TLDR
- Beyond Meat stock crashed to an all-time low of $1.23 on Monday, down 32% for the day and roughly 50% year-to-date.
- The company launched an exchange offer to eliminate over $800 million in debt by swapping $1.15 billion in 0% convertible notes due 2027 for new 7% notes due 2030 plus 326 million stock shares.
- About 47% of creditors have agreed to the debt restructuring deal, which needs 85% approval by October 28 to take effect.
- The payment-in-kind arrangement lets Beyond Meat pay 9.5% annual interest with additional debt instead of cash, extending the maturity date to 2030.
- Beyond Meat posted its lowest quarterly revenue in Q1 2025 at $69 million and has laid off employees while suspending China operations as plant-based meat sales fell 7% in the US last year.
Beyond Meat shares sank to their lowest price ever on Monday. The stock hit $1.23 during trading before closing at $1.93, down 32.1% for the day.
The drop came after the company announced a major debt restructuring plan. Beyond Meat is trying to wipe out more than $800 million in debt through a bond exchange offer.
The stock has been in freefall for a while now. Shares are down about 50% so far this year and have dropped 82% over the past 12 months.
Beyond Meat currently owes $1.15 billion through convertible notes that come due in 2027. These bonds carry a 0% interest rate.
The new plan would swap those notes for different ones. Creditors would get up to $202.5 million in new convertible notes that pay 7% interest and mature in 2030.
They would also receive 326 million shares of Beyond Meat common stock. That’s a lot of new shares hitting the market.
The new notes come with a twist called payment-in-kind. This means Beyond Meat can pay the interest with more debt instead of cash. The payment-in-kind rate would be 9.5% per year.
CEO Ethan Brown said the exchange offer aims to reduce leverage and extend maturity. He called these outcomes important for the company’s long-term vision as a global plant protein company.
Creditors Face Decision Deadline
So far, about 47% of the holders of the 2027 notes have agreed to the exchange. That represents roughly $203 million in new bonds.
Other creditors have until October 28 to accept or reject the offer. Those who agree before October 10 will get a premium payment.
The deal only goes through if 85% of creditors sign on. That’s a high bar to clear.
Beyond Meat needs this to work. The company posted its lowest quarterly revenue ever in Q1 2025 at just $69 million.
Last month, the company reported another revenue drop and a wider-than-expected loss. Management cited weak consumer demand in the US market.
They also said they face “an elevated level of uncertainty” going forward. The company won’t provide full-year financial estimates.
Consumer spending has taken a hit from economic uncertainty. Tastes are also shifting in the plant-based meat market.
Analysts Warn of Risk
The company has been making cuts to stay afloat. Beyond Meat laid off 9% of its global workforce in February, about 64 employees.
That included all its staff in China, where operations have been suspended. In August, another 44 employees in North America lost their jobs.
Beyond Meat also secured $100 million in debt financing from Unprocessed Foods earlier this year. The lender is a subsidiary of the Ahimsa Foundation, a non-profit promoting plant-based diets.
The company hired John Boken as interim chief transformation officer. He’s a managing director at corporate restructuring firm AlixPartners.
The goal is to become EBITDA-positive by the second half of 2026. That means generating positive earnings before interest, taxes, depreciation and amortization.
TD Cowen analysts noted that management recognizes the “existential threat” facing the business. The firm said the company is taking steps to preserve cash and stabilize sales.
But the analysts still recommend selling the stock. They cited the company’s fragile financial situation and weak demand for meat alternatives.
Of the nine analysts covering Beyond Meat, three rate it a hold. Six rate it a sell or strong sell, according to LSEG data.
Plant-based meat sales in the US dropped 7% last year. Concerns about pricing and ultra-processing have pushed consumers away.
Beyond Meat is also rebranding by dropping “Meat” from its name. The company wants to focus on traditional plant proteins instead.
Its next product, Beyond Ground, contains just four ingredients. The formula uses fava bean protein, potato protein, water and psyllium husk and doesn’t try to mimic meat.
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