Shares of Beyond Meat (BYND -10.39%) are having another rough week after the plant-based meat company issued another disappointing earnings report. The company missed bottom-line estimates, announced another round of layoffs and cost cuts, and its guidance for 2025 was below expectations.
According to data from S&P Global Market Intelligence, the stock was down 20.1% for the week as of Thursday at 1:00 p.m. ET.
Image source: Beyond Meat.
Beyond Meat loses its sizzle
For the fourth quarter, revenue rose 4% to $76.7 million, which edged out estimates at $76.1 million. While revenue growth did mark an improvement from earlier in the year, the other numbers indicated that Beyond Meat is still struggling.
Gross profit was just $10 million, or 13.1% of revenue. While that was a significant improvement from a year ago, it still shows the company is unable to charge sufficient prices to cover its costs. Further down the income statement, Beyond Meat reported an operating loss of $37.8 million and a per-share loss of $0.65, worse than estimates of $0.45 per share.
The company also announced another round of layoffs, cutting 9% of its total workforce, and it said it would suspend operations in China.
Looking ahead, the company forecasts revenue of $320 million to $335 million for 2025, which represents essentially flat growth compared to the $326.5 million it finished 2024 with. At the midpoint, that was also worse than the consensus at $331.8 million.
What it means for Beyond Meat
While Beyond Meat is making improvements in its profitability, targeting 20% gross margins for 2025, the company still seems to be a ways away from bottom-line profitability. The lack of top-line growth is also concerning because this was supposed to be a disruptive company that would steadily take market share from traditional meat processors.
At this point, the Beyond Meat investing thesis has collapsed. While the company may eventually get back on its feet, management needs better ideas than just cutting its way to profitability.
Jeremy Bowman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Beyond Meat. The Motley Fool has a disclosure policy.
