Beyond Meat Slashes Jobs And Suspends China Operations Amid Mixed Q4 Results; Stock Falls

Beyond Meat Inc BYND shares are trading lower in premarket on Thursday.

The company reported fourth-quarter sales growth of 4% year-on-year to $76.66 million, beating the analyst consensus estimate of $75.31 million.

The increase in net revenues was primarily driven by a 6.3% increase in net revenue per pound, partially offset by a 2.1% decrease in volume of products sold.

U.S. retail channel net revenues increased 5.7% to $33.9 million, U.S. foodservice channel net revenues decreased 2.1% to $10.5 million, International retail declined 1.7% to $13.1 million and International foodservice improved 9.2% to $19.3 million.

Adjusted EPS of $(0.65) missed the consensus estimate of $(0.44).

Gross profit for the quarter was $10.0 million compared to a loss of $83.9 million last year. The gross margin was 13.1%.

The company posted an operating loss of $37.8 million compared to a loss of $160.8 million last year.

Adjusted EBITDA was a loss of $26.0 million versus a loss of $125.1 million in the year-ago period.

The company held $145.6 million in cash and equivalents as of December end. Total outstanding debt was $1.1 billion.

“2024 was a pivotal year for Beyond Meat. We returned to year-over-year net revenue growth in the second half, meaningfully expanded gross margin compared to the prior year, sharply reduced operating expenses, and delivered a significant year-over-year improvement in Adjusted EBITDA,” said President and CEO Ethan Brown.

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As part of its strategy to become EBITDA-positive by 2026, the company is implementing organizational changes and cost-cutting initiatives.

On February 24, 2025, the company’s Board of Directors approved a reduction in force (RIF), cutting 44 positions in North America and the EU.

This move affects around 17% of the non-production workforce globally, which translates to approximately 6% of the company’s entire global workforce.

Beyond estimates that the 2025 RIF will come with one-time costs of $1.0 million to $1.5 million, mostly covering severance packages, benefits, and other related expenses for affected employees.

These adjustments could lead to an estimated $5.5 million to $6.5 million in reduced cash compensation operating expenses in 2025.

Also, the Board approved a plan to suspend the company’s current operational activities in China, which are estimated to cease by the end of the second quarter of 2025.

As part of this plan, Beyond is reducing its workforce in China by approximately 20 employees and incur one-time cash charges of approximately $0.5 million to $1.0 million.

Outlook 2025: Beyond Meat sees net revenues of $320 million – $335 million (estimate: $337.56 million). Gross margin of about 20%.

The company expects operating expenses of $160 million – $180 million and capital expenditures of $15 million – $20 million.

Price Action: BYND shares are trading lower by 4.78% at $3.39 in premarket at last check Thursday.

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