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Beyond Meat, Inc. (BYND)

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131.51-1.07 (-0.81%)
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132.50 +0.99 (0.75%)
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Open132.33
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Ask132.75 x 1100
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Volume3,478,630
Avg. Volume7,390,276
Market Cap8.21B
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  • GlobeNewswire

    Beyond Meat® Reports Second Quarter 2020 Financial Results

    Net Revenues Increase to a Record $113.3 Million, up 69% Year-Over-Year Retail Channel Net Revenues up 192% Year-Over-Year Driven by Higher Household Penetration and Increased Average Spending per HouseholdEL SEGUNDO, Calif., Aug. 04, 2020 (GLOBE NEWSWIRE) -- Beyond Meat, Inc. (NASDAQ:BYND) (“Beyond Meat” or “the Company”), a leader in plant-based meat, today reported financial results for its second quarter ended June 27, 2020.Second Quarter 2020 Financial Highlights1 * Net revenues were $113.3 million, an increase of 69% year over year. * Gross profit was $33.7 million, or gross margin of 29.7% of net revenues; Adjusted gross profit was $39.6 million, or Adjusted gross margin of 34.9% of net revenues, reflecting exclusion of expenses attributable to COVID-19. * Net loss was $10.2 million, or $0.16 per common share; Adjusted net loss was $1.2 million, or $0.02 per diluted common share, reflecting exclusion of expenses attributable to COVID-19 and early debt extinguishment. * Adjusted EBITDA was $11.7 million, or 10.3% of net revenues.Beyond Meat President and CEO Ethan Brown commented, "I am proud of our record net revenues and growth during a very challenging period. As the toll of the COVID-19 pandemic took hold across the foodservice industry, we repurposed assets and repacked and rerouted products to meet increased consumer activity in the retail aisles. Throughout the quarter, our brand experienced an enviable combination of consumer trends – increasing household penetration; increasing buying levels per household; and strong repeat purchase rates of nearly 50%2, well above the success threshold for consumer packaged goods. Further, we forged ahead with our long-term growth strategy. We invested in expanded operations and sales in the EU and Asia, in innovation, and in targeted pricing measures during this period of high beef prices. Most notable in this regard was the retail introduction of our Cookout Classic™ value pack, which significantly reduced the price of our burgers from nearly 2 times that of conventional beef patties to an approximate 20% premium, on a per pound basis. Though the Cookout Classic™ only reached stores in the last 2 weeks of the second quarter, it accounted for 16 points of the year-over-year volume growth in our U.S. retail business. We look forward to continuing to serve our consumers and customers alike as we all hope for a resolution to the COVID-19 pandemic.”____________ 1 This release includes references to non-GAAP financial measures. Refer to “Non-GAAP Financial Measures” later in this release for the definitions of the non-GAAP financial measures presented and a reconciliation of these measures to their closest comparable GAAP measures. 2 According to SPINS/IRI panel data for the 52-week period ended June 28, 2020. Second Quarter 2020Net revenues increased 69% to $113.3 million in the second quarter of 2020, compared to $67.3 million in the year-ago period. Growth in net revenues was primarily due to an increase in volume sold, partially offset by lower net price per pound driven by the Company’s strategic investments in promotional activity intended to encourage greater consumer trial. Growth in volume sold was driven mainly by increased retail channel sales, resulting from distribution gains both domestically and abroad, higher sales velocities at existing retail customers, and contribution from new product introductions. During the quarter, increased retail channel sales were partially offset by a reduction in foodservice channel sales as a result of the ongoing COVID-19 pandemic.Net revenues by channel (unaudited):  Three Months Ended Change (in thousands) June 27, 2020 June 29, 2019 Amount % U.S.:         Retail $90,040  $30,531  $59,509  194.9 % Foodservice 6,486  16,504  (10,018) (60.7)% U.S. net revenues 96,526  47,035  49,491  105.2 % International:         Retail 9,572  3,589  5,983  166.7 % Foodservice 7,240  16,627  (9,387) (56.5)% International net revenues 16,812  20,216  (3,404) (16.8)% Net revenues $113,338  $67,251  $46,087  68.5 %   Six Months Ended Change (in thousands) June 27, 2020 June 29, 2019 Amount % U.S.:         Retail $139,963   $49,992   $89,971   180.0  % Foodservice 29,117   25,338   3,779   14.9  % U.S. net revenues 169,080   75,330   93,750   124.5  % International:         Retail 15,524   3,707   11,817   318.8  % Foodservice 25,808   28,420   (2,612) (9.2)% International net revenues 41,332   32,127   9,205   28.7  % Net revenues $210,412   $107,457   $102,955   95.8  % Gross profit was $33.7 million, or gross margin of 29.7% of net revenues, in the second quarter of 2020, compared to $22.7 million, or gross margin of 33.8% of net revenues, in the year-ago period. Adjusted gross profit, which excludes $5.9 million of costs associated with product repacking activities due to COVID-19, was $39.6 million, or Adjusted gross margin of 34.9% of net revenues, in the second quarter of 2020, compared to Adjusted gross profit of $22.7 million, or Adjusted gross margin of 33.8% of net revenues, in the year-ago period. The increase in Adjusted gross profit and Adjusted gross margin was primarily due to direct materials and packaging input cost savings, direct labor efficiencies, and an increase in the volume of products sold in the second quarter of 2020 compared to the year-ago period. The $5.9 million in costs associated with product repacking activities in the second quarter of 2020 were driven by the Company’s efforts to repurpose certain foodservice inventory into retail products as a result of the sudden shift in consumer demand related to COVID-19. Following these repacking activities, the Company has rebalanced its mix of finished goods inventory between retail and foodservice products and does not anticipate a need for further repacking activity.Loss from operations in the second quarter of 2020 was $8.2 million compared to income from operations of $2.2 million in the year-ago period. The decrease in income from operations was primarily driven by increased headcount to support the Company’s long-term growth, higher share-based compensation expense, increases in the Company’s marketing initiatives, continued investments in innovation, product donation costs related to the Company’s COVID-19 relief campaign, investments in international expansion initiatives, and higher restructuring expenses, partially offset by the increase in gross profit during the quarter.Net loss was $10.2 million in the second quarter of 2020 compared to net loss of $9.4 million in the year-ago period. Net loss per diluted common share was $0.16 in the second quarter of 2020 compared to net loss per diluted common share of $0.24  in the year-ago-period. During the second quarter of 2020, net loss included $5.9 million of costs associated with the product repacking activities attributable to COVID-19, $1.6 million in product donation costs related to the Company’s COVID-19 relief campaign, and $1.5 million of early debt extinguishment costs associated with the Company’s refinanced credit arrangements. Excluding these costs, Adjusted net loss was $1.2 million in the second quarter of 2020, or $0.02 per diluted common share, compared to Adjusted net income of $2.3 million, or $0.05 per diluted common share, in the year-ago period.Adjusted EBITDA was $11.7 million, or 10.3% of net revenues, in the second quarter of 2020 compared to Adjusted EBITDA of $6.9 million, or 10.2% of net revenues, in the year-ago period.Chief Financial Officer and Treasurer, Mark Nelson commented, “With our robust sales momentum and strong, underlying operating results during the second quarter, we feel confident about Beyond Meat’s potential to seize upon the growth opportunities ahead of us. Although COVID-19 has added complexity to managing our business, we are proud of the way our team has adapted and continues to execute against our long-term strategic plan, closely managing near-term risk while continuing to invest in Beyond Meat’s longer-term future.”Balance Sheet and Cash Flow HighlightsThe Company’s cash and cash equivalents balance was $222.3 million as of June 27, 2020 and total outstanding debt was $50.0 million. Net cash used in operating activities was $44.3 million for the six months ended June 27, 2020, compared to $22.4 million for the prior year period. Capital expenditures totaled $26.0 million for the six months ended June 27, 2020 compared to $7.5 million for the prior year period. The increase in capital expenditures was primarily driven by the Company’s continued investments in production equipment and facilities related to capacity expansion initiatives. On April 22, 2020, the Company announced that it had entered into a new $150 million five-year secured revolving credit facility, which also includes an accordion feature for up to an additional $200 million, replacing its prior credit facilities. Long-term borrowings on the Company’s new revolving credit facility were $50.0 million as of June 27, 2020, as compared to short and long-term borrowings under the Company’s prior credit facilities of $30.6 million as of December 31, 2019.Update on COVID-19 and 2020 OutlookDue to the COVID-19 pandemic, as previously communicated, the Company experienced a meaningful slowdown in its foodservice business as various regions around the world implemented stay-at-home orders, resulting in the closure or limited operations of many of its foodservice customers.  At the same time, the Company experienced an increase in demand by its retail customers as consumers shifted towards more at-home consumption, which more than offset the decline in sales to foodservice customers. While many of the Company’s foodservice customers have reopened, most are operating under various local restrictions and continue to navigate a highly uncertain environment. Given the uncertainty regarding the ultimate duration, magnitude and effects of the COVID-19 pandemic, management remains unable to predict the continuing impact of COVID-19 on its business for the balance of the year with reasonable certainty. As such, the Company’s 2020 outlook, previously provided on February 27, 2020, remains suspended until further notice.Conference Call and WebcastThe Company will host a conference call and webcast to discuss these results with additional comments and details today at 4:30 p.m. Eastern, 1:30 p.m. Pacific. The conference call webcast will be available live over the Internet through the “Investors” section of the Company’s website at www.beyondmeat.com. Investors interested in participating in the live call can dial 866-221-1171 from the U.S. or 270-215-9602 from international locations. A telephone replay will be available approximately two hours after the call concludes through Wednesday, August 19, 2020, by dialing 855-859-2056 from the U.S., or 404-537-3406 from international locations, and entering confirmation code 4658234.About Beyond MeatBeyond Meat, Inc. (NASDAQ: BYND) is one of the fastest growing food companies in the United States, offering a portfolio of revolutionary plant-based meats. Founded in 2009, Beyond Meat has a mission of building meat directly from plants, an innovation that enables consumers to experience the taste, texture and other sensory attributes of popular animal-based meat products while enjoying the nutritional and environmental benefits of eating its plant-based meat products. Beyond Meat’s brand commitment, Eat What You Love™, represents a strong belief that by eating its portfolio of plant-based meats, consumers can enjoy more, not less, of their favorite meals, and by doing so, help address concerns related to resource conservation and animal welfare. Beyond Meat’s portfolio of plant-based proteins were available at approximately 112,000 retail and foodservice outlets in 85 countries worldwide as of June 27, 2020. Visit www.BeyondMeat.com and follow @BeyondMeat, BeyondBurger and GoBeyond on Facebook, Instagram and Twitter.Forward-Looking Statements Certain statements in this release constitute “forward-looking statements" within the meaning of the federal securities laws. These statements are based on management's current opinions, expectations, beliefs, plans, objectives, assumptions and projections regarding financial performance, prospects, future events and future results, including ongoing uncertainty related to the COVID-19 pandemic, including the duration, magnitude and effects of the pandemic and, in particular, the impact to the foodservice channel, growth trends, our international expansion plans, market share, new and existing customers and expense trends, among other matters, and involve known and unknown risks that are difficult to predict. In some cases, you can identify forward-looking statements by the use of words such as “may,” “could,” “expect,” “intend,” “plan,” “seek,” “anticipate,” “believe,” “estimate,” “predict,” “outlook,” “potential,” “continue,” “likely,” “will,” “would” and variations of these terms and similar expressions, or the negative of these terms or similar expressions. These forward-looking statements are only predictions, not historical fact, and involve certain risks and uncertainties, as well as assumptions. Forward-looking statements should not be read as a guarantee of future performance or results, and will not necessarily be accurate indications of the times at, or by which or whether, such performance or results will be achieved. Actual results, levels of activity, performance, achievements and events could differ materially from those stated, anticipated or implied by such forward-looking statements. While Beyond Meat believes that its assumptions are reasonable, it is very difficult to predict the impact of known factors, and, of course, it is impossible to anticipate all factors that could affect actual results. There are many risks and uncertainties that could cause actual results to differ materially from forward-looking statements made herein including, but not limited to, the effects of global outbreaks of pandemics or contagious diseases or fear of such outbreak, such as the recent COVID-19 pandemic, including on our ability to expand in new geographic markets or the timing of such expansion efforts; estimates of our expenses, future revenues, capital requirements and our needs for additional financing; our ability to effectively manage our growth; our estimates of the size of market opportunities; our ability to effectively expand our manufacturing and production capacity; our ability to accurately forecast demand for our products and manage our inventory; our ability to successfully enter new geographic markets, manage our international expansion and comply with any applicable laws and regulations; the effects of increased competition from our market competitors and new market entrants; the success of our marketing initiatives and the ability to grow brand awareness, maintain, protect and enhance our brand, attract and retain new customers and grow our market share; our ability to attract, maintain and effectively expand our relationships with key strategic foodservice partners; our ability to attract and retain our suppliers, distributors, co-manufacturers and customers; our ability to procure sufficient high-quality raw materials to manufacture our products; the availability of pea protein that meets our standards; our ability to diversify the protein sources used for our products; the volatility associated with ingredient and packaging costs; real or perceived quality or health issues with our products or other issues that adversely affect our brand and reputation; changes in the tastes and preferences of our consumers; our ability to accurately predict taste preferences and purchasing habits of consumers in new geographic markets; our ability to accurately predict consumer trends and demand and successfully introduce and commercialize new products and improve existing products; significant disruption in, or breach in security of our information technology systems and resultant interruptions in service and any related impact on our reputation; the attraction and retention of qualified employees and key personnel; the effects of natural or man-made catastrophic events particularly involving our or any of our co‑manufacturers’ manufacturing facilities or our suppliers’ facilities; the impact of marketing campaigns aimed at generating negative publicity regarding our products, brand and plant‑based industry category; the effectiveness of our internal controls; changes in laws and government regulation affecting our business, including Food and Drug Administration governmental regulation and state regulation; changes in laws, regulations or policies of governmental agencies or regulators relating to the labeling or naming of our products; the impact of adverse economic conditions; the financial condition of, and our relationships with our suppliers, co-manufacturers, distributors, retailers and foodservice customers, and their future decisions regarding their relationships with us; the ability of our suppliers and co‑manufacturers to comply with food safety, environmental or other laws and regulations; seasonality; the sufficiency of our cash and cash equivalents to meet our liquidity needs and service our indebtedness; outcomes of legal or administrative proceedings; foreign exchange fluctuations; our, our suppliers’ and our co-manufacturers’ ability to protect our proprietary technology and intellectual property adequately; and the risks discussed under the heading “Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019 and the Company’s Quarterly Report on Form 10-Q for the quarter ended June 27, 2020 to be filed with the SEC, as well as other factors described from time to time in the Company's filings with the SEC. All forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by the cautionary statements set forth above. Such forward-looking statements are made only as of the date of this release. Beyond Meat undertakes no obligation to publicly update or revise any forward-looking statement because of new information, future events, changes in assumptions or otherwise, except as otherwise required by law. If we do update one or more forward-looking statements, no inference should be made that we will make additional updates with respect to those or other forward-looking statements.Non-GAAP Financial MeasuresThe Company refers to certain financial measures that are not recognized under U.S. generally accepted accounting principles (GAAP) in this press release, including: Adjusted gross profit, Adjusted gross margin, Adjusted net (loss) income, Adjusted net (loss) income per diluted common share, Adjusted EBITDA and Adjusted EBITDA as a % of net revenues. See “Non-GAAP Financial Measures” below for additional information and reconciliations of such non-GAAP financial measures.Availability of Information on Beyond Meat’s Website and Social Media ChannelsInvestors and others should note that Beyond Meat routinely announces material information to investors and the marketplace using SEC filings, press releases, public conference calls, webcasts and the Beyond Meat Investor Relations website. We also intend to use certain social media channels as a means of disclosing information about us and our products to consumers, our customers, investors and the public (e.g., @BeyondMeat, BeyondBurger and GoBeyond on Facebook, Instagram and Twitter).  The information posted on social media channels is not incorporated by reference in this press release or in any other report or document we file with the SEC. While not all of the information that the Company posts to the Beyond Meat Investor Relations website or to social media accounts is of a material nature, some information could be deemed to be material. Accordingly, the Company encourages investors, the media, and others interested in Beyond Meat to review the information that it shares at the “Investors” link located at the bottom of the Company’s webpage at https://investors.beyondmeat.com/investor-relations and to sign up for and regularly follow the Company’s social media accounts. Users may automatically receive email alerts and other information about the Company when enrolling an email address by visiting "Request Email Alerts" in the "Investors" section of Beyond Meat’s website at https://investors.beyondmeat.com/investor-relations.ContactsMedia: Shira Zackai 917-715-8522 szackai@beyondmeat.comInvestors:  Katie Turner 646-277-1228 Katie.turner@icrinc.com BEYOND MEAT, INC. Condensed Consolidated Statements of Operations (In thousands, except share and per share data) (unaudited)  Three Months Ended  Six Months Ended   June 27, 2020 June 29, 2019 June 27, 2020 June 29, 2019 Net revenues $113,338   $67,251   $210,412   $107,457   Cost of goods sold 79,687   44,510   139,070   73,945   Gross profit 33,651   22,741   71,342   33,512   Research and development expenses 6,016   4,212   12,210   8,710   Selling, general and administrative expenses 34,292   15,515   61,607   26,692   Restructuring expenses 1,509   847   3,882   1,241   Total operating expenses 41,817   20,574   77,699   36,643   (Loss) income from operations (8,166)  2,167   (6,357)  (3,131)  Other expense, net:         Interest expense (569)  (741)  (1,274)  (1,474)  Remeasurement of warrant liability —   (11,744)  —   (12,503)  Other, net (1,454)  898   (744)  1,039   Total other expense, net (2,023)  (11,587)  (2,018)  (12,938)  Loss before taxes (10,189)  (9,420)  (8,375)  (16,069)  Income tax expense 16   21   15   21   Net loss $(10,205)  $(9,441)  $(8,390)  $(16,090)  Net loss per share available to common stockholders—basic and diluted $(0.16)  $(0.24)  $(0.14)  $(0.69)  Weighted average common shares outstanding—basic and diluted 62,098,861   39,081,359   61,904,360   23,206,203                                         BEYOND MEAT, INC. Condensed Consolidated Balance Sheets (In thousands, except share and per share data) (unaudited)   June 27, 2020 December 31, 2019 Assets     Current assets:     Cash and cash equivalents $222,334   $275,988   Accounts receivable 45,986   40,080   Inventory 143,033   81,596   Prepaid expenses and other current assets 17,990   5,930   Total current assets 429,343   403,594   Property, plant, and equipment, net 70,286   47,474   Operating lease right-of-use assets 23,637   —   Other non-current assets, net 4,552   855   Total assets $527,818   $451,923   Liabilities and Stockholders’ Equity:     Current liabilities:     Accounts payable $51,567   $26,923   Wages payable 2,024   1,768   Accrued bonus 1,416   4,129   Current portion of operating lease liabilities 1,944   —   Accrued expenses and other current liabilities 8,829   3,805   Short-term borrowings under revolving credit facility and bank term loan —   11,000   Current portion of finance lease liabilities 72   72   Total current liabilities 65,852   47,697   Long-term liabilities:     Revolving credit facility $50,000   $—   Operating lease liabilities, net of current portion 21,871   —   Long-term portion of bank term loan, net —   14,637   Equipment loan, net —   4,932   Finance lease obligations and other long-term liabilities 185   567   Total long-term liabilities $72,056   $20,136   Commitments and Contingencies     Stockholders’ equity:     Preferred stock, par value $0.0001 per share—500,000 shares authorized, none issued and outstanding $—   $—   Common stock, par value $0.0001 per share—500,000,000 shares authorized; 62,425,640 and 61,576,494 shares issued and outstanding at June 27, 2020 and December 31, 2019, respectively 6   6   Additional paid-in capital 540,576   526,199   Accumulated deficit (150,505)  (142,115)  Accumulated other comprehensive loss (167)  —   Total stockholders’ equity $389,910   $384,090   Total liabilities and stockholders’ equity $527,818   $451,923                 BEYOND MEAT, INC. Condensed Consolidated Statements of Cash Flows (In thousands) (unaudited)   Six Months Ended   June 27, 2020 June 29, 2019 Cash flows from operating activities:     Net loss $(8,390)  $(16,090)  Adjustments to reconcile net loss to net cash used in operating activities:     Depreciation and amortization 5,855   3,957   Non-cash lease expense 1,186   —   Share-based compensation expense 13,535   2,678   Loss on sale of fixed assets 183   —   Amortization of debt issuance costs 93   78   Loss on extinguishment of debt 1,538   —   Change in preferred and common stock warrant liabilities —   12,503   Net change in operating assets and liabilities:     Accounts receivable (5,907)  (21,762)  Inventories (61,437)  (12,438)  Prepaid expenses and other assets (12,192)  (2,131)  Accounts payable 21,564   9,799   Accrued expenses and other current liabilities 818   1,028   Operating lease liabilities (1,181)  —   Long-term liabilities —   12   Net cash used in operating activities $(44,335)  $(22,366)  Cash flows from investing activities:     Purchases of property, plant and equipment $(26,031)  $(7,502)  Proceeds from sale of fixed assets —   232   Purchases of property, plant and equipment held for sale (2,288)  (3,121)  Payment of security deposits (9)  (487)  Net cash used in investing activities $(28,328)  $(10,878)  Cash flows from financing activities:     Proceeds from issuance of common stock pursuant to the initial public offering, net of issuance costs $—   $255,448   Proceeds from revolving credit facility 50,000   —   Debt issuance costs (1,183)  —   Debt extinguishment costs (1,200)  —   Repayment of revolving credit line (6,000)  —   Repayment of term loan (20,000)  —   Repayment of equipment loan (5,000)  —   Principal payments under finance lease obligations (34)  (21)  Proceeds from exercise of stock options 3,824   533   Payments of minimum withholding taxes on net share settlement of equity awards (1,231)  —   Net cash provided by financing activities $19,176   $255,960             Net (decrease) increase in cash and cash equivalents $(53,487)  $222,716   Effect of exchange rate changes on cash (167)  —   Cash and cash equivalents at the beginning of the period 275,988   54,271   Cash and cash equivalents at the end of the period $222,334   $276,987     Supplemental disclosures of cash flow information:     Cash paid during the period for:     Interest $1,265   $1,445   Taxes $15   $21   Non-cash investing and financing activities:     Non-cash additions to property, plant and equipment $4,499   $1,003   Offering costs, accrued not yet paid $—   $578   Non-cash additions to property, plant and equipment held for sale $—   $646   Operating lease right-of-use assets obtained in exchange for lease liabilities $12,516   $—   Reclassification of warrant liability to additional paid-in capital  in connection with the initial public offering $—   $14,421   Conversion of convertible preferred stock to common stock upon initial public offering $—   $199,540   Note receivable from sale of assets held for sale $5,158   $—       Non-GAAP Financial MeasuresBeyond Meat uses the non-GAAP financial measures set forth below in assessing its operating performance and in its financial communications. Management believes these non-GAAP financial measures provide useful additional information to investors about current trends in the Company's operations and are useful for period-over-period comparisons of operations. In addition, management uses these non-GAAP financial measures to assess operating performance and for business planning measures. These non-GAAP financial measures should not be considered in isolation or as a substitute for the comparable GAAP measures. In addition, these non-GAAP financial measures may not be computed in the same manner as similarly titled measures used by other companies.Adjusted gross profit and Adjusted gross margin Adjusted gross profit is defined as net revenues less cost of goods sold adjusted to exclude, when applicable, costs attributable to COVID-19 activities which are not considered to be part of the Company’s normal business activities. Adjusted gross margin is defined as Adjusted gross profit divided by net revenues.Adjusted gross profit and Adjusted gross margin are presented to provide additional perspective on underlying trends in the Company’s gross profit and gross margin, which we believe is useful supplemental information for investors to be able to gauge and compare the Company’s current business performance from one period to another.Adjusted net (loss) income and Adjusted net (loss) income per diluted common share Adjusted net (loss) income is defined as net (loss) income adjusted to exclude, when applicable, costs attributable to COVID-19 activities, as well as other special items, which are those items deemed not to be reflective of the Company’s ongoing normal business activities. Adjusted net (loss) income per diluted common share is defined as Adjusted net (loss) income divided by the number of diluted common shares outstanding.We consider Adjusted net (loss) income and Adjusted net (loss) income per diluted common share to be indicators of operating performance because excluding special items allows for period-over-period comparisons of our ongoing operations. Adjusted net (loss) income per diluted common share is a performance measure and should not be used as a measure of liquidity.Adjusted EBITDA and Adjusted EBITDA as a % of net revenues Adjusted EBITDA is defined as net (loss) income adjusted to exclude, when applicable, income tax expense (benefit), interest expense, depreciation and amortization expense, restructuring expenses, share-based compensation expense, expenses attributable to COVID-19, remeasurement of our warrant liability, and Other, net, including investment income and foreign currency transaction gains and losses. Adjusted EBITDA as a % of net revenues is defined as Adjusted EBITDA divided by net revenues.We use Adjusted EBITDA and Adjusted EBITDA as a % of net revenues because they are important measures upon which our management assesses our operating performance. We use Adjusted EBITDA and Adjusted EBITDA as a % of net revenues as key performance measures because we believe these measures facilitate internal comparisons of our historical operating performance on a more consistent basis, and we also use these measures for our business planning purposes. In addition, we believe Adjusted EBITDA and Adjusted EBITDA as a % of net revenues are widely used by investors, securities analysts, ratings agencies and other parties in evaluating companies in our industry as a measure of our operational performance.Limitations related to the use of non-GAAP financial measures There are a number of limitations related to the use of Adjusted gross profit, Adjusted gross margin, Adjusted net (loss) income, Adjusted net (loss) income per diluted common share, and Adjusted EBITDA rather than their most directly comparable GAAP measures. Some of these limitations are: * Adjusted gross profit and Adjusted gross margin exclude costs associated with activities deemed to be non-recurring or not part of the Company’s normal business activities, which are subjective determinations made by management and may not actualize as expected; * Adjusted net (loss) income and Adjusted net (loss) income per diluted common share exclude costs associated with activities deemed to be non-recurring or not part of the Company’s normal business activities, which are subjective determinations made by management and may not actualize as expected; * Adjusted EBITDA excludes depreciation and amortization expense and, although these are non-cash expenses, the assets being depreciated may have to be replaced in the future increasing our cash requirements; * Adjusted EBITDA does not reflect interest expense, or the cash required to service our debt, which reduces cash available to us; * Adjusted EBITDA does not reflect income tax payments that reduce cash available to us; * Adjusted EBITDA does not reflect restructuring expenses that reduce cash available to us; * Adjusted EBITDA does not reflect expenses attributable to COVID-19 that reduce cash available to us; * Adjusted EBITDA does not reflect share-based compensation expense and therefore does not include all of our compensation costs; * Adjusted EBITDA does not reflect Other, net, including investment income and foreign currency transaction gains and losses, that may increase or decrease cash available to us; and * other companies, including companies in our industry, may calculate Adjusted EBITDA differently, which reduces its usefulness as a comparative measure.The following tables present the reconciliation of Adjusted gross profit and Adjusted gross margin to their most comparable GAAP measures, gross profit and gross margin, respectively, as reported (unaudited):  Three Months Ended Six Months Ended (in thousands) June 27, 2020 June 29, 2019 June 27, 2020 June 29, 2019 Gross profit, as reported $33,651  $22,741  $71,342  $33,512  Repacking costs attributable to COVID-19 5,915  —  5,915  —  Adjusted gross profit $39,566  $22,741  $77,257  $33,512    Three Months Ended Six Months Ended   June 27, 2020 June 29, 2019 June 27, 2020 June 29, 2019 Gross margin, as reported 29.7% 33.8% 33.9% 31.2% Repacking costs attributable to COVID-19, as a percentage of net revenues 5.2% —% 2.8% —% Adjusted gross margin 34.9% 33.8% 36.7% 31.2%           The following tables present the reconciliation of Adjusted net (loss) income and Adjusted net (loss) income per diluted common share to their most comparable GAAP measures, net (loss) income and net (loss) income per common share available to common stockholders—diluted, respectively, as reported (unaudited):  Three Months Ended Six Months Ended (in thousands) June 27, 2020 June 29, 2019 June 27, 2020 June 29, 2019 Net loss, as reported $(10,205)  $(9,441)  $(8,390)  $(16,090)  Repacking costs attributable to COVID-19 5,915   —   5,915   —   Product donations attributable to COVID-19 relief efforts 1,567   —   2,742   —   Remeasurement of warrant liability —   11,744   —   12,503   Loss on extinguishment of debt 1,538   —   1,538   —   Adjusted net (loss) income $(1,185)  $2,303   $1,805   $(3,587)          Three Months Ended Six Months Ended (in thousands, except share and per share amounts) June 27, 2020 June 29, 2019 June 27, 2020 June 29, 2019 Numerator:         Net loss, as reported $(10,205)  $(9,441)  $(8,390)  $(16,090)  Aggregate non-GAAP adjustments as listed above 9,020   11,744   10,195   12,503   Adjusted net (loss) income used in computing basic and diluted Adjusted net (loss) income per diluted common share $(1,185)  $2,303   $1,805   $(3,587)            Denominator:         Weighted average shares used in computing Adjusted net (loss) income per share, basic 62,098,861   39,081,359   61,904,360   23,206,203   Dilutive effect of shares issuable under options and RSUs —   5,054,823   4,093,396   —   Weighted average shares used in computing adjusted net (loss) income per share, diluted 62,098,861   44,136,182   65,997,756   23,206,203   Adjusted net (loss) income per common share, diluted $(0.02)  $0.05   $0.03   $(0.15)          Three Months Ended Six Months Ended (in thousands) June 27, 2020 June 29, 2019 June 27, 2020 June 29, 2019 Diluted net loss per share, as reported $(0.16)  $(0.24)  $(0.14)  $(0.69)  Repack costs related to COVID-19 0.09   —   0.10   —   Product donations related to COVID-19 relief efforts 0.03   —   0.05   —   Remeasurement of warrant liability —   0.29   —   0.54   Loss on extinguishment of debt 0.02   —   0.02   —   Adjusted net (loss) income per diluted share $(0.02)  $0.05   $0.03   $(0.15)                        The following table presents the reconciliation of Adjusted EBITDA to its most comparable GAAP measure, net loss, as reported (unaudited):  Three Months Ended Six Months Ended (in thousands) June 27, 2020 June 29, 2019 June 27, 2020 June 29, 2019 Net loss, as reported $(10,205)  $(9,441)  $(8,390)  $(16,090)  Income tax expense 16   21   15   21   Interest expense 569   741   1,274   1,474   Depreciation and amortization expense 3,272   2,052   5,855   3,957   Restructuring expenses(1) 1,509   847   3,882   1,241   Share-based compensation expense 7,586   1,823   13,535   2,678   Expenses attributable to COVID-19(2) 7,482   —   8,657   —   Remeasurement of warrant liability —   11,744   —   12,503   Other, net 1,454   (898)  744   (1,039)  Adjusted EBITDA $11,683   $6,889   $25,572   $4,745   Net loss as a % of net revenues (9.0)% (14.0)% (4.0)% (15.0)% Adjusted EBITDA as a % of net revenues 10.3 % 10.2 % 12.2 % 4.4 % ____________(1)Primarily comprised of legal and other expenses associated with the dispute with a co-manufacturer with whom an exclusive supply agreement was terminated in May 2017. (2)Comprised of $5.9 million in repacking costs attributable to COVID-19 and $1.6 million in product donation costs related to the Company’s COVID-19 relief campaign in the three months ended June 27, 2020, and $5.9 million in repacking costs attributable to COVID-19 and $2.8 million in product donation costs related to the Company’s COVID-19 relief campaign in the six months ended June 27, 2020. Expenses attributable to COVID-19 in the six months ended June 27, 2020 include $1.2 million in product donation costs related to the Company’s COVID-19 relief campaign in the first quarter of 2020, which were not previously included in the Company’s Adjusted EBITDA calculation as these were deemed immaterial to the Company’s first quarter 2020 financial results. Given the significant increase in COVID-19-related expenses in the second quarter of 2020, and to facilitate better comparison from period to period, management determined that it was appropriate to recast its previous first quarter 2020 Adjusted EBITDA calculation to include these costs.

  • Beyond Meat® Expands Club Store Distribution with BJ’s Wholesale and Sam’s Club
    GlobeNewswire

    Beyond Meat® Expands Club Store Distribution with BJ’s Wholesale and Sam’s Club

    The company’s Beyond Burger® 8-pack, specifically designed for the club store channel, is designed to increase accessibility through affordability and convenience Beyond Meat Beyond MeatEL SEGUNDO, Calif., Aug. 03, 2020 (GLOBE NEWSWIRE) -- Beyond Meat, Inc. (NASDAQ: BYND), a leader in plant-based meat, is working to increase accessibility to plant-based meat through the development of new sales channels, including club and convenience stores. The company, which offers an 8-pack of its flagship Beyond Burger®, first broke into the club channel last year at Costco. This summer, Beyond Meat added partnerships with BJ’s Wholesale and Sam’s Club, unlocking partnerships with three major club stores. “Having entered all national conventional retailers in the US, we looked for where the white space existed and club stores were the next logical step towards increasing accessibility to plant-based meat among mainstream consumers,” said Chuck Muth, Chief Growth Officer, Beyond Meat. “By offering the Beyond Burger in a larger format, we’re able to provide value to consumers and a more accessible entry point for those looking to try a plant-based option for the first time or increase their adoption of plant-based meat. With the added focus on retail the past few months as well as a shift towards less frequent, stock-up style shopping trips, our distribution in club stores has been especially critical.”Beyond Meat was the first plant-based meat option that Sam’s Club explored via an initial test earlier this year at all locations. Following a strong, positive response from consumers, Sam’s chose to make the Beyond Burger a permanent offering.After seeing a growing interest in plant-based options, BJ’s Wholesale evaluated several options and ultimately chose to offer its members Beyond Meat, a leader in the space.Beyond Meat was the 1 selling brand in refrigerated plant-based meat and owned the top four selling SKUs in all of plant-based meat per­­ the latest 4-week SPINS data ending 6/14/20. Beyond Meat’s club store distribution footprint currently includes the majority of BJ’s Wholesale Club, Costco and Sam’s Club stores across the US.This effort comes on the heels of an exciting year of growth for Beyond Meat, whose portfolio of plant-based proteins were available at approximately 25,000 retail stores across the US as of March 28, 2020 including Kroger, Walmart, Target, Whole Foods Market, Albertsons/Vons/Pavilions, Publix, Wegmans, Sprouts and more.THE BEYOND BURGER The Beyond Burger is designed to look, cook and satisfy like a traditional beef burger but is made from simple, plant-based ingredients without GMOs, soy, gluten or artificially produced ingredients. Beyond Meat’s vision is to be a global protein company capable of serving consumer’s growing demand for delicious, nutritious and sustainable protein. All Beyond Meat products are designed to meet, if not exceed, the nutritional benchmarks of its animal protein equivalent. Compared to an 80/20 beef burger, the Beyond Burger has: * 20g of protein, offering a complete protein source derived from a combination of peas, mung beans and rice * 35% less saturated fat and less total fat * No cholesterol, antibiotics or hormonesAbout Beyond Meat Beyond Meat, Inc. (NASDAQ: BYND) is one of the fastest growing food companies in the United States, offering a portfolio of revolutionary plant-based meats. Founded in 2009, Beyond Meat has a mission of building meat directly from plants, an innovation that enables consumers to experience the taste, texture and other sensory attributes of popular animal-based meat products while enjoying the nutritional and environmental benefits of eating its plant-based meat products. Beyond Meat’s brand commitment, Eat What You Love™, represents a strong belief that by eating its portfolio of plant-based meats, consumers can enjoy more, not less, of their favorite meals, and by doing so, help address concerns related to human health, climate change, resource conservation and animal welfare. Beyond Meat’s portfolio of plant-based proteins were available at approximately 94,000 retail and foodservice outlets in 75 countries worldwide as of March 28, 2020. Visit www.BeyondMeat.com and follow @BeyondMeat, BeyondBurger and GoBeyond on Facebook, Instagram and Twitter.Media Contact Allison Aronoff aaronoff@beyondmeat.comForward Looking StatementsCertain statements in this release constitute “forward-looking statements.” These statements are based on management’s current opinions, expectations, beliefs, plans, objectives, assumptions or projections regarding future events or future results. These forward-looking statements are only predictions, not historical fact, and involve certain risks and uncertainties, as well as assumptions. Actual results, levels of activity, performance, achievements and events could differ materially from those stated, anticipated or implied by such forward-looking statements. While Beyond Meat believes that its assumptions are reasonable, it is very difficult to predict the impact of known factors, and, of course, it is impossible to anticipate all factors that could affect actual results. There are many risks and uncertainties that could cause actual results to differ materially from forward-looking statements made herein including, most prominently, the risks discussed under the heading “Risk Factors” in Beyond Meat’s Form 10-Q for the quarter ended March 28, 2020 filed with the U.S. Securities and Exchange Commission (“SEC”) on May 12, 2020, the Company’s Annual Report on Form 10-K for the year ended December 31, 2019 filed with the SEC on March 19, 2020, as well as other factors described from time to time in Beyond Meat’s filings with the SEC. Such forward-looking statements are made only as of the date of this release. Beyond Meat undertakes no obligation to publicly update or revise any forward-looking statement because of new information, future events or otherwise, except as otherwise required by law. If we do update one or more forward-looking statements, no inference should be made that we will make additional updates with respect to those or other forward-looking statements.A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/3bcdcc9f-6358-4755-8aa1-dcba347da096

  • Beyond Meat® Announces Partnership With the Social Change Fund to Fight Racial Inequality
    GlobeNewswire

    Beyond Meat® Announces Partnership With the Social Change Fund to Fight Racial Inequality

    Beyond Meat teams up with Social Change Fund and Beyond Meat investor and ambassador Chris Paul as part of the company’s commitment to create meaningful change for Black communities Beyond Meat, Inc. Beyond Meat, Inc.EL SEGUNDO, Calif., July 22, 2020 (GLOBE NEWSWIRE) -- Beyond Meat, Inc. (NASDAQ: BYND), a leader in plant-based meat, will be partnering with the newly formed non-profit Social Change Fund to further the company’s commitment to fighting disparities in the Black community through initiatives tied to social justice, education and health equity. The Social Change Fund was created by Chris Paul, Dwyane Wade, Carmelo Anthony and a group of Black industry executives in response to the continued issue of racial injustice. Beyond Meat and the Social Change Fund both share the goal of creating lasting, systemic change for Black communities across America and fighting for justice on all fronts. “We are honored to join in partnership with Chris Paul, Dwyane Wade, and Carmelo Anthony in support of the Social Change Fund. Beyond Meat is dedicated to serving broader social goals, using what’s on the center of the plate as a critical starting point,” said Ethan Brown, Founder and CEO, Beyond Meat. “And we are excited to support and work with the Social Change Fund initiative to address racial inequalities in nutrition access and health outcomes in America.”“I’ve been a longtime supporter of Beyond Meat and am excited to welcome them as a founding partner into the Social Change Fund. Like the Social Change Fund, I know that Beyond Meat is committed to progress for our communities. I look forward to all the good that we can continue to do together,” said Chris Paul, Beyond Meat investor and ambassador.Beyond Meat believes food is a powerful vehicle for change, as seen in the impact of the company’s Feed a Million+ initiative. Launched in early April, the Feed a Million+ pledge aimed to provide more than 1 million Beyond Burgers and nourishing meals at no cost to frontline healthcare workers and communities in need. Beyond Meat rallied its employees and community of ambassadors and fans, including Chris Paul, Kevin Hart, Ashanti, Karlie Kloss, Lindsey Vonn and P.K. Subban, to nominate organizations to support. As the need continued to grow, Beyond Meat has already exceeded its commitment and provided over 5 million Beyond Burgers and nourishing meals through donations to organizations such as Feeding America, Food Bank For New York City, Lenox Hill Hospital, Cedars-Sinai, The Food Bank for Central & Northeast Missouri, DC Central Kitchen, Houston Food Bank, Second Harvest Canada and more.   About Social Change Fund Launched by Chris Paul, Dwyane Wade, Carmelo Anthony and others in the Black community, the Social Change Fund is on a mission to invest in and support organizations that are working to liberate Black people and advocate for indigenous people and communities of color through the lens of policy solutions, community representation and narrative change. In partnership with influential organizations, the Social Change Fund will work to accelerate social change and sustainably build a fair, equitable society.Chris Paul is an investor and ambassador of Beyond Meat, and an active philanthropist. As an athlete, Beyond Meat’s mission aligns with Paul’s belief that food is foundational to well-being and that nutritious, tasty options be available to all. Earlier this year, Chris Paul and Beyond Meat CEO and Founder Ethan Brown joined Michelle Obama’s Partnership for a Healthier America to discuss the future of food and the role of companies like Beyond Meat in creating health equality. About Beyond Meat Beyond Meat, Inc. (NASDAQ: BYND) is one of the fastest growing food companies in the United States, offering a portfolio of revolutionary plant-based meats. Founded in 2009, Beyond Meat has a mission of building meat directly from plants, an innovation that enables consumers to experience the taste, texture and other sensory attributes of popular animal-based meat products while enjoying the nutritional and environmental benefits of eating its plant-based meat products. Beyond Meat’s brand commitment, Eat What You Love™, represents a strong belief that by eating its portfolio of plant-based meats, consumers can enjoy more, not less, of their favorite meals, and by doing so, help address concerns related to human health, climate change, resource conservation and animal welfare. Beyond Meat’s portfolio of plant-based proteins were available at approximately 94,000 retail and foodservice outlets in 75 countries worldwide as of March 28, 2020. Visit www.BeyondMeat.com and follow @BeyondMeat, BeyondBurger and GoBeyond on Facebook, Instagram and Twitter.Media Contact Shira Zackai szackai@beyondmeat.comForward Looking StatementsCertain statements in this release constitute “forward-looking statements.” These statements are based on management’s current opinions, expectations, beliefs, plans, objectives, assumptions or projections regarding future events or future results. These forward-looking statements are only predictions, not historical fact, and involve certain risks and uncertainties, as well as assumptions. Actual results, levels of activity, performance, achievements and events could differ materially from those stated, anticipated or implied by such forward-looking statements. While Beyond Meat believes that its assumptions are reasonable, it is very difficult to predict the impact of known factors, and, of course, it is impossible to anticipate all factors that could affect actual results. There are many risks and uncertainties that could cause actual results to differ materially from forward-looking statements made herein including, most prominently, the risks discussed under the heading “Risk Factors” in Beyond Meat’s Form 10-Q for the quarter ended March 28, 2020 filed with the U.S. Securities and Exchange Commission (“SEC”) on May 12, 2020, the Company’s Annual Report on Form 10-K for the year ended December 31, 2019 filed with the SEC on March 19, 2020, as well as other factors described from time to time in Beyond Meat’s filings with the SEC. Such forward-looking statements are made only as of the date of this release. Beyond Meat undertakes no obligation to publicly update or revise any forward-looking statement because of new information, future events or otherwise, except as otherwise required by law. If we do update one or more forward-looking statements, no inference should be made that we will make additional updates with respect to those or other forward-looking statements.A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/734f6988-5b7c-4673-9be0-e0d3e7103eb2