When Beyond Meat went public in 2019 in an initial stock offering that saw its shares nearly triple in price, it seemed to confirm that plant-based meats had arrived.
The food technology, capable of converting beans into something approaching meat in taste and appearance, caught the imagination of the public, restaurant chefs, and media alike. Deals with fast-food chains and soaring sales during the pandemic seemed to only underscore how a once-fringe idea had gone mainstream.
But those heady days are over as industry sales have fallen amid concerns about the healthfulness of plant-based meat, a sticker price that remains higher than a basic burger — and the fact that the product still only approximates the real thing.
“We thought we were just gonna go from our meteoric rise into the mainstream and not have to deal with this cycle that we’re in,” said Beyond Meat founder and Chief Executive Ethan Brown, in an interview at the company’s new El Segundo offices. “The trough has been a difficult place to be the last couple of years.”
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Now the company is betting it can turn around its fortunes with a newly formulated burger that it says not only is a big leap in taste, but has won the seals of approval of leading health and nutrition organizations.
“I give credit where it’s due. I think they’ve made some clear improvements in the ingredients and nutritional profile, so there’s clear progress there,” said John Baumgartner, an analyst at Mizuho Securities, who has had an “underweight” rating on Beyond’s stock.
As the first plant-based meat company to go public, Beyond has been an industry bellwether, with its travails documented in the media and regulatory filings.
Though the company’s growing lineup, including breakfast patties, beef tips, and chicken tenders, are sold at 130,000 retail and food service outlets worldwide, some of its heralded fast-food deals with companies such as Carl’s Jr., Dunkin Donuts, and KFC have either petered out or not moved beyond test phases.
It’s also faced stiff competition from chief rival, Impossible Foods in Redwood City, Calif., which has made fast sales gains at supermarkets and is available as a Whopper at Burger King.
Beyond’s net revenue fell by more than 25% to $343 million in 2023 compared with 2021. Sales decreased another 18% in the first quarter of this year, with the company racking up $54 million in losses.
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