• Full Year 2024 Net Revenues: $326.5 million, down 4.9% compared to 2023.
• Q4 2024 Net Revenues: $76.7 million, a 4% increase year over year.
• Full Year 2024 Gross Margin: 12.8%.
• Q4 2024 Gross Margin: 13.1%, up from negative 113.8% in the year-ago period.
• Operating Expenses Q4 2024: $47.8 million, a reduction from $76.9 million in the year-ago period.
• Net Loss Q4 2024: $44.9 million, compared to $155.1 million in the year-ago period.
• Adjusted EBITDA Q4 2024: Loss of $26 million, compared to a loss of $125.1 million in the year-ago period.
• Cash and Cash Equivalents: $145.6 million as of December 31, 2024.
• Total Outstanding Debt: $1.1 billion as of December 31, 2024.
• Capital Expenditures Full Year 2024: $11 million.
• 2025 Revenue Guidance: Expected to be in the range of $320 million to $335 million.
• 2025 Gross Margin Guidance: Approximately 20%.
• 2025 Operating Expenses Guidance: Expected to be in the range of $160 million to $180 million.

• Warning! GuruFocus has detected 7 Warning Signs with BYND.

Release Date: February 26, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Beyond Meat Inc (NASDAQ:BYND) achieved two consecutive quarters of year-over-year net revenue growth after more than two years of declining sales.
• The company launched new products, including Beyond 4, Sun sausage line, and an extension of the Beyondsate platform, which received accreditations from the American Heart Association and American Diabetes Association.
• Operating expenses were reduced by over $50 million in 2024, excluding a $7.5 million settlement.
• Gross margin improved to 13.1% in Q4 2024, up substantially year-over-year.
• International expansion continues with new product launches in France and other European markets, including partnerships with McDonald's and other QSRs.

Negative Points

• Despite improvements, the full-year net revenues for 2024 were down 4.9% compared to 2023.
• Gross margin for the full year was lower than expected at 12.8%, impacted by lower-than-expected net revenue per pound and unfavorable foreign currency exchange rates.
• US Foodservice net revenues decreased by 2.1% in Q4 2024, primarily due to lower burger sales to a large QSR customer.
• Operating expenses, although reduced, still amounted to $47.8 million in Q4 2024.
• The company announced a reduction in force and suspension of operational activities in China to further reduce operating expenses.

Q & A Highlights

Q: Can you explain the consumer perception and market dynamics, particularly in the US retail sector, and how you've managed to increase price points without significant volume impact? A: Ethan Brown, CEO, explained that Beyond Meat has focused on providing clean and simple products that consumers are willing to pay more for. The company has seen positive elasticity in the US retail sector, with a 5.7% increase in net revenue and only a 4.5% decrease in volume, indicating that their strategy is working despite ongoing misinformation about their products.

Q: Regarding the guidance for flat top-line growth, how does the suspension of operations in China impact this, and is the suspension temporary? A: Ethan Brown, CEO, stated that the guidance reflects a focus on achieving EBITDA-positive operations rather than short-term revenue growth. The suspension in China is part of this strategy, and while they don't break out specific geographic performance, the overall guidance is conservative to prioritize margin and EBITDA optimization.

Q: How has the core consumer of Beyond Meat evolved, and what changes have you observed in demographics or consumer behavior? A: Ethan Brown, CEO, noted that the core consumer is increasingly health-oriented and educated, able to see through misinformation about plant-based products. Despite challenges, there remains strong interest in Beyond Meat, and the company is focusing on health-related messaging and partnerships to expand its consumer base.

Q: Can you elaborate on the outlook for gross margin improvement in 2025 and the major drivers behind it? A: Ethan Brown, CEO, and Lubi Kutua, CFO, highlighted that the company expects to benefit from price increases, network consolidation, and production efficiencies. They are investing in automation and optimizing their manufacturing processes, which should support the projected gross margin improvement to approximately 20%.

Q: What is the status of your efforts to improve liquidity and address capital structure, particularly regarding the convertible debt maturing in two years? A: Lubi Kutua, CFO, mentioned that Beyond Meat is evaluating alternatives to improve liquidity and optimize its capital structure. While they have added liquidity through their ATM program, they are continuing to explore options and will provide updates when appropriate.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.