Beyond Meat® Reports Fourth Quarter and Full Year 2024 Financial Results

Company achieves second consecutive quarter of year-over-year net revenue growth, meaningful year-over-year gross margin expansion and sizable reduction in operating expenses across 2024

Company provides full year 2025 outlook

Company announces further restructuring initiatives, including a reduction-in-force and suspension of operational activities in China, as it targets EBITDA-positive run-rate by the end of 2026

EL SEGUNDO, Calif., Feb. 26, 2025 (GLOBE NEWSWIRE) -- Beyond Meat, Inc. (NASDAQ: BYND) ("Beyond Meat” or "the Company”), a leader in plant-based meat, today reported financial results for its fourth quarter and full year ended December 31, 2024.

Fourth Quarter 2024 Financial Highlights¹

• Net revenues were $76.7 million, an increase of 4.0% year-over-year.
• Gross profit was $10.0 million, or gross margin of 13.1%, compared to a loss of $83.9 million, or gross margin of -113.8%, in the year-ago period.
• Loss from operations was $37.8 million, or operating margin of -49.3%, compared to loss from operations of $160.8 million, or operating margin of -218.2%, in the year-ago period.
• Net loss was $44.9 million, or $0.65 per common share, compared to net loss of $155.1 million, or $2.40 per common share, in the year-ago period.
• Adjusted EBITDA was a loss of $26.0 million, or -33.9% of net revenues, compared to an Adjusted EBITDA loss of $125.1 million, or -169.9% of net revenues, in the year-ago period.

Full Year 2024 Financial Highlights¹

• Net revenues were $326.5 million, a decrease of 4.9% year-over-year.
• Gross profit was $41.7 million, or gross margin of 12.8%, compared to a loss of $82.7 million, or gross margin of -24.1%, in the year-ago period.
• Loss from operations was $156.1 million, or operating margin of -47.8%, compared to loss from operations of $341.9 million, or operating margin of -99.6%, in the year-ago period.
  • Adjusted loss from operations was $148.6 million, or adjusted operating margin of -45.5%, reflecting the exclusion of a $7.5 million accrual related to a consumer class action settlement.
• Net loss was $160.3 million, or $2.43 per common share, compared to net loss of $338.1 million, or $5.26 per common share, in the year-ago period.
  • Adjusted net loss was $152.8 million, or $2.31 per diluted common share, reflecting the exclusion of a $7.5 million accrual related to a consumer class action settlement.
• Adjusted EBITDA was a loss of $101.7 million, or -31.1% of net revenues, compared to an Adjusted EBITDA loss of $269.2 million, or -78.4% of net revenues, in the year-ago period.

Beyond Meat President and CEO Ethan Brown commented, "2024 was a pivotal year for Beyond Meat. We returned to year-over-year net revenue growth in the second half, meaningfully expanded gross margin compared to the prior year, sharply reduced operating expenses, and delivered a significant year-over-year improvement in Adjusted EBITDA.”

Brown continued, "In 2025 we are pursuing four main goals. One, we plan to produce comparable year-over-year top line net revenues as we focus on sustainable operations. Two, we aim to improve gross margin to approximately 20%, with the longer-term goal of ultimately exceeding a gross margin of 30%. Three, we plan to further reduce our operating expenses over the two-year period 2025 and 2026 in an effort to position the business for run-rate EBITDA-positive operations by the end of 2026. Four, we intend to strengthen our balance sheet to improve liquidity and optimize our capital structure. We are pursuing these four measures with considerable confidence in the long-term growth of the global plant-based meat industry and our leadership position therein.”

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¹ This release includes references to non-GAAP financial measures. Refer to "Non-GAAP Financial Measures” later in this release for the definitions of the non-GAAP financial measures presented and a reconciliation of these measures to their closest comparable GAAP measures.

2025 Reduction-in-Force

With the objective of positioning the Company for run-rate EBITDA-positive operations by the end of 2026, the Company is implementing certain organizational changes and further cost-reduction measures intended to strengthen its financial profile and support its long-term objectives. On February 24, 2025, the Board of Directors of the Company (the "Board”) approved a plan to reduce the Company's current workforce in North America and the EU by approximately 44 employees, representing approximately 17% of the Company's global non-production workforce (or approximately 6% of the Company's total global workforce) (the "2025 RIF”). This decision was based on cost-reduction initiatives intended to reduce operating expenses.

The Company currently estimates that it will incur one-time cash charges of approximately $1.0 million to $1.5 million in connection with the 2025 RIF, primarily consisting of severance payments, employee benefits and related costs, in all cases, provided to departing employees. The Company expects that the majority of these charges will be incurred in the first quarter of 2025, subject to applicable legal requirements, which may delay the time these charges will be incurred beyond the end of the first quarter of 2025. The calculation of charges the Company estimates it will incur are subject to uncertainties and based on a number of assumptions, including applicable legal requirements; the actual charges incurred may differ from the estimate disclosed above.

In aggregate, the 2025 RIF, combined with the elimination of certain open positions and changes to the executive leadership team, is expected to result in approximately $5.5 million to $6.5 million in cash compensation operating expense savings in 2025, and an additional approximately $1.0 million to $1.5 million in non-cash savings in 2025 related to previously granted, unvested stock-based compensation that would have vested in 2025.

Suspension of Operational Activities in China

In addition, as part of the Company's continued review of its global operations (the "Global Operations Review”), on February 24, 2025, the Board approved a plan to suspend the Company's current operational activities in China, which are estimated to cease by the end of the second quarter of 2025. As part of this plan, the Company is reducing its workforce in China by approximately 20 employees, representing approximately 95% of the Company's China workforce (or approximately 3% of the Company's total global workforce) (the "China RIF”). The decision was based on cost-reduction initiatives intended to reduce operating expenses.

In connection with the suspension of its current operational activities in China, including the China RIF, the Company currently estimates that it will incur one-time cash charges of approximately $0.5 million to $1.0 million, primarily consisting of severance payments, employee benefits and related costs, in all cases, provided to departing employees, and contract termination costs. The Company expects that the majority of these charges will be incurred in the first quarter of 2025, subject to applicable legal requirements, which may delay the time these charges will be incurred beyond the first quarter of 2025. In aggregate, the China RIF is expected to result in approximately $0.5 million to $1.0 million in cash compensation operating expense savings in 2025.

In addition, the Company currently estimates that it will incur one-time non-cash charges of approximately $12.0 million to $17.0 million, primarily related to accelerated depreciation and impairment charges and other write-downs on certain fixed assets in China. The Company expects that the majority of these charges will be incurred in the first quarter of 2025. The calculation of the charges the Company estimates it will incur are subject to uncertainties and based on a number of assumptions, including applicable legal requirements and asset disposition plans; the actual charges incurred may differ from the estimates disclosed above.

2025 Outlook

Based on management's best assessment of the environment today, the Company is providing the following outlook for the full year 2025:

• Net revenues are expected to be in the range of $320 million to $335 million, with first quarter net revenues expected to be comparable to net revenues in the first quarter of 2024.
• Gross margin is expected to be approximately 20%.
• Operating expenses are expected to be in the range of $160 million to $180 million.
• Capital expenditures are expected to be in the range of $15 million to $20 million.

Fourth Quarter 2024

Net revenues increased 4.0% to $76.7 million in the fourth quarter of 2024, compared to $73.7 million in the year-ago period. The increase in net revenues was primarily driven by a 6.3% increase in net revenue per pound, partially offset by a 2.1% decrease in volume of products sold. The increase in net revenue per pound was primarily driven by lower trade discounts and price increases of certain of our products, partially offset by changes in product sales mix and unfavorable changes in foreign currency exchange rates. The decrease in volume of products sold was primarily driven by weak category demand and price elasticity effects in the U.S. retail channel, and by lower sales of ground beef and chicken products in the international retail channel.

U.S. retail channel net revenues increased 5.7% to $33.9 million in the fourth quarter of 2024, compared to $32.1 million in the year-ago period, primarily due to a 10.6% increase in net revenue per pound, partially offset by a 4.5% decrease in volume of products sold, primarily reflecting weak category demand and price elasticity effects. The increase in net revenue per pound was primarily driven by lower trade discounts, price increases of certain of our products and changes in product sales mix.

U.S. foodservice channel net revenues decreased 2.1% to $10.5 million in the fourth quarter of 2024, compared to $10.7 million in the year-ago period, primarily due to an 11.0% decrease in volume of products sold, primarily reflecting lower burger sales to a large Quick Service Restaurant ("QSR”) customer, partially offset by a 10.0% increase in net revenue per pound. The increase in net revenue per pound was primarily driven by price increases of certain of our products and lower trade discounts, partially offset by changes in product sales mix.

International retail channel net revenues decreased 1.7% to $13.1 million in the fourth quarter of 2024, compared to $13.3 million in the year-ago period, primarily due to a 10.4% decrease in volume of products sold, primarily reflecting lower sales of ground beef and chicken products in the EU, partially offset by a 9.6% increase in net revenue per pound. The increase in net revenue per pound was primarily driven by lower trade discounts and changes in product sales mix, partially offset by unfavorable changes in foreign currency exchange rates and price decreases of certain of our products.

International foodservice channel net revenues increased 9.2% to $19.3 million in the fourth quarter of 2024, compared to $17.6 million in the year-ago period, primarily due to an 8.9% increase in volume of products sold, primarily reflecting increased sales of chicken products to a large QSR customer in the EU, and a 0.3% increase in net revenue per pound. The increase in net revenue per pound primarily reflected lower trade discounts and price increases of certain of our products, partially offset by changes in product sales mix and unfavorable changes in foreign currency exchange rates.

Net revenues by channel (unaudited):

The following tables present the Company's net revenues by channel for the periods presented:

Volume of products sold by channel (unaudited):

The following table presents consolidated volume of the Company's products sold in pounds for the periods presented: