Beyond Meat Subleases Space in El Segundo Deal: Financial and Operational Implications

Beyond Meat has subleased 54,749 sq ft in El Segundo, CA to Varda Space Industries. The agreement runs until October 31, 2033 and involves structured rent payments with provisions for rent abatements and improvement allowances. Analysts rate BYND stock as a Sell with a $3.50 price target.

Beyond Meat, Inc. (NASDAQ: BYND) has entered into a sublease agreement with Varda Space Industries, Inc., according to a filing with the Securities and Exchange Commission. The agreement, effective as of July 22, 2025, involves the sublease of approximately 54,749 rentable square feet at Beyond Meat's facility located at 888 N. Douglas Street, El Segundo, California [1].

Under the terms of the sublease, Varda Space Industries will pay monthly rent starting at approximately $50,901 for the improved space and $113,346 for the unimproved space, with annual increases of 3%. The commencement date for the improved space is set for 30 days after landlord consent is received, while the unimproved space commencement date will be either when Varda achieves substantial completion of its improvements or 13 months after landlord consent, whichever comes first. The sublease is scheduled to expire on October 31, 2033, unless extended or terminated earlier under its terms [1].

Beyond Meat will also contribute up to $80,000 for building a demising wall, while Varda will provide a letter of credit totaling $1,564,527 as security. The agreement includes an improvement allowance of $3,350,600 from the master landlord for construction within the unimproved space [1].

Analysts remain bearish on Beyond Meat, with a consensus "Moderate Sell" rating on the stock. TD Cowen and Bernstein have recently revised their price targets for Beyond Meat, reducing them to $2.00 and $2.50, respectively, while maintaining a Sell and Market Perform rating, respectively [2]. Despite the recent sublease agreement, the company continues to face significant financial challenges, including a heavy debt burden of $1.22 billion and negative EBITDA of $127.1 million in the last twelve months [1].

Beyond Meat is scheduled to report its second-quarter 2025 financial results on August 6, 2025, after market close. Investors can participate in the live call by dialing 785-424-1789 and can access a webcast on the Investors section of Beyond Meat's website [3].

References:
[1] https://www.investing.com/news/sec-filings/beyond-meat-enters-sublease-agreement-with-varda-space-industries-93CH-4156225
[2] https://finance.yahoo.com/news/why-beyond-meat-bynd-shares-160101983.html
[3] https://www.stocktitan.net/news/BYND/