Mizuho has adjusted its outlook on Beyond Meat (BYND, Financial), reducing the company's price target from $3 to $2. Analyst John Baumgartner maintains an Underperform rating on the stock, signaling ongoing challenges within the plant-based food sector. The firm anticipates that companies in this category may be particularly affected by fragile market fundamentals during the upcoming earnings season.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 7 analysts, the average target price for Beyond Meat Inc (BYND, Financial) is $3.66 with a high estimate of $6.00 and a low estimate of $2.50. The average target implies an upside of 44.26% from the current price of $2.54. More detailed estimate data can be found on the Beyond Meat Inc (BYND) Forecast page.
Based on the consensus recommendation from 11 brokerage firms, Beyond Meat Inc's (BYND, Financial) average brokerage recommendation is currently 3.5, indicating "Hold" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Beyond Meat Inc (BYND, Financial) in one year is $8.74, suggesting a upside of 244.09% from the current price of $2.54. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Beyond Meat Inc (BYND) Summary page.
BYND Key Business Developments
Release Date: February 26, 2025
- Full Year 2024 Net Revenues: $326.5 million, down 4.9% compared to 2023.
- Q4 2024 Net Revenues: $76.7 million, a 4% increase year over year.
- Full Year 2024 Gross Margin: 12.8%.
- Q4 2024 Gross Margin: 13.1%, up from negative 113.8% in the year-ago period.
- Operating Expenses Q4 2024: $47.8 million, a reduction from $76.9 million in the year-ago period.
- Net Loss Q4 2024: $44.9 million, compared to $155.1 million in the year-ago period.
- Adjusted EBITDA Q4 2024: Loss of $26 million, compared to a loss of $125.1 million in the year-ago period.
- Cash and Cash Equivalents: $145.6 million as of December 31, 2024.
- Total Outstanding Debt: $1.1 billion as of December 31, 2024.
- Capital Expenditures Full Year 2024: $11 million.
- 2025 Revenue Guidance: Expected to be in the range of $320 million to $335 million.
- 2025 Gross Margin Guidance: Approximately 20%.
- 2025 Operating Expenses Guidance: Expected to be in the range of $160 million to $180 million.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Beyond Meat Inc (BYND, Financial) achieved two consecutive quarters of year-over-year net revenue growth after more than two years of declining sales.
- The company launched new products, including Beyond 4, Sun sausage line, and an extension of the Beyondsate platform, which received accreditations from the American Heart Association and American Diabetes Association.
- Operating expenses were reduced by over $50 million in 2024, excluding a $7.5 million settlement.
- Gross margin improved to 13.1% in Q4 2024, up substantially year-over-year.
- International expansion continues with new product launches in France and other European markets, including partnerships with McDonald's and other QSRs.
Negative Points
- Despite improvements, the full-year net revenues for 2024 were down 4.9% compared to 2023.
- Gross margin for the full year was lower than expected at 12.8%, impacted by lower-than-expected net revenue per pound and unfavorable foreign currency exchange rates.
- US Foodservice net revenues decreased by 2.1% in Q4 2024, primarily due to lower burger sales to a large QSR customer.
- Operating expenses, although reduced, still amounted to $47.8 million in Q4 2024.
- The company announced a reduction in force and suspension of operational activities in China to further reduce operating expenses.
