Is Beyond Meat (BYND 1.30%) a future feast or a financial famine? Once celebrated as a trailblazer in the plant-based meat revolution, the company has seen its share price shrivel by over 95% since 2021, a blaring distress signal in a young and volatile industry.Digging through Beyond Meat's financials and ongoing attempts to transform the global food landscape reveals a business with deep-seated issues -- from dwindling sales to persistent profitability challenges -- that keep this stock off my shopping li ...

Beyond Meat, Inc. (NASDAQ:BYND) Q3 2023 Earnings Conference Call November 8, 2023 5:00 PM ET Company Participants Paul Shepherd - Investor Relations Ethan Brown - Founder, President and Chief Executive Officer Lubi Kutua - Chief Financial Officer and Treasurer Conference Call Participants Alexia Howard - Bernstein Ben Theurer - Barclays Adam Samuelson - Goldman Sachs Peter Saleh - BTIG Michael Lavery - Piper Sandler Operator Good day and welcome to Beyond Meat, Inc. 2023 Third Quarter Conference Call. [Oper ...

Business Performance - In the first nine months of 2023, the company faced prolonged softening of demand in the plant-based meat category, high inflation, and rising interest rates, which adversely impacted net revenues, gross profit, and cash flows [169]. - In Q3 2023, net revenues decreased by $7.2 million, or 8.7%, compared to the prior year, driven by an 11.6% decrease in net revenue per pound, partially offset by a 3.5% increase in volume sold [200]. - U.S. retail sales in Q3 2023 decreased by $15.7 million, or 33.9%, primarily due to an 18.8% decrease in volume sold and an 18.6% decrease in net revenue per pound [202]. - International net revenues increased by $11.9 million, or 58.7%, in Q3 2023 compared to the prior year, driven by strong performance in retail and foodservice channels [200]. - U.S. retail sales net revenues decreased by $70.1 million, or 36.3%, primarily due to a 30.3% decrease in volume sold and an 8.5% decrease in net revenue per pound [210]. - U.S. foodservice sales net revenues decreased by $14.9 million, or 27.2%, with a 32.0% decrease in volume sold, partially offset by a 7.0% increase in net revenue per pound [211]. Cost Management - The company announced a workforce reduction of approximately 65 employees, representing about 19% of its global non-production workforce, aimed at improving cost structure [172]. - The company expects to incur one-time cash charges of approximately $2.0 million to $2.5 million related to a workforce reduction of about 65 employees, or 19% of the global non-production workforce [192]. - The reduction-in-force is expected to result in cash operating expense savings of approximately $9.5 million to $10.5 million in 2024 [193]. - Selling, general, and administrative expenses for Q3 2023 were $53.3 million, a decrease from $54.5 million in Q3 2022, as part of cost-reduction initiatives [190]. - Research and development expenses for Q3 2023 were $9.1 million, down from $13.4 million in Q3 2022, reflecting a focus on optimizing operating expenses [188]. Strategic Focus - The company is focusing on sustainable long-term growth, including narrowing its commercial focus to certain growth opportunities and prioritizing gross margin expansion and cash generation [171]. - The company is committed to developing a comprehensive ESG program to address environmental and social issues associated with conventional animal protein production [174]. - The company is enhancing its marketing efforts to counter misinformation and drive consumer adoption of its products, focusing on taste, health, and environmental benefits [178]. - The company is investing in localized production and third-party partnerships to improve production costs and increase product availability internationally [178]. - The company is reviewing its global operations to narrow its commercial focus and reduce operating expenses [240][242]. Financial Health - The company incurred a net loss of $183.0 million for the nine months ended September 30, 2023, leading to net cash used in operating activities of $79.3 million [253]. - As of September 30, 2023, the company had $217.5 million in unrestricted cash and cash equivalents, and $15.3 million in restricted cash [249]. - The company achieved cash flow positive operations in Q3 2023 but does not expect to sustain this in Q4 2023 due to various uncertainties [244]. - The company recorded a credit of $(4,000) in restructuring expenses for Q3 2023, compared to $7.0 million in the prior-year period [226][235]. - Total other income, net, for the nine months ended September 30, 2023, was $1.9 million, compared to total other expense of $11.4 million in the prior-year period [230]. Market Presence - As of September 2023, Beyond Meat products were available at approximately 183,000 retail and foodservice outlets in over 75 countries, including about 46,000 U.S. retail outlets unique to Beyond Meat Jerky [168]. - The company had approximately 36,000 international retail outlets and 26,000 international foodservice outlets as of September 2023 [204][205]. - The company is restructuring contracts and operating activities related to Beyond Meat Jerky, which is expected to limit distribution reach and reduce total U.S. retail distribution outlets in subsequent quarters [168]. Research and Development - The company anticipates continued investment in research and development to enhance product formulations and capture a larger share of consumers who typically eat animal-based meats [188]. - Research and development expenses decreased by $4.3 million, or 32.0%, to $9.1 million in Q3 2023, and by $19.0 million, or 38.5%, to $30.3 million in the nine months ended September 30, 2023 [222][223]. Future Outlook - The company is experiencing challenges such as weak demand in the plant-based meat category, macroeconomic headwinds, and increased competitive activity, which may impact future revenue growth [179]. - The company expects to incur costs related to restructuring and may not fully realize the anticipated cost savings from these actions [247]. - The company plans to reduce its workforce by approximately 65 employees, representing about 8% of its total global workforce, with expected one-time cash charges of approximately $2.0 million to $2.5 million [246][247].

Beyond Meat, Inc. (NASDAQ:BYND) Q2 2023 Earnings Conference Call August 7, 2023 7:00 PM ET Company Participants Paul Sheppard - VP, FP&A, IR Ethan Brown - Founder, President & CEO Lubi Kutua - CFO & Treasurer Conference Call Participants Adam Samuelson - Goldman Sachs Peter Galbo - Bank of America Merrill Lynch Ken Goldman - JPMorgan Robert Moskow - TD Cowen Peter Saleh - BTIG Ben Theurer - Barclays Michael Lavery - Piper Sandler Rob Dickerson - Jefferies Andrew Strelzik - BMO Capital Markets Operator ...

Financial Data and Key Metrics Changes - Net revenues for Q1 2023 were $92.2 million, a decrease of 16% year-over-year but a 15% sequential increase from Q4 2022, marking the strongest Q4 to Q1 percentage increase since Q1 2019 [21][14] - Gross profit was $6.2 million, representing 6.7% of net revenues, compared to $0.2 million or 0.2% in the same period last year [23] - Operating expenses decreased by approximately 35% year-over-year to $63.9 million, driven by lower marketing expenses and reduced non-production headcount expenses [25] - Net loss for Q1 2023 was $59 million, or a net loss per share of $0.92, compared to a net loss of $100.5 million or $1.58 per share in the prior year [26] - Adjusted EBITDA loss was $45.8 million, or -49.6% of net revenues, an improvement from a loss of $78.9 million or -72.1% in the year-ago period [26] Business Line Data and Key Metrics Changes - In U.S. retail grocery, the company is focusing on restoring growth in refrigerated offerings, which faced significant year-over-year challenges [9] - The frozen category saw unit sales grow by 20.3% and dollar sales increase by 28.8% sequentially from Q4 2022, and year-over-year, units grew by 31.5% and dollars by 36.4% [11] - International retail net revenues increased by 31%, while international foodservice net revenues jumped by 45% quarter-over-quarter [14] Market Data and Key Metrics Changes - The U.S. plant-based meat sector is experiencing demand weakness due to inflationary pressures driving consumers towards lower-priced animal protein [21] - The company noted a decline in household penetration from 27.8% to 25.5%, attributed to macroeconomic factors and increased competition in the plant-based category [42] Company Strategy and Development Direction - The company is focused on three central tenets: margin expansion and OpEx reduction, cash flow accretive inventory management, and prioritizing near-term growth opportunities [5] - A new generation of burger products is set to launch, emphasizing taste and sensory profile improvements [16] - The company aims to achieve price parity with animal protein while maintaining a focus on total profit dollars rather than percentage margins [68] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving cash flow positive operations in the second half of 2023, emphasizing the importance of inventory management and gross margin improvement [34][36] - The company anticipates a more muted sequential increase in revenues from Q1 to Q2 due to tough year-ago comparisons and ongoing macroeconomic challenges [21] - Management highlighted the importance of clear communication regarding health benefits and taste to re-engage consumers [58] Other Important Information - The company has established a $200 million at-the-market equity facility to bolster cash reserves, indicating a proactive approach to financing [38] - A change in accounting estimate regarding the useful lives of manufacturing equipment positively impacted gross margin guidance for the full year [30][51] Q&A Session All Questions and Answers Question: Can you prioritize the levers to return to cash flow positive in the second half of the year? - Management identified four levers: net revenue, margin, OpEx, and freeing up cash from inventory, with a strong focus on inventory management as a source of cash [34] Question: Can you elaborate on the decision to pursue the $200 million at-the-market equity facility? - The facility is intended to bolster cash reserves and will be used opportunistically, not as an immediate cash need [39] Question: What are the sales trends in U.S. retail and International Foodservice? - U.S. retail faced challenges, while International Foodservice saw significant growth, with no load-in factors affecting the positive results [53][60] Question: How do you balance moves to price parity while protecting near-term margin growth? - The focus is on total profit dollars rather than percent margin, emphasizing volume through strategic pricing programs [68]

Financial Performance - The company incurred net losses of $366.1 million, $182.1 million, and $52.8 million in 2022, 2021, and 2020, respectively, indicating a history of financial losses [130]. - Net revenues for the year ended December 31, 2022, decreased by $45.8 million, or 9.8%, compared to the prior year [146]. - The company faced strategic price reductions that negatively impacted net revenues and gross profit due to higher inventory reserves [144]. - Revenue growth has fluctuated recently, with potential future declines due to macroeconomic issues, increasing competition, and market saturation [183]. - The company anticipates needing to offer more trade and promotion discounts to drive consumer trial, which may negatively impact net revenues and profitability [184]. - The company has approximately $1.3 billion of consolidated indebtedness and other liabilities as of December 31, 2022, which may limit cash flow available for operations [264]. - The company may require additional financing to achieve its goals, which could lead to delays or reductions in product manufacturing and development [277]. - The company’s ability to achieve cash flow positive targets is subject to uncertainties, including cost reductions and revenue targets [148]. Market and Consumer Trends - Consumer discretionary spending has shifted towards lower-priced offerings, impacting demand for plant-based products, which may lead to reduced sales [126]. - Consumer demand for plant-based meat products has recently cooled, negatively impacting all markets and channels in Q4 2022 [140]. - The company may face challenges in responding to changing consumer preferences for plant-based products, which could impact sales and market share [213]. - The company’s long-term growth strategy relies on developing and marketing new products that meet quality standards and consumer preferences [217]. Operational Challenges - The company faces risks related to supply chain disruptions, including limited availability of pea protein and reliance on a small number of suppliers [123]. - The company relies on a limited number of suppliers for raw materials, which poses risks to timely procurement and pricing stability [151]. - The company is implementing cost-reduction initiatives, including workforce reductions, but these may have long-term adverse effects on business performance [131]. - The company announced workforce reductions affecting approximately 4% and 19% of its global workforce on August 3, 2022, and October 14, 2022, respectively [136]. - The company may face challenges in effectively integrating recent acquisitions, which could impact operational efficiency and financial performance [117]. - The company relies on third-party transportation providers for product shipments, which exposes it to risks such as fuel price increases and logistical difficulties [189]. - The company has manufacturing facilities in the U.S., China, and the Netherlands, and any disruption at these facilities could significantly impact its ability to deliver products [173]. Regulatory and Compliance Risks - The company is subject to various regulatory and legal compliance risks, including FDA compliance and potential legal claims [119]. - The company is subject to increased scrutiny regarding its ESG practices, which may lead to higher compliance costs and impact its reputation and financial performance [202]. - The company’s operations are subject to various data privacy laws, including the EU's General Data Protection Regulation and California Consumer Privacy Act, which may require changes in business practices [257]. - Non-compliance with regulations could lead to civil penalties, including fines and product recalls, significantly impacting operating results [298]. - International regulations, particularly in Canada and China, may impose additional compliance costs and affect product labeling and marketing strategies [301]. Competitive Landscape - The company faces intense competition from both animal-based and plant-based meat product manufacturers, which may affect its market position and profitability [221]. - The company operates in a highly competitive environment, with numerous brands competing for limited retail shelf space and consumer attention [222]. - The company faces risks from the consolidation of supermarkets in North America and the European Union, which could lead to reduced brand offerings and increased pressure on pricing [166]. Strategic Initiatives - The company plans to expand its foodservice customer base both in the United States and internationally as part of its growth strategy, which may involve marketing and financial incentives that could negatively impact gross margin [164]. - The company may pursue future acquisitions or investments to achieve strategic objectives, but such activities could disrupt operations and require significant management resources [199]. - The company has entered into multi-year sales agreements for plant-based protein, requiring specified minimum purchases [152]. Financial and Market Risks - The company may face challenges in accessing capital markets due to rising interest rates and higher borrowing costs [279]. - Fluctuations in currency exchange rates could negatively impact the company's earnings, especially as international operations increase [236]. - The company is exposed to risks associated with international operations, including regulatory and economic challenges in China and Europe [235]. - The volatility of the company's stock price is influenced by various factors, including market conditions, competition, and regulatory changes [312]. Intellectual Property and Innovation - The company relies on a combination of legal protections for its intellectual property, but these may not adequately safeguard its competitive advantage [245]. - The company may face challenges in protecting its intellectual property rights internationally, which could hinder market expansion [252]. - The company must continually innovate and successfully introduce new products to maintain growth, as failure to do so may adversely affect its business [216]. Environmental and Social Factors - The company’s operations may be adversely affected by climate change, impacting agricultural productivity and water availability [284]. - The company faces increased legal and financial compliance costs, which may adversely affect net income or increase net loss [295]. - Changes in income tax laws or rates could adversely affect financial results, increasing compliance costs and tax uncertainty [308].

Beyond Meat, Inc. (NASDAQ:BYND) Q4 2022 Earnings Conference Call February 23, 2023 5:00 PM ET Company Participants Teri Witteman - Chief Legal Officer and Secretary Ethan Brown - Founder, President and Chief Executive Officer Lubi Kutua - Chief Financial Officer and Treasurer Conference Call Participants Ken Goldman - JPMorgan Peter Galbo - Bank of America Robert Moskow - Credit Suisse Jon Andersen - William Blair Adam Samuelson - Goldman Sachs Michael Lavery - Piper Sandler Peter Saleh - BTIG Operator Good ...

Beyond Meat, Inc. (NASDAQ:BYND) Q3 2022 Earnings Conference Call November 9, 2022 5:00 PM ET Company Participants Teri Witteman - Chief Legal Officer & Secretary Ethan Brown - Founder, President & Chief Executive Officer Lubi Kutua - Chief Financial Officer and Treasurer Conference Call Participants Alexia Howard - Bernstein Adam Samuelson - Goldman Sachs Robert Moskow - Credit Suisse Cody Ross - UBS Peter Saleh - BTIG Michael Lavery - Piper Sandler Rupesh Parikh - Oppenheimer Peter Galbo - Bank of America ...

Beyond Meat, Inc. (NASDAQ:BYND) Q2 2022 Earnings Conference Call August 4, 2022 5:00 PM ET Company Participants Lubi Kutua - Vice President of Financial Planning & Analysis & Investor Relations Ethan Brown - Founder, President & Chief Executive Officer Phil Hardin - Chief Financial Officer & Treasurer Conference Call Participants Alexia Howard - Bernstein Peter Galbo - Bank of America Adam Samuelson - Goldman Sachs Ben Theurer - Barclays Rupesh Paris - Oppenheimer Robert Moskow - Credit Suisse Ken Goldman - ...

Beyond Meat, Inc. (NASDAQ:BYND) Q1 2022 Results Conference Call May 11, 2022 5:00 PM ET Company Participants Lubi Kutua - Vice President of Financial Planning & Analysis & Investor Relations Ethan Brown - Founder, President & Chief Executive Officer Phil Hardin - Chief Financial Officer & Treasurer Conference Call Participants Peter Galbo - Bank of America Robert Moskow - Credit Suisse Ben Theurer - Barclays Ken Goldman - JPMorgan Alexia Howard - Bernstein Peter Saleh - BTIG Adam Samuelson - Goldman Sachs ...