NEWARK, Del:, Feb. 05, 2025 (GLOBE NEWSWIRE) -- The global healthy foods market is projected to reach USD 897.0 billion by 2025 and is expected to expand at a CAGR of 9.7%, reaching USD 2,264.1 billion by 2035. The healthy foods market includes food and beverage products that offer nutritional benefits beyond basic sustenance, promoting overall health and well-being. These products are often organic, natural, free from artificial additives, and rich in essential nutrients such as vitamins, minerals, fiber, ...

Stock Performance - Beyond Meat shares fell 24.5% in December, contributing to a 98% decline from its all-time highs [1] - The stock is heavily shorted, with an estimated short interest of close to 50% [4] Financial Performance - Revenue reached $450 million in 2022 but has since shrunk due to fading hype and backlash against its ingredients list [2] - Revenue was up slightly last quarter but remains significantly down compared to its all-time high [3] - The company has never generated a profit and continues to burn over $100 million in free cash flow annually [3][5] - Gross margin is weak at just 17.7% [5] Market Position and Challenges - Beyond Meat aimed to persuade meat eaters to switch to plant-based alternatives but has struggled as interest in plant-based meat wanes [2][4] - The company has made some progress in reducing losses but still faces stagnating revenue and negative free cash flow [3][5] Investment Outlook - Despite being a leading brand in its space with a market cap of $250 million, the company's inability to generate profit and weak growth prospects make a turnaround unlikely [5][6] - The stock is not recommended for investment due to its persistent losses and lack of value generation for shareholders [6]

Industry Overview - The growing popularity of protein-rich diets is driving growth for meat companies, with a notable increase in demand for plant-based meat alternatives as consumers prefer healthier options [2] - Industry experts believe that plant-based protein could significantly disrupt the traditional meat industry, positioning itself as a strong competitor in the broader protein market [2] Earnings Outlook - The industry's positioning in the top 50% of Zacks-ranked industries reflects a positive earnings outlook for constituent companies, with analysts gaining confidence in earnings growth potential [4][10] - The Zacks Industry Rank indicates strong near-term prospects, with the top 50% of Zacks-ranked industries outperforming the bottom 50% by a factor of more than 2 to 1 [10] Performance Metrics - The industry has risen 14.7% over the past year, outperforming the broader sector's increase of 2.1% and trailing behind the S&P 500's surge of 25.6% [12][25] - The industry is currently trading at a forward 12-month price-to-earnings (P/E) ratio of 15.17X, compared to the S&P 500's 22.21X and the sector's 16.99X [13] Major Companies - Tyson Foods, Inc. (TSN) has seen its earnings per share (EPS) estimate rise from $3.26 to $3.51 over the past 60 days, with shares rallying 11.3% in the past year [15][27] - Pilgrim's Pride Corporation (PPC) has a current fiscal year EPS estimate increase from $4.79 to $5.12, with shares surging 71% over the past year [29] - Beyond Meat, Inc. (BYND) has seen its EPS estimate improve from a loss of $2.12 to a loss of $2.09, although shares have declined 60.4% in the past year [31] Strategic Trends - Companies in the meat industry are diversifying product offerings and executing strategic growth initiatives, including mergers, acquisitions, and capacity expansions [22] - Investments in automation and advanced technology are being made to enhance production capabilities and streamline operations [22] - The industry's earnings estimates for the current and next fiscal year have increased by 3.3% and 0.4%, respectively [24]

EL SEGUNDO, Calif., Dec. 20, 2024 (GLOBE NEWSWIRE) -- With a mission to positively impact human health, climate change, constraints on natural resources and animal welfare, Beyond Meat, Inc. (NASDAQ: BYND), a leader in plant-based meat, today released its 2023 ESG Report and announced its Beyond Steak life cycle assessment (LCA) study. Beyond Meat’s 2023 ESG Report covers topics such as health and nutrition, human capital, governance and climate management. The company has expanded its disclosures on clima ...

The allure of quick riches often leads investors down unpredictable and volatile paths. While offering the potential for rapid gains, these investments also carry substantial risk. The biggest risk? A dramatic and permanent decline in stock price due to unmet expectations. Get Beyond Meat alerts:Understanding the Drivers of Overvaluation Before examining specific cases, it's crucial to understand the factors that can contribute to inflated market expectations. Overly optimistic projections by company leader ...

Sometimes, good ideas fail at being good businesses, and tough economic times expose that harsh reality quicker than others. Amid sky-high stock markets, we have to be careful to prune these names out of our portfolios.With combined experience of covering technology companies on Wall Street and working in Silicon Valley, and serving as an outside adviser to several seed-round startups, Gary Alexander has exposure to many of the themes shaping the industry today. He has been a regular contributor on Seeking ...

Following a successful initial launch, Beyond Meat’s healthy, flavor-forward plant-based links are debuting at Whole Foods Market stores coast-to-coast Beyond Sun Sausage is filled with wholesome ingredients from legumes and vegetables and offers 12g of clean protein per link with 1g of saturated fat, meeting the rigorous nutritional guidelines of the American Heart Association’s Heart-Check program and the American Diabetes Association's Better Choices for Life program EL SEGUNDO, Calif., Nov. 14, 2024 (GL ...

Core Insights - Beyond Meat reported its first quarter of revenue growth in three years, with a 7.6% increase to $81 million, slightly above estimates of $80.7 million [2] - The company achieved a positive gross profit of $14.3 million, recovering from a gross loss of $7.3 million, driven by higher prices [3] - Despite improvements, Beyond Meat continues to face significant losses, with an operating loss of $30.9 million and a net loss of $0.41 per share, although these figures are better than the previous year's losses [3][5] Revenue and Guidance - The U.S. market saw a solid revenue growth of 14.9%, but a decline in international food service revenue negatively impacted overall results [2] - Beyond Meat lowered its full-year revenue guidance from a range of $320 million-$340 million to $320 million-$330 million, which is below the consensus estimate of $328.6 million [4][5] - The company anticipates gross margins in the mid-teens, consistent with third-quarter performance [4] Management Commentary - CEO Ethan Brown expressed satisfaction with the return to growth in net revenues year-over-year and indicated plans to increase cash reserves by year-end and pursue balance sheet restructuring in 2025 [4]

After the bell on Wednesday, we received third quarter results from Beyond Meat (NASDAQ: BYND ). The plant-based meat company has been one of the stock market's biggest losers in recent years, as sizable revenue growth expectations have not materialized andI am a market enthusiast and part-time trader. I started writing for Seeking Alpha in 2011, and it has been a tremendous opportunity and learning experience. I have been interested in the markets since elementary school, and hope to pursue a career in the ...

Financial Data and Key Metrics Changes - Net revenues for Q3 2024 were $81 million, a 7.6% increase year-over-year from $75.3 million in Q3 2023, marking the first quarter of year-over-year growth since Q1 2022 [26][7] - Gross margin improved to 17.7% compared to a negative gross margin of 9.6% in the same period last year, representing the highest quarterly gross margin since Q3 2021 [31][9] - Operating expenses decreased to $45.2 million, down $17.2 million year-over-year, marking the lowest operating expenses in four years [32][10] - Net loss for Q3 2024 was $26.6 million, significantly reduced from $70.5 million in the year-ago period, with adjusted EBITDA loss narrowing to $19.8 million from $57.5 million [33][32] Business Line Data and Key Metrics Changes - U.S. retail channel net revenues increased 14.6% to $35 million, driven by a 22.6% increase in net revenue per pound, despite a 6.6% decrease in volume sold [27] - U.S. food service channel net revenues rose 15.5% year-over-year to $14.5 million, primarily due to a 7.9% increase in volume sold [28] - National retail channel net revenue increased 17% to $16.6 million, supported by a 10.5% increase in net revenue per pound and a 6% increase in volume sold [29] - International food service channel net revenue decreased 17.2% to $15 million, primarily due to a 22.1% decrease in volume sold [30] Market Data and Key Metrics Changes - The company is seeing encouraging initial sell-through in the German market after meeting shelf life requirements, which had previously limited access to this key market [19] - In France, McDonald's launched a new menu option featuring Beyond Meat products, expanding the company's presence in one of its top European markets [20] Company Strategy and Development Direction - The company aims to enhance efficiency and reduce costs through lean management practices, focusing on product quality and health benefits [11][12] - The launch of the Beyond 4 product line emphasizes health and nutrition, with endorsements from health organizations, contributing to the company's return to growth [12][13] - The company is consolidating its production network to improve logistics and reduce costs, which has already shown benefits in gross margin and cost of goods sold [18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining and improving gross margins due to ongoing cost reduction efforts and pricing strategies [40][41] - The company anticipates that consumption numbers will catch up with shipment numbers, indicating a positive outlook for the fourth quarter [66][67] - Management acknowledged the challenges posed by market competition and consumer perceptions but remains optimistic about the brand's growth trajectory [74][75] Other Important Information - The company plans to bolster its balance sheet through an ATM program and is exploring other options for liquidity enhancement [38] - The full-year revenue outlook for 2024 is projected to be between $320 million and $330 million, with gross margins expected in the mid-teens range [37] Q&A Session Summary Question: Can you provide insights on the gross margin and its sustainability into 2025? - Management expects to maintain and potentially improve gross margins due to ongoing cost reduction initiatives and pricing strategies [40][41] Question: What are the plans for capital raising and balance sheet restructuring? - The company intends to add liquidity to the balance sheet before year-end and is working on a holistic restructuring of the balance sheet [42][44] Question: How do you reconcile the differences between retail shipment and consumption data? - Management noted a mismatch between sell-in and consumption data, expecting consumption numbers to improve in the fourth quarter [49][66] Question: What are the pricing dynamics and their impact on consumer behavior? - Management indicated that higher prices have not dissuaded consumers significantly, with a focus on premium ingredients driving positive elasticity [58][75] Question: What is the outlook for operating expenses and potential increases in 2025? - Management is focused on maintaining low operating expenses while exploring efficiencies, with no immediate plans for significant increases [77] Question: How has the new product innovation impacted sales? - The Beyond 4 platform has positively influenced sales velocity, contributing to overall growth [80]