, and international foodservice channels.
Revenue Breakdown
| Channel | 2024 | 2023 | YoY Growth |
|---|---|---|---|
| U.S. Retail | $103M | $119M | -13.4% |
| U.S. Foodservice | $75M | $82M | -8.5% |
| International Retail | $69M | $73M | -5.5% |
| International Foodservice | $78M | $73M | +6.8% |
| Total Revenue | $318M | $344M | -7.6% |
U.S. Retail — 32% of Revenue
Grocery store sales (Walmart, Kroger, Target, Costco, Whole Foods):
- Beyond Burger: The flagship product, sold in the meat case alongside animal-based burgers
- Beyond Sausage: Breakfast and bratwurst varieties
- Beyond Beef (ground): Crumbles and ground plant-based protein
- Beyond Chicken Tenders: Breaded plant-based chicken
Revenue has declined as the initial plant-based meat hype faded and repeat purchase rates disappointed.
U.S. Foodservice — 24% of Revenue
Sales to restaurants, QSR chains, colleges, hospitals, and stadiums. Key partnerships include some McDonald’s international markets (McPlant) and various restaurant chains. The foodservice channel has struggled as many QSR plant-based menu items were discontinued.
International — 46% of Revenue
International now represents nearly half of revenue, with stronger growth in foodservice (EU markets, McDonald’s Germany/UK McPlant).
Income Statement Overview
| Metric | 2024 | 2023 |
|---|---|---|
| Total Revenue | $318M | $344M |
| Gross Profit | $58M | $0.2M |
| Operating Income | -$152M | -$262M |
| Net Income | -$191M | -$338M |
Key Financial Metrics
- Gross Margin: 18.2% — Improved dramatically from 0.1% in 2023, reflecting cost reduction efforts and manufacturing efficiency. Still far below the 33%+ levels needed for sustainability.
- Operating Margin: -47.8% — Deeply unprofitable, though losses are narrowing. Beyond Meat cut ~200 employees (19% of workforce) in 2023.
- Revenue Decline: -7.6% — The plant-based meat category has contracted. Consumer adoption plateaued after the 2019-2020 hype cycle.
- Cash Position: ~$140M — Limited runway. Beyond Meat has taken on significant debt ($1.1B in convertible notes) and may need additional financing.
What to Watch
- Category recovery — The plant-based meat market contracted post-hype. Whether the category stabilizes and returns to growth depends on improved taste, price parity with animal meat, and health perceptions.
- Path to profitability — Beyond Meat is cutting costs aggressively but revenue is still declining. Achieving gross margins above 25% and eventually reaching operating breakeven is essential for survival.
- Price competitiveness — Beyond Burgers (~$7-8 for two patties) cost 2-3x more than animal beef. Price parity would dramatically expand the addressable market.
- International expansion — International markets (especially Europe) are more receptive to plant-based meat. McDonald’s McPlant in Germany and UK provides a channel. International growth partially offsets U.S. decline.
- Balance sheet risk — $1.1B in convertible debt with limited cash and ongoing losses creates financial risk. Refinancing or equity dilution may be necessary.