UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of Earliest Event Reported): February 24, 2022
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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.☐
Item 2.02. Results of Operations and Financial Condition.
On February 24, 2022, Beyond Meat, Inc. (the “Company”) issued a press release announcing its financial results for the fourth quarter and fiscal year ended December 31, 2022. The full text of the press release is furnished herewith as Exhibit 99.1 and is incorporated herein by reference.
In accordance with General Instruction B.2 of Form 8-K, the information contained or incorporated in this Item 2.02, including the press release furnished herewith as Exhibit 99.1, shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed to be incorporated by reference into any filing under the Securities Act of 1933, as amended (the "Securities Act"), or the Exchange Act, regardless of any general incorporation language in such filing, except as shall be expressly set forth by specific reference in such a filing.
Item 7.01. Regulation FD Disclosure.
On February 24, 2022, representatives of the Company will begin making presentations using slides containing the information attached to this Current Report on Form 8-K as Exhibit 99.2 (the “Investor Presentation”). The Company expects to use the Investor Presentation, in whole or in part, and possibly with modifications, in connection with presentations to investors, analysts and others. A copy of the Investor Presentation will be available on the “Investors” section of the Company’s website at www.beyondmeat.com.
The information contained in the Investor Presentation is summary information that is intended to be considered in the context of the Company’s Securities and Exchange Commission (“SEC”) filings and other public announcements that the Company may make, by press release or otherwise, from time to time. The Investor Presentation speaks only as of the date of this Current Report on Form 8-K. The Company undertakes no duty or obligation to publicly update or revise the information contained in the Investor Presentation, although it may do so from time to time. Any such updating may be made through the filing of other reports or documents with the SEC, through press releases or through other public disclosure. In addition, the exhibit furnished herewith contains statements intended as “forward-looking statements” that are subject to the cautionary statements about forward-looking statements set forth in such exhibit.
By furnishing the information contained in the Investor Presentation, the Company makes no admission as to the materiality of any information in the Investor Presentation that is required to be disclosed solely by reason of Regulation FD.
In accordance with General Instruction B.2. of Form 8-K, the information contained or incorporated in this Item 7.01, including the Investor Presentation furnished herewith as Exhibit 99.2, shall not be deemed “filed” for the purposes of Section 18 of the Exchange Act, or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference into any filing under the Securities Act or the Exchange Act, regardless of any general incorporation language in such filing, except as shall be expressly set forth by specific reference in such filing.
Item 8.01. Other Information.
2022 Virtual Annual Meeting of Stockholders
The Company will hold its 2022 virtual annual meeting of stockholders on Tuesday, May 24, 2022 at 8:00 a.m. Pacific Time. The Board has established the close of business on March 28, 2022 as the record date for determining stockholders entitled to vote at the 2022 virtual annual meeting of stockholders. Additional information regarding the Company’s 2022 virtual annual meeting of stockholders will be disclosed in the Company’s Proxy Statement to be filed with the SEC.
Note Regarding Forward-Looking Statements
Certain statements in this Current Report on Form 8-K 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 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 the Company 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 the risks discussed under the heading “Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020, the Company’s subsequently filed Quarterly Reports on Form 10-Q, and the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2021 to be filed with the SEC, as well as other factors described from time to time in the Company's filings with the SEC. Such forward-looking statements are made only as of the date of this Current Report on Form 8-K. The Company 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 it does update one or more forward-looking statements, no inference should be made that the Company will make additional updates with respect to those or other forward-looking statements.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits
Exhibit Number | Description | |||||||
| 99.1 | ||||||||
| 99.2 | ||||||||
| 104 | Cover page interactive data file (embedded with the inline XBRL document) | |||||||
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| BEYOND MEAT, INC. | |||||
| By: | /s/ Philip E. Hardin | ||||
| Philip E. Hardin | |||||
| Chief Financial Officer and Treasurer | |||||
Date: February 24, 2022
Exhibit 99.1
For immediate release
Beyond Meat® Reports Fourth Quarter and Full Year 2021 Financial Results
Company Provides Full Year 2022 Revenue Outlook
EL SEGUNDO, Calif.— February 24, 2022 (GLOBE NEWSWIRE)—Beyond Meat, Inc. (NASDAQ: BYND) (“Beyond Meat” or “the Company”), a leader in plant-based meat, today reported financial results for its fourth quarter and full year ended December 31, 2021.
Fourth Quarter 2021 Financial Highlights1
•Net revenues were $100.7 million, a decrease of 1.2% year-over-year.
•Gross profit was $14.2 million, or gross margin of 14.1% of net revenues.
•Net loss was $80.4 million, or $1.27 per common share. Net loss as a percentage of net revenues was -79.8%.
•Adjusted EBITDA was a loss of $62.9 million, or -62.5% of net revenues.
Full Year 2021 Financial Highlights1
•Net revenues were $464.7 million, an increase of 14.2% year-over-year.
•Gross profit was $117.3 million, or gross margin of 25.2% of net revenues.
•Net loss was $182.1 million, or $2.88 per common share. Net loss as a percentage of net revenues was -39.2%.
•Adjusted EBITDA was a loss of $112.8 million, or -24.3% of net revenues.
Beyond Meat President and CEO Ethan Brown commented, "In 2021 we saw strong growth in our international channel net revenues, as well as sporadic yet promising signs of a resumption of growth in U.S. foodservice channel net revenues as COVID-19 variants peaked and declined. These gains, however, were dampened by what we believe to be a temporary disruption in U.S. retail growth, for our brand and the broader category. Despite the variability and challenges of the year, we did not deviate from building the foundation for our long-term growth. The investments we made in our team, infrastructure, and capabilities across the U.S., EU, and China, as well as extensive product scaling
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.
activities for key strategic partners, weighed heavily on operating expenses and gross margin during a fourth quarter and year that were already impacted by lower than expected volumes. However, we believe these investments will be instrumental in driving our long-term growth."
Brown added, "As we begin 2022, we are pleased with the progress we are making against our long-term strategy, such as the number of tests and core menu placements recently announced by our global QSR partners. Though we will continue to invest during 2022, we expect to substantially moderate the growth of our operating expenses as we leverage the building blocks we now have in place to serve our customers, consumers, and markets — bringing forward our exciting and expansive future one delicious serving at a time."
Fourth Quarter 2021
Net revenues decreased 1.2% to $100.7 million in the fourth quarter of 2021, compared to $101.9 million in the year-ago period. Increased U.S. foodservice and international channel net revenues were more than offset by reduced U.S. retail channel net revenues, which decreased 19.5% compared to the year-ago period. The decrease in U.S. retail channel net revenues primarily reflected softer demand, five fewer shipping days in the fourth quarter of 2021 compared to the year-ago period, increased trade discounts, and, to a lesser extent, loss of market share. Increases in U.S. foodservice and international channel net revenues were primarily attributable to higher demand from existing outlets, new product introductions, and expansion of distribution, partially offset by increased trade discounts. In aggregate, net revenue per pound of $5.19 during the fourth quarter of 2021 decreased approximately 7% compared to the year-ago period.
Net revenues by channel:
| (Unaudited) | ||||||||||||||||||||||||||
| Three Months Ended December 31, | Change | |||||||||||||||||||||||||
| (in thousands) | 2021 | 2020 | Amount | % | ||||||||||||||||||||||
| U.S.: | ||||||||||||||||||||||||||
| Retail | $ | 49,978 | $ | 62,092 | $ | (12,114) | (19.5) | % | ||||||||||||||||||
| Foodservice | 20,633 | 15,321 | 5,312 | 34.7 | % | |||||||||||||||||||||
| U.S. net revenues | 70,611 | 77,413 | (6,802) | (8.8) | % | |||||||||||||||||||||
| International: | ||||||||||||||||||||||||||
| Retail | $ | 14,349 | $ | 12,973 | $ | 1,376 | 10.6 | % | ||||||||||||||||||
| Foodservice | 15,718 | 11,551 | 4,167 | 36.1 | % | |||||||||||||||||||||
| International net revenues | 30,067 | 24,524 | 5,543 | 22.6 | % | |||||||||||||||||||||
| Net revenues | $ | 100,678 | $ | 101,937 | $ | (1,259) | (1.2) | % | ||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||||||||
| Year Ended December 31, | Change | |||||||||||||||||||||||||
| (in thousands) | 2021 | 2020 | Amount | % | ||||||||||||||||||||||
| U.S.: | ||||||||||||||||||||||||||
| Retail | $ | 243,360 | $ | 264,111 | $ | (20,751) | (7.9) | % | ||||||||||||||||||
| Foodservice | 76,475 | 60,763 | 15,712 | 25.9 | % | |||||||||||||||||||||
| U.S. net revenues | 319,835 | 324,874 | (5,039) | (1.6) | % | |||||||||||||||||||||
| International: | ||||||||||||||||||||||||||
| Retail | $ | 81,483 | $ | 36,472 | $ | 45,011 | 123.4 | % | ||||||||||||||||||
| Foodservice | 63,382 | 45,439 | 17,943 | 39.5 | % | |||||||||||||||||||||
| International net revenues | 144,865 | 81,911 | 62,954 | 76.9 | % | |||||||||||||||||||||
| Net revenues | $ | 464,700 | $ | 406,785 | $ | 57,915 | 14.2 | % | ||||||||||||||||||
Gross profit was $14.2 million, or gross margin of 14.1% of net revenues, in the fourth quarter of 2021, compared to $25.4 million, or gross margin of 24.9% of net revenues, in the year-ago period. During the fourth quarter of 2020, gross profit included $3.7 million of expenses related to inventory write-offs and reserves attributable to COVID-19. Excluding these costs, of which there were none in the fourth quarter of 2021, Adjusted gross profit in the year-ago period was $29.1 million, or Adjusted gross margin of 28.5% of net revenues. Compared to Adjusted gross margin in the year-ago period, the decrease in gross margin in the fourth quarter of 2021 was primarily due to changes in revenue per pound due to product mix and increased trade discounts, combined with increases in per unit manufacturing costs including depreciation, logistics costs, inventory write-offs and reserves, partially offset by reduced per unit direct materials costs.
Loss from operations in the fourth quarter of 2021 was $77.7 million compared to $24.5 million in the year-ago period. The increase in loss from operations was primarily driven by the decline in gross profit, combined with higher operating expenses primarily due to increased investments in marketing activities, general and administrative expenses, primarily driven by higher professional services fees related to recently established consulting agreements, growth in overall headcount levels, increased production trial activities, and higher restructuring expenses primarily reflecting increased legal costs.
Net loss was $80.4 million in the fourth quarter of 2021 compared to $25.1 million in the year-ago period. Net loss per common share was $1.27 in the fourth quarter of 2021 compared to $0.40 in the year-ago period. During the fourth quarter of 2020, net loss included $3.7 million of expenses related to inventory write-offs and reserves attributable to COVID-19. Excluding these costs, Adjusted net loss was $21.4 million, or $0.34 per common share, in the fourth quarter of 2020. There were no similar costs in the fourth quarter of 2021.
Adjusted EBITDA was a loss of $62.9 million, or -62.5% of net revenues, in the fourth quarter of 2021 compared to an Adjusted EBITDA loss of $9.5 million, or -9.3% of net revenues, in the year-ago period.
Balance Sheet and Cash Flow Highlights
The Company’s cash and cash equivalents balance was $733.3 million and total outstanding debt was $1.1 billion as of December 31, 2021. Net cash used in operating activities was $301.4 million for the year ended December 31, 2021, compared to $40.0 million for the year-ago period. Capital expenditures totaled $136.0 million for the year ended December 31, 2021, compared to $57.7 million for the year-ago period. The increase in capital expenditures was primarily due to the Company’s continued investments in production equipment and facilities related to capacity expansion initiatives domestically and abroad.
2022 Outlook
The Company's operating environment continues to be affected by near-term uncertainty related to COVID-19 and its potential impact including on demand levels, labor availability and supply chain disruptions. Management's outlook assumes reasonable containment of COVID-19 infection rates both in the U.S. and abroad, but the Company acknowledges that its operating results could differ materially from the expectations set forth below if its assumptions related to COVID-19 and the associated effects do not materialize. Based on management's best assessment of the environment today, the Company is providing the following guidance for the full year 2022:
•Net revenues in the range of $560 million to $620 million, an increase of 21% to 33% compared to 2021.
Conference Call and Webcast
The Company will host a conference call and webcast to discuss these results with additional comments and details today at 5:00 p.m. Eastern, 2:00 p.m. Pacific. Investors interested in participating in the live call can dial 412-317-5180. The conference call webcast will be available live over the Internet through the “Investors” section of the Company’s website at www.beyondmeat.com and later archived.
About Beyond Meat
Beyond Meat, Inc. (NASDAQ: BYND) is a leading plant-based meat company offering a portfolio of revolutionary plant-based meats made from simple ingredients without GMOs, hormones, antibiotics or cholesterol. Founded in 2009, Beyond Meat products are designed to have the same taste and texture as animal-based meat while being better for people and the planet. Beyond Meat’s brand commitment, Eat What You Love®, represents a strong belief that there is a better way to feed our future and that the positive choices we all make, no matter how small, can have a great impact on our personal health and the health of our planet. By shifting from animal-based meat to plant-based protein, we can positively impact four growing global issues: human health, climate change, constraints on natural resources and
animal welfare. As of December 2021, Beyond Meat had products available at approximately 130,000 retail and foodservice outlets in over 90 countries worldwide. Visit www.BeyondMeat.com and follow @BeyondMeat, #BeyondBurger and #GoBeyond on Facebook, Instagram, Twitter and TikTok.
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 ultimate duration, magnitude and effects of the pandemic and, in particular, the impact to the foodservice channel, operations and supply chains, 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, in particular, the COVID-19 pandemic, 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 outbreaks (such as COVID-19), including on our business, financial condition, cash flow and results of operations, including on our supply chain, the demand for our products, our product and channel mix, labor needs at the Company as well as in the supply chain at customers, the timing and level of retail purchasing, the timing and level of foodservice purchasing, our manufacturing and co-manufacturing facilities and operations, our inventory levels, our ability to expand and produce in new geographic markets or the timing of such expansion efforts, the pace and success of new product introductions, the timing of new foodservice launches, and on overall economic conditions and consumer confidence and spending levels; the impact of uncertainty in our domestic and international supply chain, including labor shortages and disruption and shipping delays and disruption; a resurgence of COVID-19 and the impact of variants of the virus that causes COVID-19 which could slow, halt or reverse the reopening process, or result in the reinstatement of social distancing measures, business
closures, restrictions on operations, quarantines and travel bans; the impact of uncertainty as a result of doing business in China and Europe; government or employer mandates requiring certain behaviors from employees due to COVID-19, including COVID-19 vaccine mandates, which could result in employee attrition at the Company, suppliers and customers as well as difficulty securing future labor needs; the impact of adverse and uncertain economic and political conditions in the U.S. and international markets; the volatility of capital markets and other macroeconomic factors; our ability to effectively manage our growth in the U.S. and abroad; our ability to identify and execute cost-down initiatives intended to achieve price parity with animal protein; the success of operations conducted by joint ventures, such as The PLANeT Partnership, LLC with PepsiCo, Inc., where we share ownership and management of a company with one or more parties who may not have the same goals, strategies or priorities as we do and where we do not receive all of the financial benefit; the effects of increased competition from our market competitors and new market entrants; changes in the retail landscape, including the timing and level of trade and promotion discounts, our ability to grow market share and increase household penetration, repeat buying rates and purchase frequency, and our ability to maintain and increase sales velocity of our products; changes in the foodservice landscape, including the timing and level of marketing and other financial incentives to assist in the promotion of our products, our ability to grow market share and attract and retain new foodservice customers or retain existing foodservice customers, and our ability to introduce and sustain offering of our products on menus; the timing and success of distribution expansion and new product introductions in increasing revenues and market share; the timing and success of strategic partnership launches and limited time offerings resulting in permanent menu items; our estimates of the size of market opportunities and ability to accurately forecast market growth; our ability to effectively expand our manufacturing and production capacity, including effectively managing capacity for specific products; our ability to accurately forecast our future results of operations, including fluctuations in demand for our products and any increased competition; our ability to accurately forecast demand for our products and manage our inventory, including the impact of customer orders ahead of holidays and shelf reset activities, and supply chain and labor disruptions; our operational effectiveness and ability to fulfill orders in full and on time; variations in product selling prices and costs, and the mix of products sold; our ability to successfully enter new geographic markets, manage our international expansion and comply with any applicable laws and regulations, including risks associated with doing business in foreign countries, substantial investments in our manufacturing operations in China and The Netherlands, and our ability to comply with the U.S. Foreign Corrupt Practices Act or other anti-corruption laws; the effects of global outbreaks of pandemics or contagious diseases or fear of such outbreaks, such as COVID-19; 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 at competitive prices to manufacture our products; the availability of pea and other protein that meets our standards; our ability to diversify the protein sources used for our products; our ability to differentiate and continuously create innovative products, respond to competitive innovation and achieve speed-to-market; our ability to successfully execute our strategic initiatives; the volatility associated with ingredient, packaging, transportation and other input costs; the impact of inflation across the economy, including higher food, grocery, transportation and fuel costs; real or perceived quality or health issues with our products or other issues that adversely affect our brand and reputation; our ability to accurately predict consumer taste preferences, trends and demand and successfully innovate, introduce and commercialize new products and improve existing products, including in new geographic markets; significant disruption in, or breach in security of our information technology systems and resultant interruptions in service and any related impact on our reputation, including related to data privacy; the ability of our transportation providers to ship and deliver our products in a timely and cost effective manner; management and key personnel changes, the attraction and retention of qualified employees and key personnel, and our ability to maintain our company culture as we grow; risks related to use of a professional employer organization to administer human resources, payroll and employee benefits functions for certain of our international employees or use of certain third party service providers for the performance of several business operations including payroll and human capital management services; the effects of natural or man-made catastrophic or severe weather 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 the plant-based industry category; the effectiveness of our internal controls; the requirements of being a public company and effects of increased administration costs related to compliance and reporting obligations; our significant indebtedness and ability to pay such indebtedness; risks related to our debt, including limitations on our cash flow from operations and our ability to satisfy our obligations under the convertible senior notes; our ability to raise the funds necessary to repurchase the convertible senior notes for cash, under certain circumstances, or to pay any cash amounts due upon conversion; provisions in the indenture governing the convertible senior notes delaying or preventing an otherwise beneficial takeover of us; any adverse impact on our reported financial condition and results from the accounting methods for the convertible senior notes; estimates of our expenses, future revenues, capital expenditures, capital requirements and our needs for additional financing; our ability to meet our obligations under our campus headquarters lease, the timing of occupancy and completion of the build-out of our space, cost overruns, delays and the impact of COVID-19 on our space demands; our ability to meet our obligations under leases for our corporate offices, manufacturing facilities and warehouses; changes in laws and government regulation affecting our business, including Food and Drug Administration and Federal Trade Commission governmental regulation, and state, local and foreign regulation; new or pending legislation, or changes in laws, regulations or policies of governmental agencies or regulators, both in the U.S. and abroad, affecting
plant-based meat, the labeling or naming of our products, or our brand name or logo; the failure of acquisitions and other investments to be efficiently integrated and produce the results we anticipate; risks inherent in investment in real estate; 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; our ability and the ability of our suppliers and co-manufacturers to comply with food safety, environmental or other laws and regulations; seasonality, including increased levels of purchasing by customers ahead of holidays, customer shelf reset activity and the timing of product restocking by our retail customers; the sufficiency of our cash and cash equivalents to meet our liquidity needs and service our indebtedness and our ability to access capital markets upon favorable terms; economic conditions and the impact on consumer spending; impact of increased scrutiny from stakeholders and institutional investors on environmental, social and governance practices; outcomes of legal or administrative proceedings, or new legal or administrative proceedings filed against us; our, our suppliers’ and our co-manufacturers’ ability to protect our proprietary technology and intellectual property adequately; the impact of tariffs and trade wars; the impact of changes in tax laws; foreign exchange rate fluctuations; and the risks discussed under the heading “Risk Factors” in the Company’s Quarterly Report on Form 10-Q for the quarter ended October 2, 2021 filed with the SEC on November 12, 2021, and the Company’s Annual Report on Form 10-K for the year ended December 31, 2021 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 Measures
The 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, Adjusted net loss 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 Channels
Investors 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, and @BeyondMeatOfficial on TikTok). 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.
Contacts
Media:
Shira Zackai
shira.zackai@beyondmeat.com
Investors:
Fitzhugh Taylor and Raphael Gross
beyondmeat@icrinc.com
BEYOND MEAT, INC. AND SUBSIDIARIES
Consolidated Statements of Operations
(In thousands, except share and per share data)
(Unaudited)
| Three Months Ended December 31, | Year Ended December 31, | |||||||||||||||||||||||||
| 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||||||
| Net revenues | $ | 100,678 | $ | 101,937 | $ | 464,700 | $ | 406,785 | ||||||||||||||||||
| Cost of goods sold | 86,433 | 76,532 | 347,419 | 284,510 | ||||||||||||||||||||||
| Gross profit | 14,245 | 25,405 | 117,281 | 122,275 | ||||||||||||||||||||||
| Research and development expenses | 22,336 | 11,047 | 66,946 | 31,535 | ||||||||||||||||||||||
| Selling, general and administrative expenses | 65,872 | 38,488 | 209,474 | 133,655 | ||||||||||||||||||||||
| Restructuring expenses | 3,726 | 402 | 15,794 | 6,430 | ||||||||||||||||||||||
| Total operating expenses | 91,934 | 49,937 | 292,214 | 171,620 | ||||||||||||||||||||||
| Loss from operations | (77,689) | (24,532) | (174,933) | (49,345) | ||||||||||||||||||||||
| Other (expense) income, net: | ||||||||||||||||||||||||||
| Interest expense | (992) | (613) | (3,648) | (2,576) | ||||||||||||||||||||||
| Other, net | 144 | 70 | (487) | (759) | ||||||||||||||||||||||
| Total other expense, net | (848) | (543) | (4,135) | (3,335) | ||||||||||||||||||||||
| Loss before taxes | (78,537) | (25,075) | (179,068) | (52,680) | ||||||||||||||||||||||
| Income tax expense | 33 | 2 | 60 | 72 | ||||||||||||||||||||||
| Equity in losses of unconsolidated joint venture | 1,801 | — | 2,977 | — | ||||||||||||||||||||||
| Net loss | $ | (80,371) | $ | (25,077) | $ | (182,105) | $ | (52,752) | ||||||||||||||||||
| Net loss per share available to common stockholders—basic and diluted | $ | (1.27) | $ | (0.40) | $ | (2.88) | $ | (0.85) | ||||||||||||||||||
| Weighted average common shares outstanding—basic and diluted | 63,357,486 | 62,723,875 | 63,172,368 | 62,290,445 | ||||||||||||||||||||||
BEYOND MEAT, INC. AND SUBSIDIARIES
Consolidated Balance Sheets
(In thousands, except share and per share data)
(Unaudited)
| December 31, | |||||||||||
| 2021 | 2020 | ||||||||||
| Assets | |||||||||||
| Current assets: | |||||||||||
| Cash and cash equivalents | $ | 733,294 | $ | 159,127 | |||||||
| Accounts receivable, net | 43,806 | 35,975 | |||||||||
| Inventory | 241,870 | 121,717 | |||||||||
| Prepaid expenses and other current assets | 33,078 | 15,407 | |||||||||
| Total current assets | 1,052,048 | 332,226 | |||||||||
| Property, plant, and equipment, net | 226,489 | 115,299 | |||||||||
| Operating lease right-of-use assets | 26,815 | 14,570 | |||||||||
| Prepaid lease costs, non-current | 59,188 | — | |||||||||
| Other non-current assets, net | 6,836 | 5,911 | |||||||||
| Investment in unconsolidated joint venture | 8,023 | — | |||||||||
| Total assets | $ | 1,379,399 | $ | 468,006 | |||||||
| Liabilities and Stockholders’ Equity: | |||||||||||
| Current liabilities: | |||||||||||
| Accounts payable | $ | 69,040 | $ | 53,071 | |||||||
| Wages payable | 155 | 2,843 | |||||||||
| Accrued bonus | 128 | 57 | |||||||||
| Current portion of operating lease liabilities | 4,458 | 3,095 | |||||||||
| Accrued expenses and other current liabilities | 20,226 | 4,830 | |||||||||
| Short-term borrowings under revolving credit facility | — | 25,000 | |||||||||
| Short-term finance lease liabilities | 182 | 71 | |||||||||
| Total current liabilities | $ | 94,189 | $ | 88,967 | |||||||
| Long-term liabilities: | |||||||||||
| Convertible senior notes, net | $ | 1,129,674 | $ | — | |||||||
| Operating lease liabilities, net of current portion | 22,599 | 11,793 | |||||||||
| Finance lease obligations and other long term liabilities | 442 | 149 | |||||||||
| Total long-term liabilities | $ | 1,152,715 | $ | 11,942 | |||||||
| 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 at December 31, 2021 and 2020; 63,400,899 and 62,820,351 shares issued and outstanding at December 31, 2021 and 2020, respectively | 6 | 6 | |||||||||
| Additional paid-in capital | 510,014 | 560,210 | |||||||||
| Accumulated deficit | (376,972) | (194,867) | |||||||||
| Accumulated other comprehensive (loss) income | (553) | 1,748 | |||||||||
| Total stockholders’ equity | $ | 132,495 | $ | 367,097 | |||||||
| Total liabilities and stockholders’ equity | $ | 1,379,399 | $ | 468,006 | |||||||
BEYOND MEAT, INC. AND SUBSIDIARIES | ||||||||||||||
Consolidated Statements of Cash Flows | ||||||||||||||
(In thousands) | ||||||||||||||
| (Unaudited) | ||||||||||||||
| Year Ended December 31, | ||||||||||||||
| 2021 | 2020 | |||||||||||||
| Cash flows from operating activities: | ||||||||||||||
| Net loss | $ | (182,105) | $ | (52,752) | ||||||||||
| Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||||||||
| Depreciation and amortization | 21,663 | 13,299 | ||||||||||||
| Non-cash lease expense | 3,418 | 2,341 | ||||||||||||
| Share-based compensation expense | 27,698 | 27,279 | ||||||||||||
| Loss on sale of fixed assets | 199 | 222 | ||||||||||||
| Amortization of debt issuance costs | 3,322 | 256 | ||||||||||||
| Loss on extinguishment of debt | 1,037 | 1,538 | ||||||||||||
| Equity in losses of unconsolidated joint venture | 2,977 | — | ||||||||||||
| Net change in operating assets and liabilities: | ||||||||||||||
| Accounts receivable | (8,463) | 4,516 | ||||||||||||
| Inventories | (122,666) | (38,863) | ||||||||||||
| Prepaid expenses and other assets | (21,414) | (9,699) | ||||||||||||
| Accounts payable | 21,665 | 16,027 | ||||||||||||
| Accrued expenses and other current liabilities | 13,961 | (1,965) | ||||||||||||
| Prepaid lease costs, non-current | (59,188) | — | ||||||||||||
| Operating lease liabilities | (3,474) | (2,194) | ||||||||||||
| Net cash used in operating activities | $ | (301,370) | $ | (39,995) | ||||||||||
| Cash flows from investing activities: | ||||||||||||||
| Purchases of property, plant and equipment | $ | (135,961) | $ | (57,696) | ||||||||||
| Asset acquisition | — | (15,482) | ||||||||||||
| Purchases of property, plant and equipment held for sale | — | (2,288) | ||||||||||||
| Proceeds from note receivable on assets previously held for sale | — | 599 | ||||||||||||
| Payments for investment in joint venture | (11,000) | — | ||||||||||||
| Payment of security deposits | (518) | (33) | ||||||||||||
| Net cash used in investing activities | $ | (147,479) | $ | (74,900) | ||||||||||
| Cash flows from financing activities: | ||||||||||||||
| Proceeds from revolving credit facility | $ | — | $ | 50,000 | ||||||||||
| Proceeds from issuance of convertible senior notes | 1,150,000 | — | ||||||||||||
| Purchase of capped calls related to convertible senior notes | (83,950) | — | ||||||||||||
| Debt issuance costs | (23,605) | (1,224) | ||||||||||||
| Debt extinguishment costs | — | (1,200) | ||||||||||||
| Repayment of revolving credit facility | (25,000) | (25,000) | ||||||||||||
| Repayment of revolving credit line | — | (6,000) | ||||||||||||
| Repayment of term loan | — | (20,000) | ||||||||||||
| Repayment of equipment loan | — | (5,000) | ||||||||||||
| (continued on the next page) | ||||||||||||||
BEYOND MEAT, INC. AND SUBSIDIARIES | ||||||||||||||
Consolidated Statements of Cash Flows | ||||||||||||||
(In thousands) | ||||||||||||||
| (Unaudited) | ||||||||||||||
| Year Ended December 31, | ||||||||||||||
| 2021 | 2020 | |||||||||||||
| Principal payments under finance lease obligations | (177) | (70) | ||||||||||||
| Proceeds from exercise of stock options | 8,135 | 9,007 | ||||||||||||
| Payments of minimum withholding taxes on net share settlement of equity awards | (3,081) | (2,275) | ||||||||||||
| Net cash provided by (used in) financing activities | $ | 1,022,322 | $ | (1,762) | ||||||||||
| Net increase (decrease) in cash and cash equivalents | $ | 573,473 | $ | (116,657) | ||||||||||
| Cash and cash equivalents at the beginning of the period | 159,127 | 275,988 | ||||||||||||
| Effect of exchange rate changes on cash | 694 | (204) | ||||||||||||
| Cash and cash equivalents at the end of the period | $ | 733,294 | $ | 159,127 | ||||||||||
| Supplemental disclosures of cash flow information: | ||||||||||||||
| Cash paid (received) during the period for: | ||||||||||||||
| Interest | $ | 348 | $ | 2,564 | ||||||||||
| Taxes | $ | (10) | $ | 18 | ||||||||||
| Non-cash investing and financing activities: | ||||||||||||||
| Non-cash additions to property, plant and equipment | $ | 5,239 | $ | 10,719 | ||||||||||
| Operating lease right-of-use assets obtained in exchange for lease liabilities | $ | 16,701 | $ | 4,706 | ||||||||||
| Non-cash additions to financing leases | $ | 580 | $ | — | ||||||||||
| Note receivable from sale of assets held for sale | $ | — | $ | 4,558 | ||||||||||
| Reclassification of other current liability to additional paid-in capital in connection with the share-settled obligation | $ | 2,535 | $ | — | ||||||||||
Non-GAAP Financial Measures
Beyond 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 purposes. Management also believes these measures are widely used by investors, securities analysts, rating agencies and other parties in evaluating companies in our industry as a measure of our operational performance. 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 and Adjusted net loss per diluted common share
Adjusted net loss is defined as net loss adjusted to exclude, when applicable, costs attributable to COVID-19, 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 per diluted common share is defined as Adjusted net loss divided by the number of diluted common shares outstanding.
We consider Adjusted net loss and Adjusted net loss per diluted common share to be useful indicators of operating performance because excluding special items allows for period-over-period comparisons of our ongoing operations. Adjusted net loss 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 adjusted to exclude, when applicable, income tax (benefit) expense, interest expense, depreciation and amortization expense, restructuring expenses, share-based compensation expense, expenses attributable to COVID-19, and Other, net, including interest income, loss on extinguishment of debt and foreign currency transaction gains and losses. Adjusted EBITDA as a % of net revenues is defined as Adjusted EBITDA divided by net revenues.
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, Adjusted net loss per diluted common share, Adjusted EBITDA and Adjusted EBITDA as a % of net revenues 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 and Adjusted net loss 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 interest income, loss on extinguishment of debt 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 | Year Ended | |||||||||||||||||||||||||
| (in thousands) | December 31, 2021 | December 31, 2020 | December 31, 2021 | December 31, 2020 | ||||||||||||||||||||||
| Gross profit, as reported | $ | 14,245 | $ | 25,405 | $ | 117,281 | $ | 122,275 | ||||||||||||||||||
| Repacking costs attributable to COVID-19 | — | — | — | 6,572 | ||||||||||||||||||||||
Inventory write-offs and reserves attributable to COVID-19 | — | 3,719 | — | 4,823 | ||||||||||||||||||||||
| Adjusted gross profit | $ | 14,245 | $ | 29,124 | $ | 117,281 | $ | 133,670 | ||||||||||||||||||
| Three Months Ended | Year Ended | |||||||||||||||||||||||||
| December 31, 2021 | December 31, 2020 | December 31, 2021 | December 31, 2020 | |||||||||||||||||||||||
| Gross margin, as reported | 14.1% | 24.9% | 25.2% | 30.1% | ||||||||||||||||||||||
| Repacking costs attributable to COVID-19, as a percentage of net revenues | — | % | — | % | — | % | 1.6 | % | ||||||||||||||||||
| Inventory write-offs and reserves attributable to COVID-19, as a percentage of net revenues | — | % | 3.6 | % | — | % | 1.2 | % | ||||||||||||||||||
| Adjusted gross margin | 14.1% | 28.5% | 25.2% | 32.9% | ||||||||||||||||||||||
The following tables present the reconciliation of Adjusted net loss and Adjusted net loss per diluted common share to their most comparable GAAP measures, net loss and net loss per share available to common stockholders—basic and diluted, respectively, as reported (unaudited):
| Three Months Ended | Year Ended | ||||||||||||||||||||||
| (in thousands) | December 31, 2021 | December 31, 2020 | December 31, 2021 | December 31, 2020 | |||||||||||||||||||
Net loss, as reported | $ | (80,371) | $ | (25,077) | $ | (182,105) | $ | (52,752) | |||||||||||||||
Repacking costs attributable to COVID-19 | — | — | — | 6,572 | |||||||||||||||||||
Inventory write-offs and reserves attributable to COVID-19 | — | 3,719 | — | 4,823 | |||||||||||||||||||
Product donations attributable to COVID-19 relief efforts | — | — | — | 2,742 | |||||||||||||||||||
Loss on extinguishment of debt | — | — | 1,037 | 1,538 | |||||||||||||||||||
Adjusted net loss | $ | (80,371) | $ | (21,358) | $ | (181,068) | $ | (37,077) | |||||||||||||||
| Three Months Ended | Year Ended | ||||||||||||||||||||||
| (in thousands, except share and per share amounts) | December 31, 2021 | December 31, 2020 | December 31, 2021 | December 31, 2020 | |||||||||||||||||||
Numerator: | |||||||||||||||||||||||
Net loss, as reported | $ | (80,371) | $ | (25,077) | $ | (182,105) | $ | (52,752) | |||||||||||||||
Aggregate non-GAAP adjustments as listed above | — | 3,719 | 1,037 | 15,675 | |||||||||||||||||||
Adjusted net loss used in computing Adjusted net loss per diluted common share | $ | (80,371) | $ | (21,358) | $ | (181,068) | $ | (37,077) | |||||||||||||||
Denominator: | |||||||||||||||||||||||
Weighted average shares used in computing Adjusted net loss per diluted common share | 63,357,486 | 62,723,875 | 63,172,368 | 62,290,445 | |||||||||||||||||||
Adjusted net loss per diluted common share | $ | (1.27) | $ | (0.34) | $ | (2.87) | $ | (0.60) | |||||||||||||||
| Three Months Ended | Year Ended | ||||||||||||||||||||||
| December 31, 2021 | December 31, 2020 | December 31, 2021 | December 31, 2020 | ||||||||||||||||||||
Net loss per share available to common stockholders—basic and diluted, as reported | $ | (1.27) | $ | (0.40) | $ | (2.88) | $ | (0.85) | |||||||||||||||
Repacking costs attributable to COVID-19 | — | — | — | 0.11 | |||||||||||||||||||
Inventory write-offs and reserves attributable to COVID-19 | — | 0.06 | — | 0.08 | |||||||||||||||||||
Product donations attributable to COVID-19 relief efforts | — | — | — | 0.04 | |||||||||||||||||||
| Loss on extinguishment of debt | — | — | 0.01 | 0.02 | |||||||||||||||||||
Adjusted net loss per diluted common share | $ | (1.27) | $ | (0.34) | $ | (2.87) | $ | (0.60) | |||||||||||||||
The following table presents the reconciliation of Adjusted EBITDA to its most comparable GAAP measure, net loss, as reported (unaudited):
| Three Months Ended | Year Ended | |||||||||||||||||||||||||
| (in thousands) | December 31, 2021 | December 31, 2020 | December 31, 2021 | December 31, 2020 | ||||||||||||||||||||||
| Net loss, as reported | $ | (80,371) | $ | (25,077) | $ | (182,105) | $ | (52,752) | ||||||||||||||||||
| Income tax expense | 33 | 2 | 60 | 72 | ||||||||||||||||||||||
| Interest expense | 992 | 613 | 3,648 | 2,576 | ||||||||||||||||||||||
Depreciation and amortization expense | 6,753 | 4,023 | 21,663 | 13,299 | ||||||||||||||||||||||
Restructuring expenses(1) | 3,726 | 402 | 15,794 | 6,430 | ||||||||||||||||||||||
| Share-based compensation expense | 6,074 | 6,902 | 27,698 | 27,279 | ||||||||||||||||||||||
Expenses attributable to COVID-19(2) | — | 3,719 | — | 14,137 | ||||||||||||||||||||||
Other, net(3) | (144) | (70) | 487 | 759 | ||||||||||||||||||||||
| Adjusted EBITDA | $ | (62,937) | $ | (9,486) | $ | (112,755) | $ | 11,800 | ||||||||||||||||||
| Net loss as a % of net revenues | (79.8) | % | (24.6) | % | (39.2) | % | (13.0) | % | ||||||||||||||||||
Adjusted EBITDA as a % of net revenues | (62.5) | % | (9.3) | % | (24.3) | % | 2.9 | % | ||||||||||||||||||
____________
| (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 $3.7 million in costs attributable to COVID-19, stemming from inventory write-offs and reserves associated with foodservice products determined to be unsalable in the three months ended December 31, 2020, and $14.1 million in costs attributable to COVID-19 consisting of $6.6 million in product repacking costs, $4.8 million in inventory write-offs and reserves associated with foodservice products determined to be unsalable, and $2.7 million in product donation costs related to our COVID-19 relief efforts in the twelve months ended December 31, 2020. | ||||
| (3) | Includes $1.0 million in loss on extinguishment of debt associated with termination of the Company’s credit facility in the year ended December 31, 2021 and $1.5 million in loss on extinguishment of debt associated with the Company’s refinanced credit arrangements in the year ended December 31, 2020. | ||||
Investor Presentation (NASDAQ: BYND) February 24, 2022
Certain statements in this presentation 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 ultimate duration, magnitude and effects of the pandemic and, in particular, the impact to the foodservice channel, operations and supply chains, 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 var iations 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, in particular, the COVID-19 pandemic, 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 outbreaks (such as COVID-19), including on our business, financial condition, cash flow and results of operations, including on our supply chain, the demand for our products, our product and channel mix, labor needs at the Company as well as in the supply chain at customers, the timing and level of retail purchasing, the timing and level of foodservice purchasing, our manufacturing and co-manufacturing facilities and operations, our inventory levels, our ability to expand and produce in new geographic markets or the timing of such expansion efforts, the pace and success of new product introductions, the timing of new foodservice launches, and on overall economic conditions and consumer confidence and spending levels; the impact of uncertainty in our domestic and international supply chain, including labor shortages and disruption and shipping delays and disruption; a resurgence of COVID-19 and the impact of variants of the virus that causes COVID-19 which could slow, halt or reverse the reopening process, or result in the reinstatement of social distancing measures, business closures, restrictions on operations, quarantines and travel bans; the impact of uncertainty as a result of doing business in China and Europe; government or employer mandates requiring certain behaviors from employees due to COVID-19, including COVID-19 vaccine mandates, which could result in employee attrition at the Company, suppliers and customers as well as difficulty securing future labor needs; the impact of adverse and uncertain economic and political conditions in the U.S. and international markets; the volatility of capital markets and other macroeconomic factors; our ability to effectively manage our growth in the U.S. and abroad; our ability to identify and execute cost-down initiatives intended to achieve price parity with animal protein; the success of operations conducted by joint ventures, such as The PLANeT Partnership, LLC with PepsiCo, Inc., where we share ownership and management of a company with one or more parties who may not have the same goals, strategies or priorities as we do and where we do not receive all of the financial benefit; the effects of increased competition from our market competitors and new market entrants; changes in the retail landscape, including the timing and level of trade and promotion discounts, our ability to grow market share and increase household penetration, repeat buying rates and purchase frequency, and our ability to maintain and increase sales velocity of our products; changes in the foodservice landscape, including the timing and level of marketing and other f inancial incentives to assist in the promotion of our products, our ability to grow market share and attract and retain new foodservice customers or retain existing foodservice customers, and our ability to introduce and sustain offering of our products on menus; the timing and success of distribution expansion and new product introductions in increasing revenues and market share; the timing and success of strategic partnership launches and limited time offerings resulting in permanent menu items; our estimates of the size of market opportunities and ability to accurately forecast market growth; our ability to effectively expand our manufacturing and production capacity, including effectively managing capacity for specific products; our ability to accurately forecast our future results of operations, including fluctuations in demand for our products and any increased competition; our ability to accurately forecast demand for our products and manage our inventory, including the impact of customer orders ahead of holidays and shelf reset activities, and supply chain and labor disruptions; our operational effectiveness and ability to fulfill orders in full and on time; variations in product selling prices and costs, and the mix of products sold; our ability to successfully enter new geographic markets, manage our international expansion and comply with any applicable laws and regulations, including risks associated with doing business in foreign countries, substantial investments in our manufacturing operations in China and The Netherlands, and our ability to comply with the U.S. Foreign Corrupt Practices Act or other anti-corruption laws; the effects of global outbreaks of pandemics or contagious diseases or fear of such outbreaks, such as COVID-19; 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 at competitive prices to manufacture our products; the availability of pea and other protein that meets our standards; our abili ty to diversify the protein sources used for our products; our ability to differentiate and continuously create innovative products, respond to competitive innovation and achieve speed-to-market; our ability to successfully execute our strategic initiatives; the volatility associated with ingredient, packaging, transportation and other input costs; the impact of inflat ion across the economy, including higher food, grocery, transportation and fuel costs; real or perceived quality or health issues with our products or other issues that adversely affect our brand and reputation; our ability to accurately predict consumer taste preferences, trends and demand and successfully innovate, introduce and commercialize new products and improve existing products, including in new geographic markets; significant disruption in, or breach in security of our information technology systems and resultant interruptions in service and any related impact on our reputation, including related to data privacy; the ability of our transportation providers to ship and deliver our products in a timely and cost effective manner; management and key personnel changes, the attraction and retention of qualified employees and key personnel, and our ability to maintain our company culture as we grow; risks related to use of a professional employer organization to administer human resources, payroll and employee benefits functions for certain of our international employees or use of certain third party service providers for the performance of several business operations including payroll and human capital management services; the effects of natural or man-made catastrophic or severe weather 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 Disclaimer 2
regarding our products, brand and the plant-based industry category; the effectiveness of our internal controls; the requirements of being a public company and effects of increased administration costs related to compliance and reporting obligations; our significant indebtedness and ability to pay such indebtedness; risks related to our debt, including limitations on our cash flow from operations and our ability to satisfy our obligations under the convertible senior notes; our ability to raise the funds necessary to repurchase the convertible senior notes for cash, under certain circumstances, or to pay any cash amounts due upon conversion; provisions in the indenture governing the convertible senior notes delaying or preventing an otherwise beneficial takeover of us; any adverse impact on our reported financial condition and results from the accounting methods for the convertible senior notes; estimates of our expenses, future revenues, capital expenditures, capital requirements and our needs for additional financing; our ability to meet our obligations under our campus headquarters lease, the timing of occupancy and completion of the build-out of our space, cost overruns, delays and the impact of COVID-19 on our space demands; our ability to meet our obligations under leases for our corporate offices, manufacturing facilities and warehouses; changes in laws and government regulation affecting our business, including Food and Drug Administration and Federal Trade Commission governmental regulation, and state, local and foreign regulation; new or pending legislation, or changes in laws, regulations or policies of governmental agencies or regulators, both in the U.S. and abroad, affecting plant-based meat, the labeling or naming of our products, or our brand name or logo; the failure of acquisitions and other investments to be efficiently integrated and produce the results we anticipate; risks inherent in investment in real estate; 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; our ability and the ability of our suppliers and co-manufacturers to comply with food safety, environmental or other laws and regulations; seasonality, including increased levels of purchasing by customers ahead of holidays, customer shelf reset activity and the timing of product restocking by our retail customers; the sufficiency of our cash and cash equivalents to meet our liquidity needs and service our indebtedness and our ability to access capital markets upon favorable terms; economic conditions and the impact on consumer spending; impact of increased scrutiny from stakeholders and institutional investors on environmental, social and governance practices; outcomes of legal or administrative proceedings, or new legal or administrative proceedings filed against us; our, our suppliers’ and our co-manufacturers’ ability to protect our proprietary technology and intellectual property adequately; the impact of tariffs and trade wars; the impact of changes in tax laws; foreign exchange rate fluctuations; and the risks discussed under the heading “Risk Factors” in the Company’s Quarterly Report on Form 10-Q for the quarter ended October 2, 2021 filed with the SEC on November 12, 2021, and in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021 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 presentation. 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. Our historical results are not necessarily indicative of the results to be expected for any future periods and our operating results for the three and twelve months ended December 31, 2021 are not necessarily indicative of the results that may be expected for any other interim periods or any future year or period. This presentation also contains estimates and other statistical data obtained from independent parties and by us relating to market size and growth and other data about our industry and ultimate consumers. The number of retail and foodservice outlets are derived from data through December2021. This data involves a number of assumptions and limitations, and you are cautioned not to give undue weight to such estimates and data. In addition, projections, assumptions and estimates of our future performance and the future performance of the geographic and other markets in which we operate are necessarily subject to a high degree of uncertainty and risk. All information included in this presentation is unaudited. “Beyond Meat,” “Beyond Burger,” “Beyond Sausage,” “Beyond Breakfast Sausage,” “Beyond Breakfast Sausage Links,” “Beyond Breakfast Sausage Patties,” “Beyond Meatballs,” “Beyond Chicken Tenders,” the Caped Steer Logo, “Go Beyond,” “Eat What You Love” and “The Future of Protein” are registered trademarks of Beyond Meat, Inc. in the United States and, in some cases, in certain other countries. All other brand names or trademarks appearing in this presentation are the property of their respective holders. Solely for convenience, the trademarks and trade names in this presentation are referred to without the ®and ™symbols, but such references should not be construed as any indicator that their respective owners will not assert, to the fullest extent under applicable law, their rights thereto. 3 Disclaimer (continued)
Beyond 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 purposes. Management also believes these measures are widely used by investors, securities analysts, rating agencies and other parties in evaluating companies in our industry as a measure of our operational performance. 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 and Adjusted net loss per diluted common share Adjusted net loss is defined as net loss adjusted to exclude, when applicable, costs attributable to COVID-19, 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 per diluted common share is defined as Adjusted net loss divided by the number of diluted common shares outstanding. We consider Adjusted net loss and Adjusted net loss per diluted common share to be useful indicators of operating performance because excluding special items allows for period-over-period comparisons of our ongoing operations. Adjusted net loss 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 adjusted to exclude, when applicable, income tax (benefit) expense, interest expense, depreciation and amortization expense, restructuring expenses, share-based compensation expense, expenses attributable to COVID-19, and Other, net, including interest income, loss on extinguishment of debt and foreign currency transaction gains and losses. Adjusted EBITDA as a % of net revenues is defined as Adjusted EBITDA divided by net revenues. Refer to pages 20-22 for a reconciliation of these non-GAAP financial measures to their closest comparable GAAP measures. 4 Non-GAAP Financial Measures
Business Overview
We Use Proprietary Science to Redefine Meat Beyond Meat’s Proprietary Technology & Process are Used to Replicate Animal Meat’s Principal Components from Plant Proteins 6 We begin with meat’s COMPOSITION versus its animal ORIGIN Then replicate its core structure & sensory experience Microscopy Comparing Beyond Sausage to Pork Sausage Actual Images of the Beyond Burger and Ground Beef Scanning Electronic Microscopy Confocal Laser Microscopy Beyond Sausage Pork Sausage Raw Cooked Beyond Burger Ground Beef
29% Of the water in agriculture is directly or indirectly used for animal production 3 78% Of all agricultural land is used for livestock, including grazing land and cropland dedicated to the production of feed4 30% Of most cancers in developed countries attributed to dietary factors, including consumption of certain meats2 We are Committed to Providing Products that Enable Consumers to Eat What You Love® 7 42% Reduced risk of developing heart failure associated with people who eat a mostly plant-based diet1 18-51% Of global greenhouse gas emissions driven by livestock rearing and processing3 60 - 70 Billion Farm animals reared for food each year5 With current food production systems threatening both human health and environmental sustainability, plant-based diets offer a growing global population a solution of healthy diets and sustainable food systems6 1 Plant Based Diet Associated with Less Heart Failure Risk Report, presented at the American Heart Association scientific meeting, November 13, 2017. 2 Key, Timothy J. et al., Diet, nutrition and the prevention of cancer, Scientific background papers of the joint WHO/FAO expert consultation, Geneva, 28 January - 1 February 2002, Public Health Nutrition, Vol 7, No. 1(A), Supplement 1001, February 2004. 3 Reprinted from Water Resources and Industry, Volumes 1–2, March–June 2013, P.W. Gerbens-Leenes, M.M. Mekonnen, A.Y. Hoekstra, The water footprint of poultry, pork and beef: A comparative study in different countries and production systems, Page No. 26, Copyright (2013), with permission from Elsevier. 4 Livestock’s Long Shadow-Environmental Issues and Options, Food and Agriculture Organization of the United Nations, 2006. 5 Compassion in World Farming, Strategic Plan 2013-2017. 6 Food in the Anthropocene: the EAT–Lancet Commission on healthy diets from sustainable food systems, 2019.
Innovation is at the Core of our Company and is a Key Differentiator 8 Innovation Strategy Led by Highly Respected Team of Scientists State-of-the-Art Innovation Center • Large, experienced team composed of scientists, engineers, researchers, technicians, and chefs • Work seamlessly with internal chefs and food technologists to ensure the best quality in terms of taste, texture, and other sensory attributes • R&D Application Lab • Color / Encapsulation Lab • Analytical Lab • Chemical Lab • Microbiology / Fermentation Lab • Pilot Plant • Test Kitchen 30,000 Sq. Ft Manhattan Beach Project Innovation Center (El Segundo, CA) R&D as a % of Net Revenue (Most Recent FY)1 Beyond Meat’s products are driven by proprietary technology and a relentlessly focused innovation team 1 Data derived from public filings 2 Kellogg is the parent company of Morningstar Farms 3 WH Group is the parent company of Smithfield Foods 4 Kraft Heinz is the parent company of Boca Burger 5 Conagra is the parent company of Gardein
Recent Notable Updates
$1.4tn Size of the Global Meat Category1 Our Approach to Product and Strategy has Made Us a Leading Disruptor in the Meat Category 10 We are Disrupting the Largest Category in Food 1 According to Fitch Solutions Macro Research, a division of Fitch Solutions, research data, August 6, 2018. 2 As of end of Q4 2021, as compared to end of Q4 2020. 3 Includes Canada. Net Revenues ($ Millions) $270bn Size of the U.S Meat Category1 Beyond Meat is the Future of Protein 14% 2020 FY - 2021 FY Revenue YoY Growth ~1.3x Increase in Manufacturing Capacity2 ~34,000 U.S Stores Retail Rollout ~58,000 International Outlets Retail and Foodservice Rollout3 ~38,000 U.S Outlets Foodservice Rollout ~130,000 Total Outlets Worldwide
Total Distribution and Brand Awareness 11 1 Totals may not add up due to rounding. 2 Presentation of International distribution outlets now includes Canada, which was historically combined with US distribution. 3 Unaided brand awareness represents results of the answer to, “what brands, if any, come to mind when you think of meat alternative products?” At IPO based on October 2018 survey of 1,004 people, January 2022 based on January 2022 survey of 1,004 people. 4 Total brand awareness represents the answer to “what brands, if any, come to mind when you think of meat alternative products?” and “which of the following meat alternative brands have you heard of before today?” At IPO based on October 2018 survey of 1,004 people, January 2022 based on January 2022 survey of 1,004 people.
U.S. Retail Velocity and Market Share Trends 12 Source: SPINS Data through December 26, 2021 1 Includes aggregate data for Beyond Meat products across all Frozen and Refrigerated Plant-Based Meats in the US MULO channel only 2 Includes aggregate data for Beyond Meat products across all Frozen and Refrigerated Plant-Based Meats in both the US MULO and US Natural Enhanced Channels * Growth in total distribution points (TDP) for the Beyond Meat brand was up 23%, 23% and 25% year-over-year for the 52-week, 12-week and 4-week periods ended December 26, 2021, respectively 1 2
Sales by Distribution Channel 13 U.S Retail Net Revenues ($ Millions) U.S Foodservice International Select Customers Select Highlight Retail points of distribution across the United States carrying Beyond Meat products ~17,000 At IPO ~34,000 December 2021 Net Revenues ($ Millions) Net Revenues ($ Millions) Select Customers Select Highlight Foodservice outlets across the United States carrying Beyond Meat products ~12,500 At IPO Select Customers Select Highlight International Retail and Foodservice outlets carrying Beyond Meat products ~1,650 At IPO ~38,000 December 2021 ~58,000 December 2021
Recent Notable Updates Beyond Meat Rapid & Relentless Innovation Program Is Designed to Make Our Existing Products Obsolete, Generate New Products & Platforms, and Serve A Widening Circle of Customers Customers Products International 14 We continue to expand our foodservice partnerships, with the announcement of new or expanded customer relationships We continue to focus on innovation, including rollouts of both new and enhanced product offerings Multiple new product launches / enhancements over the past 2 years Beyond Breakfast Sausage Links (2020) Beyond Meatballs (2020) Beyond Breakfast Sausage Patties (2020) Beyond Burger 3.0 (2021) International Supply ChainFebruary 2022 US Expanded Test1 Beyond Beef 3.0 (2021) Available in more than 90 countries worldwide Other Notable Highlights: • Successfully qualified and operationalized the Company’s highest-throughput extruders in The Netherlands and China Established 1st extrusion facility outside of the U.S in Enschede, The Netherlands (Commenced commercial extrudate production in Q4 2021) Opened new state-of-the-art manufacturing facility in Jiaxing, China (Established end-to-end commercial production in Q4 2021) April 2021 US Permanent Item February 2022 Canada Nationwide LTO August 2021 US (California) New Menu Offering January 2022 US Nationwide LTO January 2022 Canada Nationwide Permanent Item Beyond Chicken Tenders (2021) 1 In addition to the US limited time offering, McDonald’s Corporation currently offers menu items featuring Beyond Meat burger patties at its locations throughout the U.K. and Ireland.
Financial Update
• Net revenues decreased 1.2% to $100.7 million. Increased U.S. foodservice and international channel net revenues were more than offset by reduced U.S. retail channel net revenues. The decrease in U.S. retail channel net revenues primarily reflected softer demand, five fewer shipping days compared to Q4 2020, increased trade discounts, and, to a lesser extent, loss of market share. Increases in U.S. foodservice and international channel net revenues were primarily attributable to higher demand from existing outlets, new product introductions, and expansion of distribution, partially offset by increased trade discounts. • Adjusted gross margin decreased to 14.1% from 28.5% primarily due to changes in revenue per pound due to product mix and increased trade discounts, combined with increases in per unit manufacturing costs including depreciation, logistics costs, inventory write-offs and reserves, partially offset by reduced per unit direct materials costs. • Loss from operations was $77.7 million primarily driven by the decline in gross profit, combined with higher operating expenses primarily due to increased investments in marketing activities, general and administrative expenses, primarily driven by higher professional services fees related to recently established consulting agreements, growth in overall headcount levels, increased production trial activities, and higher restructuring expenses primarily reflecting increased legal costs. Q4 2021 Performance Update 16 Highlights 1 Unaudited 2 See appendix for reconciliation of Adjusted gross profit, Adjusted gross margin, Adjusted net loss, Adjusted EBITDA and Adjusted EBITDA as a % of net revenues.
Net Revenue by Channel 17 Net Revenue by Channel 1 Unaudited Full Year 2021 Highlights 2018 2019 2020 20211 U.S Retail 97% 160% 104% (8%) U.S Foodservice 231% 240% (14%) 26% International Retail 445% 1,432% 136% 123% International Foodservice 1,859% 403% (45%) 40% Consolidated 170% 239% 37% 14% YoY Change (%) • Achieved double-digit growth in net revenues despite challenging operating environment: ◦ U.S. foodservice channel net revenues rebounded solidly to a record $76 million following 2020 weakness driven by COVID-19 ◦ Generated strong, double-digit growth in international channel net revenues in 2021 ◦ Multiple levers for growth remain, including foodservice channel distribution growth, international penetration and new product innovations • Continued to support future growth through incremental investments in operations, innovation, marketing, and strategic customer partnerships ($ Millions)
1 See appendix for reconciliation of Adjusted EBITDA 2 Restructuring expenses are included in SG&A operating expenses Gross Margin and Operating Expense Update 18 • Gross margin decreased to 25.2% from 30.1% primarily due to changes in revenue per pound due to product mix and increased trade discounts, combined with per unit increases in manufacturing costs including depreciation, and logistics costs, partially offset by lower direct materials costs per unit. • Operating expenses were higher primarily due to growth in overall headcount levels, increased general and administrative expenses, primarily reflecting higher professional services fees, increased investments in marketing activities, increased production trial activities, and higher restructuring expenses reflecting increased legal costs. Gross Profit and Margin Full Year 2021 HighlightsOpEx and OpEx % of Net Revenues ($ millions) Adjusted EBITDA1 ($ millions) ($19.3) $25.3 $11.8 ($112.8) 42.2% 62.9% ($ millions) Gross Margin Operating Expenses2 as % of Net Revenues R&D as % of Net Revenues 7.8% 14.4% 20.0% 33.5% 30.1% 25.2%
Appendix
Reconciliation of Non-GAAP Financial Measures Reconciliation of Adjusted gross profit, Adjusted gross margin and Adjusted net loss (unaudited) 20
Reconciliation of Non-GAAP Financial Measures Reconciliation of Adjusted net loss per diluted common share (unaudited) 21
1Primarily 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. 2Comprised of $3.7 million in costs attributable to COVID-19, stemming from inventory write-offs and reserves associated with foodservice products determined to be unsalable in the three months ended December 31, 2020, and $14.1 million in costs attributable to COVID-19 consisting of $6.6 million in product repacking costs, $4.8 million in inventory write-offs and reserves associated with foodservice products determined to be unsalable, and $2.7 million in product donation costs related to our COVID-19 relief efforts in the twelve months ended December 31, 2020. 3Includes $1.0 million in loss on extinguishment of debt associated with termination of the Company’s credit facility in the year ended December 31, 2021 and $1.5 million in loss on extinguishment of debt associated with the Company’s refinanced credit arrangements in the year ended December 31, 2020. Reconciliation of Non-GAAP Financial Measures Reconciliation of Adjusted EBITDA (unaudited) 22
