Beyond Meat’s revenue declined 18% to $75.6 million from a year ago in the quarter ended March 30.
Beyond Meat, the purveyor of plant-based meat substitutes, has engaged with a group of bondholders to initiate discussions about a balance-sheet restructuring, according to people familiar with the matter.
The Los Angeles-based company’s liquidity has diminished over the past several quarters as it continues to burn cash. The group of bondholders, which has interests in Beyond Meat’s $1.1 billion of convertible notes, is working with the law firm Akin Gump Strauss Hauer & Feld, the people familiar with the matter said. The company is represented by Latham & Watkins.
Beyond Meat didn’t respond to requests for comment.
The company’s chief financial officer, Lubi Kutua, said on a February earnings call that the company planned to bolster its liquidity and potentially restructure its balance sheet this year.
For the quarter ended March 30, the company’s revenue declined 18% to $75.6 million year-over-year, while it had a net loss of $54.4 million, compared with a loss of $59 million the year prior. The company said that declines in both domestic and international retail and food-service channels were driven by decreases in volume of products sold, reflecting demand softness in the plant-based meat category.
Beyond Meat had $157.9 million of unrestricted cash and cash equivalents as of March 30, down from $190.5 million as of Dec. 31 and $217.5 million as of Sept. 30, 2023.
The company’s convertible notes traded at around 20 cents on the dollar earlier this month, analysts said. Beyond Meat’s stock traded at roughly $7 Wednesday for a market capitalization of about $460 million, down more than half from a year ago.
In 2019, Beyond Meat completed one of the most successful initial public offerings in more than two decades. After snagging celebrities as boosters and inking deals with major restaurants and supermarket chains, its valuation soared to more than $10 billion later that year. Since then, Beyond Meat has struggled with losses, consumer uncertainty about the product and other missteps.
Source: Wall Street Journal
