Beyond Meat 2025 Q1 Earnings Misses Targets as Net Income Improves 2.7%

Beyond Meat (BYND) reported its fiscal 2025 Q1 earnings on May 07th, 2025. beyond meat reported a quarterly loss of $0.67 per share against the Zacks Consensus Estimate of a loss of $0.52, marking an earnings surprise of -28.85%. The company's revenue of $68.73 million missed the Zacks Consensus Estimate by 9.39%. Beyond Meat withdrew annual sales forecasts due to economic volatility, anticipating second-quarter revenue between $80 million and $85 million, falling short of analyst expectations. The company continues to focus on cost-saving measures and strategic adjustments aiming for EBITDA-positive operations by year-end 2026.

Revenue

Beyond Meat's total revenue decreased by 9.1% in Q1 2025, amounting to $68.73 million compared to $75.60 million in Q1 2024. The retail segment generated $44.04 million, while the foodservice segment contributed $24.69 million, culminating in net revenues of $68.73 million.

Earnings/Net Income

Beyond Meat narrowed losses to $0.69 per share in Q1 2025, improving from a loss of $0.84 per share in Q1 2024, marking a 17.9% improvement. The net loss also reduced to $-52.92 million, a 2.7% improvement from the $-54.36 million reported in Q1 2024. Despite narrowing losses, the EPS remains below expectations.

Price Action

Beyond Meat's stock edged up 0.79% during the latest trading day, increased 2.42% over the past week, but fell 11.50% month-to-date.

Post-Earnings Price Action Review

Following its revenue drop, Beyond Meat's stock experienced a notable decline, falling approximately 20% within 30 days, driven by market concerns over future growth prospects. The stock remained under pressure for the next 30 days, showing little recovery as the market adjusted its expectations. Over the past five years, BYND's stock has seen several periods of decline with brief recoveries, resulting in an overall downward trend. This decline can be attributed to factors such as diminishing demand, high prices compared to real meat, and increased competition amid fading novelty around plant-based products. Holding bynd shares after a revenue drop often resulted in limited gains, reflecting broader market challenges and company-specific issues.

CEO Commentary

Ethan Brown, President and CEO of Beyond Meat, noted that the first quarter of 2025 experienced a slowdown in consumption, influenced by an uncertain macroeconomic environment that intensified category challenges. Despite disappointing net revenues and gross profit, the Company achieved year-over-year reductions in operating expenses, aided by certain transitory items. In light of these challenges, Brown emphasized a commitment to cost-saving initiatives aimed at achieving run-rate EBITDA-positive operations by the end of 2026. Additionally, he announced the successful acquisition of $100 million in new senior secured financing to bolster the Company's balance sheet.

Guidance

Beyond Meat anticipates a focus on cost-saving measures and strategic adjustments to navigate current market challenges, aiming for EBITDA-positive operations by year-end 2026. The Company is also exploring potential transactions to address existing convertible notes before their maturity in 2027.

Additional News

Beyond Meat recently launched Beyond Chicken Pieces at Kroger stores nationwide, responding to consumer demand for unbreaded plant-based chicken products. This new offering aligns with the company's focus on clean label innovation and features certifications from the American Heart Association and the Clean Label Project. Additionally, Beyond Meat secured a $100 million senior secured financing from Unprocessed Foods, LLC, an affiliate of the Ahimsa Foundation, to support its strategic priorities. The company also partnered with the NBA to release a digital cookbook titled "GO BEYOND THE BUZZER," featuring recipes from NBA athletes using Beyond Meat products, aiming to promote plant-based eating and generate consumer interest.