Plant-based protein company Beyond Meat (NASDAQ:BYND) announced better-than-expected revenue in Q4 CY2024, with sales up 4% year on year to $76.66 million. On the other hand, the company’s full-year revenue guidance of $327.5 million at the midpoint came in 1.3% below analysts’ estimates. Its non-GAAP loss of $0.65 per share was 44.3% below analysts’ consensus estimates.
Is now the time to buy Beyond Meat? Find out by accessing our full research report, it’s free.
Beyond Meat (BYND) Q4 CY2024 Highlights:
- Revenue: $76.66 million vs analyst estimates of $75.24 million (4% year-on-year growth, 1.9% beat)
- Adjusted EPS: -$0.65 vs analyst expectations of -$0.45 (44.3% miss)
- Adjusted EBITDA: -$26 million vs analyst estimates of -$19.01 million (-33.9% margin, 36.7% miss)
- Management’s revenue guidance for the upcoming financial year 2025 is $327.5 million at the midpoint, missing analyst estimates by 1.3% and implying 0.3% growth (vs -3.8% in FY2024)
- Operating Margin: -49.3%, up from -218% in the same quarter last year
- Free Cash Flow was -$35.43 million compared to -$30.54 million in the same quarter last year
- Sales Volumes fell 10.3% year on year (8% in the same quarter last year)
- Market Capitalization: $242.6 million
Beyond Meat President and CEO Ethan Brown commented, “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.”
Company Overview
A pioneer at the forefront of the plant-based protein revolution, Beyond Meat (NASDAQ:BYND) is a food company specializing in alternatives to traditional meat products.
Perishable Food
The perishable food industry is diverse, encompassing large-scale producers and distributors to specialty and artisanal brands. These companies sell produce, dairy products, meats, and baked goods and have become integral to serving modern American consumers who prioritize freshness, quality, and nutritional value. Investing in perishable food stocks presents both opportunities and challenges. While the perishable nature of products can introduce risks related to supply chain management and shelf life, it also creates a constant demand driven by the necessity for fresh food. Companies that can efficiently manage inventory, distribution, and quality control are well-positioned to thrive in this competitive market. Navigating the perishable food industry requires adherence to strict food safety standards, regulations, and labeling requirements.
Sales Growth
Reviewing a company’s long-term sales performance reveals insights into its quality. Any business can have short-term success, but a top-tier one grows for years.
With $326.5 million in revenue over the past 12 months, Beyond Meat is a small consumer staples company, which sometimes brings disadvantages compared to larger competitors benefiting from economies of scale and negotiating leverage with retailers.
As you can see below, Beyond Meat’s demand was weak over the last three years. Its sales fell by 11.1% annually as consumers bought less of its products.
This quarter, Beyond Meat reported modest year-on-year revenue growth of 4% but beat Wall Street’s estimates by 1.9%.
Looking ahead, sell-side analysts expect revenue to grow 2.3% over the next 12 months. While this projection suggests its newer products will catalyze better top-line performance, it is still below the sector average.
Today’s young investors won’t have read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next.
Volume Growth
Revenue growth can be broken down into changes in price and volume (the number of units sold). While both are important, volume is the lifeblood of a successful staples business as there’s a ceiling to what consumers will pay for everyday goods; they can always trade down to non-branded products if the branded versions are too expensive.
Beyond Meat’s average quarterly sales volumes have shrunk by 9.2% over the last two years. This decrease isn’t ideal because the quantity demanded for consumer staples products is typically stable. 
In Beyond Meat’s Q4 2024, sales volumes dropped 10.3% year on year. This result represents a further deceleration from its historical levels, showing the business is struggling to move its products.
Key Takeaways from Beyond Meat’s Q4 Results
It was encouraging to see Beyond Meat beat analysts’ revenue expectations this quarter. On the other hand, its EBITDA missed significantly and its gross margin fell short of Wall Street’s estimates. Adding to the disappointment was guidance, with full-year revenue guidance coming in below expectations. Overall, this quarter could have been better. The stock traded down 4.8% to $3.38 immediately after reporting.
Beyond Meat’s latest earnings report disappointed. One quarter doesn’t define a company’s quality, so let’s explore whether the stock is a buy at the current price. What happened in the latest quarter matters, but not as much as longer-term business quality and valuation, when deciding whether to invest in this stock. We cover that in our actionable full research report which you can read here, it’s free.
