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A Peek Into Beyond Meat Revenue Breakdown and Growth Rates

Grilling plant-based meat. Image source: Flickr Image.

The reason I am covering Beyond Meat (NASDAQ:BYND) in this article is that it is one of the most interesting companies in the world.

For readers who haven’t heard of Beyond Meat, it’s one of the fastest-growing companies in the United States and possibly in the world, offering a portfolio of revolutionary plant-based meat.

The company literally manufactures meat right out of its factories, but with plant-based protein instead of with animal-based meat.

According to Beyond Meat, its technology has enabled consumers to experience the same taste, texture and other sensory attributes of animal-based meat products as the company’s plant-based meat products, but minus all the hormones and antibiotics that are typically found in animal-based products.

The success of Beyond Meat’s breakthrough innovation and the variety of products has positioned the company to directly compete in the $1.4 trillion global meat industry.

That said, this article explores Beyond Meat’s revenue and briefly looks into the company’s different business channels and their respective sales.

Also, we will look at the growth of the company based on its historical revenues on a quarterly and yearly basis.

Other than yearly and quarterly revenue, this article also dives into the topics of revenue breakdown by channel and by region (country) to see where Beyond Meat’s growth is headed in the United States as well as internationally.

Let’s read on!

Beyond Meat’s Annual Revenue

Beyond Meat annual net revenue

Beyond Meat annual net revenue

* Annual revenue is a GAAP measure and is shown as reported in Beyond Meat’s financial statements.

First off, we will look at Beyond Meat’s annual revenue for the past 3 years from 2017 to 2020 to find out how the company’s sales have performed on a yearly basis.

Beyond Meat’s annual net revenues as shown in the above chart is the aggregate of net sales generated from all of the company’s distributing channels and is net of all promotions, rebates and discounts given to customers.

According to the chart, Beyond Meat’s annual revenue has been on an exponential growth from 2017 to 2020, recording year over year growth rates of 239% and 37% in 2019 and 2020, respectively.

Beyond Meat’s annual revenue broke the $100 million barriers for the first time in 2019 and reached a record number of $298 million.

As of the 4th quarter of 2020, Beyond Meat’s annual net revenues grew $100 million higher compared to a year ago to slightly more than $400 million.

Between 2017 and 2020, Beyond Meat’s annual sales have grown more than 10X, an extraordinary feat for a company that has faced multiple challenges, including the COVID-19 pandemic.

According to the data from Fitch Solutions‘ macro research, the meat industry is the largest category in the food sector, generating an estimated sales of approximately $270 billion in the U.S. or $1.4 trillion globally in 2017 alone.

With a total annual sales of only $400 million in 2020, Beyond Meat’s sales in the US and the global meat industry represents less than 1% of the total market share.

With this in context, Beyond Meat’s growth story is just starting to unfold and there will be plenty of opportunities going forward, particularly in a world where consumers have become more health-conscious.

The growing awareness of the negativities associated with eating animal-based products, including climate change and diseases, will definitely help to bolster Beyond Meat’s expansion into the protein industry.

Beyond Meat’s Net Revenue (Quarterly)

Beyond Meat quarterly net revenue

Beyond Meat quarterly net revenue

* Quarterly net revenue is a GAAP measure and is shown as reported in Beyond Meat’s annual and quarterly statements.

From a quarterly perspective, Beyond Meat’s quarterly net revenue has also been on an exponential growth from 2018 to 2020, reaching a record high of $113 million in Q2 2020.

The 2Q 2020 quarter represents a year-over-year growth rate of a whopping 69% or 16% sequentially, making it the best quarter ever.

While Beyond Meat reported fewer sales at $94 million in 3Q 2020 compared to the prior quarter, it was still one of the best quarters ever when the year-on-year growth rate came to about 2.7%.

As of 2020 Q4, Beyond Meat’s quarterly revenue reached slightly over $100 million, which was 3.6% higher than a year ago despite being negatively impacted by the COVID-19 pandemic.

According to Beyond Meat, the company’s foodservice and restaurant segment has negatively been affected, 3Q and 4Q 2020 in particular, due mainly to the stay-at-home restrictions in not only the U.S. but also globally.

However, Beyond Meat saw its retail channel exploding in sales, primarily driven by panic buying as a result of the COVID-19 outbreak.

Beyond Meat’s Net Revenue (TTM)

Beyond Meat TTM net revenue

Beyond Meat TTM net revenue

* TTM net revenue is a GAAP measure and is the sum of the trailing 12-month or 4-quarter net revenues.

To clearly see Beyond Meat’s net revenue growth on a long-term basis, we will look at the trailing 12-month or TTM plot as shown above for the period from 2018 to 2020.

From a TTM perspective, Beyond Meat’s net revenue reached a record high of $407 million as of Q4 2020, representing a year-over-year growth rate of 37%.

On a long-term basis, Beyond Meat TTM revenue has been rising both sequentially and year over year.

However, the TTM plot shows that most of the growth occurred in 2018 and 2019.

In 2020, Beyond Meat’s total sales have slowed down quite substantially as reflected in the plateauing curve in the chart.

While Beyond Meat may have moved sales a little slower in the 2nd half of 2020, due primarily to consumers’ freezer loading in the 1st half, its long-term growth prospect remains intact, according to the company.

Again, Beyond Meat’s slower sales in the 2nd half of 2020 were only a temporary setback as important brand metrics such as household penetration, buyer rates, purchase frequency and repeat sales have all been registering uninterrupted growth throughout 2020.

Beyond Meat’s CEO, Ethan Brown remains optimistic about the company’s future and will continue to press forward in providing consumers with great-tasting plant-based meats, made without the use of GMOs, bioengineered ingredients, hormones, antibiotics and cholesterol, according to its 4th Quarter Earnings Release.

Beyond Meat’s Revenue Breakdown by Distributing Channel (Yearly)

Beyond Meat annual revenue by channel

Beyond Meat annual revenue by channel

* Net revenue by channel is a GAAP measure and is shown as reported in Beyond Meat’s annual and quarterly statements.

Beyond Meat operates on 2 distributing channels, and they are:

(1) Retail, and
(2) Restaurant and Foodservice.

As of Dec 2020, Beyond Meat’s plant-based products are available in approximately 28,000 retail outlets and 42,000 foodservice locations in the United States alone.

Internationally, Beyond Meat’s distributing channels consist of 34,000 retail outlets and 18,000 foodservice locations according to the 4Q 2020 Investor Presentation slide.

In terms of revenue breakdown by distributing channel, Beyond Meat’s retail sales came to only $25 million in 2017 whereas its foodservice revenue was even lower at only $7 million in the same year.

However, Beyond Meat’s restaurant and foodservice revenue took off and grew more than 500% in 2018 alone to $37 million.

In the same year, its retail channel doubled in sales to $50 million.

By 2019, Beyond Meat’s restaurant and foodservice sales reached a whopping $153 million compared to only $145 million in sales from the retail channel.

While 2019 may have been a great year for Beyond Meat’s restaurant and foodservice sales, it was not the case in 2020.

In 2020, Beyond Meat’s foodservice revenue plummeted badly to only $106 million.

On the contrary, Beyond Meat’s retail sales reached a record high at more than $300 million by the 4th quarter of 2020 which was more than 3X the number of foodservice channel sales.

The surge in retail sales was driven primarily by panic buying in the 1st half of 2020.

On the other hand, restaurants and foodservice outlets were negatively disrupted when stay-at-home orders were enforced.

Beyond Meat’s Revenue Breakdown by Distributing Channel (Quarterly)

Beyond Meat quarterly revenue by channel

Beyond Meat quarterly revenue by channel

* Net revenue by channel is a GAAP measure and is shown as reported in Beyond Meat’s annual and quarterly statements.

The chart above shows Beyond Meat’s revenue breakdown by distributing channels for the period from 2019 to 2020 on a quarterly basis.

This chart is similar to the annual plot which was seen in prior discussion but was broken down into quarterly data.

From a quarterly perspective, Beyond Meat’s sales from restaurant and foodservice had surged throughout 2019 and overtaken that of the retail segment by the 4th quarter.

However, the foodservice’s growth came to a halt starting in 1Q 2020 and continued to decline in subsequent quarters.

According to the chart, Beyond Meat made only $13 million in sales from foodservice outlets in 2Q 2020, which was less than half the number reported a year ago.

While the foodservice revenue improved to $27 million by the 4th quarter of 2020, it was a far cry from the $58 million reported a year ago.

In contrast, Beyond Meat’s retail sales revenue continued to climb throughout 2020 although the COVID-19 pandemic was at its peak.

Beyond Meat’s retail sales were seen reaching nearly $100 million in 2020 Q2 alone, the best quarter ever.

In the 2nd half of 2020, Beyond Meat’s retail sales slightly dropped from quarter to quarter but were still up significantly year over year.

By 4Q 2020, Beyond Meat’s quarterly retail sales totaled $75 million, more than an 80% jump from the quarter a year ago.

As mentioned, panic buying and freezer loading had been the root cause that led to the surge in Beyond Meat’s retail revenue.

When these effects subsided in the 2nd half of 2020, Beyond Meat’s retail sales revenue followed suit.

Beyond Meat’s Revenue Breakdown by Region (Yearly)

Beyond Meat annual revenue by region

Beyond Meat annual revenue by region

* Net revenue by region is a GAAP measure and is shown as reported in Beyond Meat’s annual and quarterly statements.

According to Beyond Meat’s financial statements, there are only two regions or countries being disclosed in terms of the breakdown of sales, and the regions are:

(1) The United States, and
(2) International (inclusive of Canada).

Prior to 2020, the sales from Canada were lumped together with that from the United States.

However, starting in 1Q 2020, Beyond Meat has put the sales from Canada under the International category, which is separately different from that of the U.S.

All told, Beyond Meat’s U.S. sales were seen surging to an all-time high of $325 million in 2020 compared to only $200 million reported in 2019.

International sales declined considerably to $82 million in 2020 compared to $98 million reported in 2019.

In terms of growth rates, Beyond Meat’s U.S. revenue grew 63% year over year in 2020 compared to a decline of 16.5% for International revenue in the same year.

Beyond Meat’s International sales grew more than 400% in 2019 as opposed to a decline in 2020.

Understandably, the decline in international sales has been largely driven by the negative impact of the COVID-19 pandemic on Beyond Meat’s supply chain.

While the company’s international revenue has declined substantially in 2020, it was not the case for its U.S. sales.

In fact, Beyond Meat’s U.S. sales defied the odds and pressed ahead to reach a record high of more than $300 million in 2020.

Beyond Meat’s Revenue Breakdown by Region (Quarterly)

Beyond Meat quarterly revenue by region

Beyond Meat quarterly revenue by region

* Net revenue by region is a GAAP measure and is shown as reported in Beyond Meat’s annual and quarterly statements.

The chart above shows Beyond Meat’s revenue breakdown by region or by country on a quarterly basis.

Let’s look at International sales first.

Internationally, Beyond Meat’s global revenue outside of the U.S. was seen peaking in 2019 4Q at $36.5 million.

Since then, the company’s international sales have been sliding in subsequent quarters towards its all-time low of $16 million reported in 3Q 2020.

Beyond Meat managed to improve its international revenue to $24.5 million in Q4 2020 from the prior quarter.

However, its international revenue was still a drop of more than 30% year over year in the latest quarter.

On the flipped side, Beyond Meat’s U.S. sales have been trending higher since 1Q19, reaching a record high at $96.5 million in 2Q 2020.

In subsequent quarters, Beyond Meat’s revenues from the U.S. were seen tapering down and reached $77 million in the 4th quarter of 2020.

Beyond Meat’s U.S. revenue seemed unstoppable, climbing year over year, despite experiencing the full brunt of the COVID-19 disruption in the U.S. food industry.

This scenario was most likely driven by the growth in the retail channel in the U.S.

All in all, the United States has been the largest sales market for Beyond Meat.

Beyond Meat’s Net Revenue Sequential Growth Rates (QoQ)

Beyond Meat revenue QoQ growth rates

Beyond Meat revenue QoQ growth rates

* Sequential growht rates come from the author’s own calculation.

Sequentially, Beyond Meat has the most growth back in 2018 and 2019.

The company’s sequential growth was seen tapering down in most of the quarters in 2020, growing mostly in the high single-digit.

In 2020 Q4, Beyond Meat reported a quarterly growth rate of 8% as opposed to -16.7% reported in the prior quarter.

Moving forward, Beyond Meat expects to see seasonality effects, especially within the retail channel, with revenue contribution from this channel tending to be greater in the 2nd and 3rd quarter of the year.

The reason is largely due to a greater demand for certain products during the summer grilling season.

Beyond Meat’s Net Revenue Year Over Year Growth Rates (YoY)

Beyond Meat revenue YoY growth rates

Beyond Meat revenue YoY growth rates

* Year over year growht rates come from the author’s own calculation.

According to the chart above, Beyond Meat’s year-on-year growth looks significantly more impressive than the quarterly growth results.

For example, year over year growth rate in 2Q 2020 was a massive 68.5% as a result of the record-high net revenue of $113.3 million reported in the same quarter.

Nevertheless, year over year growth rate plunged to as low as 2.7% in 3Q 2020, due mainly to the freezer loading effect as mentioned in the prior discussion.

Beyond Meats year over year growth rates continued to stay low in Q4 2020 at only 3.5%, indicating that the freezer loading effect was still pretty much áffecting the company.

Additionally, there will also be a much greater seasonality effect moving forward when revenue growth slows down, meaning that a certain quarter of the year may report higher revenue growth compared to other quarters.

Conclusion

Judging from the revenue growth over the past 3 years, Beyond Meat has been phenomenal in growing its sales both in the U.S. and the international market.

However, we are seeing revenue decline in the restaurant and foodservice channel as well as in international sales since the beginning of 2020, mostly due to the COVID-19 outbreak which has impacted the distributing channels.

Additionally, the closure of restaurants and stay-at-home orders have badly impacted Beyond Meat’s foodservice channel revenue.

Despite the setback, Beyond Meat has continued to invest and expand for the long-term, according to its CEO.

For Beyond Meat, the company just needs to do what it has been doing which is bringing out more product varieties and keep the world known for its innovative mission of making the world a better place.

References and Credits

1. All financial figures such as the revenue, revenue by region and revenue by segment in this article weew obtained and referenced from Beyond Meat’s financial reports available in Beyond Meat SEC filings.

2. Some numbers are the author’s own calculations.

3. Featured images in this article are used under creative commons licenses and sourced from the following websites: Helen Alfvegren and Christoph Scholz.

Beyond Meat vs Impossible Buger

Plant-based meats are all the rage at the moment, with seemingly every restaurant offering either the Beyond or Impossible burger. There’s been a lot of discussion about how the two of them stack up against the real thing.

If you are a big fan of both the Beyond and Impossible burger and wanted to see how they compared to beef burgers when it came to taste, health and environmental impact (as well as a variety of other categories) …

Please head out to In-depth Guide to Plant-Based Meats.

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