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Beyond Meat (BYND)
NASDAQ:BYND
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Beyond Meat
(NASDAQ:BYND)
29Underperform
Positive Factors
Revenue Growth
Sales increased 7.6%, slightly better than consensus expectations of +6.4% and gross margin of 17.7% was in line consensus.
U.S. Market Performance
U.S. sales (60% of total) increased 15%, driven by 14.6% growth in retail and 15.5% growth in foodservice.
Negative Factors
Capital Structure
Issuance of new shares during Q4 was dilutive to equity, reflecting the vulnerability of BYND's capital structure amid continued cash burn.
Market Demand
The plant-based meat category has seen volume contractions for an extended period, with consumer preference shifting towards conventional proteins.
Revenue Guidance
The FY25 revenue guidance is broadly disappointing, as it trails expectations and suggests the category is still struggling to find its footing.
Beyond Meat (BYND) vs. S&P 500 (SPY)
Market Cap
$206.99M
Dividend YieldN/A
Average Volume (3M)2.59M
Price to Earnings (P/E)―
Beta (1Y)1.32
Revenue Growth-4.93%
EPS Growth53.78%
CountryUS
Employees754
SectorConsumer Defensive
Sector Strength94
IndustryPackaged Foods
Share Statistics
EPS (TTM)-2.43
Shares Outstanding76,381,620
10 Day Avg. Volume2,143,100
30 Day Avg. Volume2,587,497
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.83
Price to Cash Flow (P/CF)-2.30
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$3.38Price Target Upside24.72% Upside
Rating ConsensusModerate Sell
Number of Analyst Covering6
Beyond Meat Business Overview & Revenue Model
Company DescriptionBeyond Meat, Inc. is a leading plant-based protein company that produces innovative food products designed to replicate the taste and texture of animal-based meats. Operating in the food production sector, Beyond Meat offers a range of products including burgers, sausages, ground beef, and more, catering to consumers seeking sustainable and healthier alternatives to traditional meat. Headquartered in El Segundo, California, the company is committed to improving human health, climate change, constraints on natural resources, and animal welfare.
How the Company Makes MoneyBeyond Meat generates revenue primarily through the sale of its plant-based meat products. The company's key revenue streams include retail sales through grocery stores, supermarkets, and online platforms, as well as foodservice sales to restaurants, cafés, and other food establishments. Beyond Meat has partnered with various foodservice providers and fast-food chains to integrate its products into their menus, enhancing its market reach and brand visibility. The company's earnings are significantly influenced by consumer demand for plant-based protein, expansion into international markets, and ongoing product innovation to meet diverse dietary preferences.
Beyond Meat Financial Statement Overview
Summary
Beyond Meat's financial performance is concerning. The company faces declining revenue, negative net profit margin, and substantial operational challenges. The balance sheet shows high leverage and potential solvency issues, while cash flow remains negative despite slight improvements.Income Statement
Beyond Meat's income statement reveals a challenging financial situation. The company experienced a decline in revenue with a negative revenue growth rate from 2023 to 2024. Gross profit margin has improved from a negative position in 2023, indicating some operational improvements, but net profit margin remains deeply negative due to significant net losses. Both EBIT and EBITDA margins are substantially negative, reflecting ongoing operational challenges and high costs relative to revenue.15
Very Negative
Balance Sheet
The balance sheet of Beyond Meat indicates a precarious financial position. The debt-to-equity ratio is concerning due to negative equity, which suggests financial instability and potential solvency issues. Return on equity is negative, aligning with the company's net losses. Equity ratio is also negative, further highlighting the company's high leverage and financial risk.10
Very Negative
Cash Flow
Cash flow analysis shows Beyond Meat is facing cash management challenges. Operating cash flow and free cash flow are negative, although there is a slight improvement from 2023 to 2024. The company has struggled to generate cash from operations, impacting its ability to sustain operations without external financing. The free cash flow to net income ratio is negative, indicating operational cash flow issues relative to net losses.20
Very Negative
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 326.45M | 343.38M | 418.93M | 464.70M | 406.79M | Gross Profit |
| 41.70M | -82.66M | -23.74M | 117.28M | 122.28M | EBIT |
| -156.12M | -341.90M | -342.77M | -159.14M | -42.91M | EBITDA |
| -156.12M | -282.19M | -305.44M | -150.34M | -34.46M | Net Income Common Stockholders |
| -160.28M | -338.14M | -347.19M | -179.13M | -52.75M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 131.91M | 190.50M | 309.92M | 733.29M | 159.13M | Total Assets |
| 678.15M | 774.45M | 1.06B | 1.38B | 468.01M | Total Debt |
| 1.22B | 1.22B | 1.19B | 1.16B | 40.11M | Net Debt |
| 1.09B | 1.03B | 883.82M | 424.06M | -119.02M | Total Liabilities |
| 1.28B | 1.29B | 1.27B | 1.25B | 100.91M | Stockholders Equity |
| -539.75M | -513.37M | -203.55M | 132.50M | 367.10M |
| Cash Flow | Free Cash Flow | |||
| -109.83M | -118.39M | -393.54M | -437.33M | -99.98M | Operating Cash Flow |
| -98.81M | -107.83M | -320.24M | -301.37M | -39.99M | Investing Cash Flow |
| -6.23M | -9.49M | -87.53M | -147.48M | -74.90M | Financing Cash Flow |
| 45.78M | -550.00K | 276.00K | 1.02B | -1.76M |
Beyond Meat Technical Analysis
Negative
2.71
Price Trends
3.44
Negative
3.82
Negative
5.06
Negative
Market Momentum
-0.13
Positive
37.20
Neutral
12.17
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BYND, the sentiment is Negative. The current price of 2.71 is below the 20-day moving average (MA) of 3.14, below the 50-day MA of 3.44, and below the 200-day MA of 5.06, indicating a bearish trend. The MACD of -0.13 indicates Positive momentum. The RSI at 37.20 is Neutral, neither overbought nor oversold. The STOCH value of 12.17 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BYND.
Beyond Meat Risk Analysis
Beyond Meat disclosed 84 risk factors in its most recent earnings report. Beyond Meat reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Beyond Meat Peers Comparison
Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $1.51B | 28.57 | 23.11% | ― | 29.14% | 140.02% | |
77 Outperform | $2.17B | 19.77 | 7.80% | 1.68% | 2.00% | 5.89% | |
63 Neutral | $20.84B | 14.17 | -16.36% | 3.22% | 1.30% | 4.55% | |
58 Neutral | $29.54M | ― | -0.17% | ― | 1.65% | 26.95% | |
51 Neutral | $479.21M | ― | -4.12% | ― | 9.76% | 85.23% | |
49 Neutral | $267.86M | ― | -91.64% | ― | 4.71% | 52.27% | |
29 Underperform | $206.99M | ― | 44.21% | ― | -4.93% | 53.78% |
* Consumer Defensive Sector Average
Performance Comparison
BYND
Beyond Meat
2.71
-3.78
-58.24%
WMK
Weis Markets
80.82
20.29
33.52%
WVVI
Willamette Valley Vineyards
5.95
1.53
34.62%
VITL
Vital Farms
34.01
9.13
36.70%
HNST
Honest Company
4.40
1.26
40.13%
OTLY
Oatly Group
8.95
-9.37
-51.15%
Beyond Meat Earnings Call Summary
Earnings Call Date: Feb 26, 2025 | % Change Since: -23.88% | Next Earnings Date: May 7, 2025
Earnings Call Sentiment Neutral
Beyond Meat showed positive signs of recovery with consecutive quarters of revenue growth, cost reductions, and international expansion. However, challenges remain with overall declining annual revenue, difficulties in certain segments, and the suspension of operations in China. Efforts to improve gross margin and reduce operating expenses are ongoing.Highlights
Return to Revenue Growth
Beyond Meat registered two consecutive quarters of year-over-year net revenue growth after more than two years of declining sales, signaling a positive turnaround.
Significant Reduction in Operating Expenses
The company reduced operating expenses by over $50 million in 2024, excluding a $7.5 million settlement, which contributed to a nearly $100 million year-over-year improvement in adjusted EBITDA.
International Expansion
Notable international growth included the launch of Veggie McPlant Nuggets at over 1,500 McDonald's in France and the expansion of Beyond Steak in French retail, amongst other European market introductions.
Improved Gross Margin and COGS
Gross margin improved to 13.1% in Q4 2024, with COGS per pound decreasing to $3.91, the best result since Q2 2021.
Lowlights
Ongoing Revenue Decline
Overall net revenues for 2024 were $326.5 million, down 4.9% from 2023, indicating slower recovery in revenue compared to previous years.
Challenges in U.S. and International Foodservice
U.S. foodservice net revenues decreased 2.1% in Q4 2024, and international retail net revenues decreased by 1.7%, reflecting challenges in these segments.
Suspension of Operations in China
The company decided to suspend operational activities in China as part of cost-cutting measures, impacting their international presence.
Unfavorable Foreign Exchange Impact
Unfavorable changes in foreign currency exchange rates negatively affected net revenue per pound and gross profit.
Company Guidance
In the Beyond Meat fourth quarter and full year 2024 conference call, the company provided guidance for the fiscal year 2025, emphasizing a strategic focus on achieving EBITDA positive operations by the end of 2026. The company reported a full-year net revenue of $326.5 million, a 4.9% decline from 2023, though they noted a slowdown in the rate of decline and a return to growth in the last two quarters. For 2025, Beyond Meat aims for net revenues between $320 million and $335 million, with a gross margin target of approximately 20%, up from 12.8% in 2024. Operating expenses are expected to range from $160 million to $180 million, with capital expenditures projected at $15 million to $20 million. The company also highlighted reductions in operating expenses by over $50 million, excluding a $7.5 million settlement, and a nearly $100 million improvement in adjusted EBITDA for 2024. Key goals include maintaining comparable year-over-year net revenues, improving gross margin, further reducing operating expenses, and strengthening the balance sheet. The company has made strategic decisions, such as suspending operations in China and initiating a reduction in force, to streamline operations and focus on long-term profitability.Beyond Meat Corporate Events
Executive/Board ChangesBusiness Operations and Strategy
Beyond Meat Announces CMO Departure Amid Restructuring
Neutral
Mar 17, 2025
Beyond Meat, Inc. announced the departure of its former Chief Marketing Officer, Akerho ‘AK’ Oghoghomeh, as part of a reduction in force, with his last working day being February 25, 2025. A separation agreement was reached on March 12, 2025, which included a severance package and other benefits, indicating a strategic restructuring effort within the company.
Business Operations and Strategy
Beyond Meat Announces Workforce Reduction and China Exit
Negative
Feb 26, 2025
On February 24, 2025, Beyond Meat’s Board of Directors approved a plan to reduce its workforce in North America and the EU by approximately 44 employees, representing 17% of its global non-production workforce, as part of cost-reduction initiatives. Additionally, the company announced the suspension of its operational activities in China, reducing its workforce there by 95%, to support its long-term goal of achieving EBITDA-positive operations by the end of 2026. These measures are expected to result in significant cost savings and are part of a broader restructuring effort to improve the company’s financial standing.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.