EL SEGUNDO, Calif. - Beyond Meat, Inc. (NASDAQ:BYND) reported third-quarter 2024 results that beat analyst expectations, but shares fell 6% as revenue growth failed to excite investors.
The plant-based meat company posted adjusted earnings per share of -$0.41, surpassing the analyst estimate of -$0.48. Revenue for the quarter came in at $81.01 million, slightly above the consensus estimate of $80.13 million and up 7.6% YoY.
Despite the earnings beat, Beyond Meat's revenue growth of 7.6% YoY appears to have disappointed investors, leading to the stock's decline. The company saw a 7.1% decrease in volume of products sold, partially offsetting a 15.8% increase in net revenue per pound.
U.S. retail channel net revenues increased 14.6% to $35.0 million, while U.S. foodservice channel net revenues rose 15.5% to $14.5 million. International retail channel net revenues grew 17.0% to $16.6 million, but international foodservice channel net revenues decreased 17.2% to $15.0 million.
Beyond Meat President and CEO Ethan Brown commented, "We are pleased to report that in the third quarter we returned to growth, increasing net revenues on a year-over-year basis, while continuing to expand gross margin and reduce operating expenses on both a sequential and year-over-year basis."
The company's gross margin improved significantly, reaching 17.7% compared to -9.6% in the year-ago period. Beyond Meat also reduced its net loss to $26.6 million, or $0.41 per share, from $70.5 million, or $1.09 per share, in the same quarter last year.
Looking ahead, Brown stated, "We expect to increase our cash reserves by year-end and pursue further balance sheet restructuring in 2025."
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