Beyond Meat (NASDAQ:BYND) Releases Earnings Results, Misses Estimates By $0.24 EPS

Beyond Meat (NASDAQ:BYND) issued its quarterly earnings results on Wednesday. The company reported ($2.21) earnings per share for the quarter, missing analysts’ consensus estimates of ($1.97) by ($0.24), FiscalAI reports. The company had revenue of $64.53 million during the quarter, compared to analysts’ expectations of $62.00 million. Beyond Meat had a negative return on equity of 100.55% and a net margin of 75.40%.

Here are the key takeaways from Beyond Meat’s conference call:

• Revenue fell 8.1% year over year to $64.5 million, with weakness in U.S. retail and food service and international food service. Q4 revenue guidance of $54 million–$59 million implies a further sequential decline.
• Gross margin rose to 19.3% from 7.4% a year ago, its highest level in five years, while COGS per pound fell 10.1% to a five-year low of $3.90. Management said efficiency gains are progress toward its longer-term goal of margins above 30%.
• The adjusted EBITDA loss narrowed to $24.6 million from $33.5 million, and operating cash use for the first nine months fell to $37.3 million from $101.2 million a year earlier. The company also exchanged $15 million of 2027 notes for shares, reducing debt but diluting shareholders.
• Results included a $57.1 million non-cash asset impairment and a $20.8 million accelerated-rent charge tied to a partial lease termination. Management expects restructuring and footprint reductions to support future savings, but said operating expenses still need to come down substantially.
• International retail revenue grew 13.3% for a third consecutive quarter, led by Europe. Beyond also cited early traction for Beyond Steak Filet and growth in its Immerse beverage line, though it said the adjacent-category numbers remain small.

Beyond Meat Stock Performance

Beyond Meat stock traded down $0.12 during mid-day trading on Wednesday, hitting $7.15. The company’s stock had a trading volume of 1,984,329 shares, compared to its average volume of 960,490. The firm’s 50 day moving average is $9.16 and its 200 day moving average is $18.39. The company has a quick ratio of 2.07, a current ratio of 2.63 and a debt-to-equity ratio of 6.57. Beyond Meat has a 52-week low of $6.49 and a 52-week high of $46.80.

Analyst Upgrades and Downgrades

BYND has been the subject of several recent analyst reports. Wall Street Zen upgraded shares of Beyond Meat from a “strong sell” rating to a “sell” rating in a report on Sunday, September 13th. Barclays restated an “underweight” rating and set a $10.00 price target (up from $0.50) on shares of Beyond Meat in a report on Monday, August 17th. Finally, Weiss Ratings restated a “sell (d)” rating on shares of Beyond Meat in a research report on Friday, October 2nd. Two investment analysts have rated the stock with a Hold rating and three have issued a Sell rating to the stock. Based on data from MarketBeat, the company currently has a consensus rating of “Strong Sell” and an average price target of $23.33.

About Beyond Meat

Beyond Meat, Inc develops, manufactures and markets plant-based meat products designed to replicate the taste, texture and nutritional characteristics of animal-based meat. Its product portfolio has included plant-based beef, chicken and sausage alternatives, such as burgers, ground meat, breakfast sausage and breaded chicken products.

The company sells its products through grocery and retail outlets, restaurants, foodservice distributors and other commercial channels. Beyond Meat has served customers in the United States and international markets, with products available in various countries across North America, Europe and Asia-Pacific through retail and foodservice partnerships.

Founded in 2009 by Ethan Brown, Beyond Meat is headquartered in El Segundo, California.