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Why Beyond Meat Stock Was Tumbling This Week
BYNDBeyond Meat(BYND) The Motley Fool·2025-02-27 19:33

Core Insights - Beyond Meat's stock has declined significantly, down 20.1% for the week following a disappointing earnings report and guidance for 2025 that fell below expectations [1] - The company reported a 4% increase in revenue for Q4, reaching 76.7million,slightlysurpassingestimates[2]Despiterevenuegrowth,BeyondMeatsgrossprofitwasonly76.7 million, slightly surpassing estimates [2] - Despite revenue growth, Beyond Meat's gross profit was only 10 million, representing 13.1% of revenue, indicating ongoing struggles with pricing and cost coverage [3] Financial Performance - The operating loss for Beyond Meat was reported at 37.8million,withapersharelossof37.8 million, with a per-share loss of 0.65, which was worse than the estimated loss of 0.45pershare[3]Thecompanyannouncedlayoffs,cutting90.45 per share [3] - The company announced layoffs, cutting 9% of its workforce, and plans to suspend operations in China [3] Future Outlook - For 2025, Beyond Meat forecasts revenue between 320 million and 335million,indicatingflatgrowthcomparedtothe335 million, indicating flat growth compared to the 326.5 million in 2024, and below the consensus estimate of $331.8 million [4] - The company aims for a gross margin of 20% by 2025, but still faces challenges in achieving bottom-line profitability [5] - The investment thesis for Beyond Meat has weakened, with management needing more innovative strategies beyond cost-cutting to regain market position [6]