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Beyond Meat Revenue Breakdown, Profitability And Margin

Grilling plant-based meat. Flickr Image.

Beyond Meat is a company that specializes in creating plant-based meat alternatives that closely mimic the taste, texture, and nutritional profile of real meat.

Founded in 2009 by Ethan Brown, Beyond Meat has quickly become one of the leading companies in the plant-based food industry, offering a wide variety of products that include burgers, sausages, ground beef, and chicken strips.

The company’s mission is to provide consumers with a more sustainable and ethical alternative to traditional animal-based meat while promoting healthier eating habits and reducing the environmental impact of meat production.

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

The success of Beyond Meat’s breakthrough innovation and the variety of products has positioned the company to compete directly 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 examine the company’s profitability and margins and talk about the outlook given by the company.

Let’s read on!

Please use the table of contents to navigate this page.

Table Of Contents

Overview And Definitions

O2. How Does Beyond Meat Earn Revenue
O3. Beyond Meat Business Model

Consolidated Revenue

A1. Revenue By Year
A2. Revenue By Quarter
A3. Revenue By TTM

Revenue Growth Rates

B1. Revenue Year-On-Year Growth Rates

Profit And Margins

C1. Gross Profit, Operating Profit, And Adjusted EBITDA
C2. Gross Margin, Operating Margin, And Adjusted EBITDA Margin

Revenue By Segment

D1. Retail And Food Service Revenue
D2. Retail And Food Service Revenue In Percentage
D3. Retail And Food Service Revenue YoY Growth Rates

Revenue By Region

E1. U.S. And International Revenue
E2. U.S. And International Revenue In Percentage
E3. U.S. And International Revenue YoY Growth Rates

Conclusion And Reference

S1. Conclusion
S2. References and Credits
S3. Disclosure

Definitions

To help readers understand the content better, the following terms and glossaries have been provided.

Adjusted EBITDA: Beyond Meat defines the adjusted EBITDA as net loss/income adjusted to exclude, when applicable, income tax expense, interest expense, depreciation and amortization expense, restructuring expenses, share-based compensation expense, and Other, net, including interest income and foreign currency transaction
gains and losses.

EBITDA stands for Earnings Before Interest, Taxes, Depreciation, and Amortization. It is a financial metric commonly used to evaluate a company’s operating profitability by calculating its earnings before accounting for non-operating expenses such as interest payments, taxes, depreciation, and amortization.

EBITDA is often used to measure a company’s overall financial performance because it provides a clearer picture of its ability to generate cash flow from its core operations.

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How Does Beyond Meat Earn Revenue

Beyond Meat is a plant-based meat producer that generates revenue by selling its products to grocery stores, restaurants, and other food service providers. The company’s primary source of revenue comes from its flagship product, the Beyond Burger, but it also offers other products such as Beyond Sausage, Beyond Beef, and Beyond Chicken.

Beyond Meat makes money by producing and selling its products at a premium price, typically higher than traditional meat-based products. The company also earns revenue through licensing agreements and partnerships with restaurants like Dunkin’ and McDonald’s.

Overall, Beyond Meat’s revenue is primarily generated through the sales of its plant-based meat products to various food service providers and the retail market.

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Beyond Meat Business Model

Beyond Meat’s business model is a prime example of innovation and sustainability in the food industry. The company has successfully disrupted the traditional meat market by creating plant-based meat products that look, cook, and taste like their animal-based counterparts. Beyond Meat’s flagship product, the Beyond Burger, has become a household name and has helped the company establish a strong foothold in the industry.

The company’s business model is centered around producing and selling its plant-based meat products at a premium price, typically higher than traditional meat-based products. This pricing strategy has allowed the company to generate high margins and reinvest in research and development to improve its products continually.

Beyond Meat’s proprietary technology and advanced ingredient sourcing have helped the company create plant-based meat products that are indistinguishable from traditional meat products. The company’s innovative marketing campaigns have also played a crucial role in creating awareness and driving product demand.

Beyond Meat’s partnerships with restaurants like Dunkin’ and McDonald’s, which offer Beyond Meat products on their menus, have helped the company expand its reach and generate additional revenue streams. The company’s licensing agreements with various food service providers have also enabled it to penetrate new markets and increase its market share.

Overall, Beyond Meat’s business model is an excellent example of how a company can disrupt a traditional market by using innovation, technology, and sustainability. The company’s mission to create delicious, nutritious, and sustainable plant-based meat products has resonated well with consumers. It has helped the company become one of the fastest-growing food companies in the world.

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Revenue By Year

Beyond-Meat-revenue-by-year

Beyond-Meat-revenue-by-year

(click image to expand)

* BYND’s fiscal year begins on Jan 1 and ends on Dec 31.

Beyond Meat’s net revenues in the chart are the total sales after discounts, promotions, and rebates.

Accordingly, Beyond Meat experienced the best revenue growth in the early years from fiscal 2017 to 2021 but started to decline in post-pandemic periods.

In fiscal 2022, Beyond Meat’s net revenues topped US$419 million, down 10% over 2021 but up 3% over 2020.

As of 2023, Beyond Meat’s net revenues are expected to decline by 20% year-over-year to reach US$335 million at the end of the fiscal year.

Although Beyond Meat has suffered serious setbacks since 2022 due to various issues, including the pandemic and supply chain disruptions, the opportunities ahead are massive.

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 total sales of just $400 million in 2022, Beyond Meat has less than 1% market share in the U.S. and the global meat industry.

Therefore, Beyond Meat’s growth story does not end here as there are plenty of opportunities ahead for the company, considering that the world is slowly becoming more environmentally and health-conscious, especially in the U.S.

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

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Revenue By Quarter

Beyond-Meat-revenue-by-quarter

Beyond-Meat-revenue-by-quarter

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* BYND’s fiscal year begins on Jan 1 and ends on Dec 31.

Beyond Meat earned US$75.3 million, US$102.1 million, and US$92.2 million in quarterly revenue in fiscal 3Q, 2Q, and 1Q 2023, respectively.

Beyond Meat’s quarterly revenue of US$75.3 million in 3Q 2023 represents a decline of 9% year-over-year and was at a record low in the post-pandemic periods.

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Revenue By TTM

Beyond-Meat-revenue-by-ttm

Beyond-Meat-revenue-by-ttm

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* TTM stands for trailing twelve months and is calculated by summing data from the past four quarters.
* BYND’s fiscal year begins on Jan 1 and ends on Dec 31.

Beyond Meat’s revenue growth occurred mainly in the earlier years between fiscal 2018 and 2020, as shown in the TTM plot above.

Beyond Meat’s revenue growth has decreased in the post-pandemic era, indicating a potential decline in the popularity of plant-based meat products.

As of 3Q 2023, Beyond Meat’s TTM revenue reached US$349.6 million, down 20% over the same quarter year ago, and has been at a record low since 2020.

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Revenue Year-On-Year Growth Rates

Beyond-Meat-revenue-YoY-growth-rates

Beyond-Meat-revenue-YoY-growth-rates

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* Growth rates are calculated using the TTM data.
* BYND’s fiscal year begins on Jan 1 and ends on Dec 31.

Beyond Meat’s year-over-year revenue growth rates have decreased from 250% in 2019 to -20.5% as of 3Q 2023. This illustrates a significant challenge the company faces.

In short, Beyond Meat’s revenue growth declined from exponential growth to negative between 2019 and 2023.

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Gross Profit, Operating Profit, And Adjusted EBITDA

Beyond Meat Profitability

Beyond Meat Profitability

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* BYND’s fiscal year begins on Jan 1 and ends on Dec 31.

Beyond Meat’s profitability has significantly declined since 2020.

The company’s gross profit has reversed from positive to negative since 2021 and is expected to break even in 2023.

As of 2022, Beyond Meat reported a gross profit of -US$23.7 million, down significantly from US$117.3 million in the prior year.

Also, Beyond Meat has not turned a profit, considering that its operating profit has been negative since 2017.

The worse part is that its adjusted EBITDA is getting worse, plummeting to -US$278 million in fiscal 2022, suggesting a worsening cash on hand and cash flow for the plant-based meat producer.

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Gross Margin, Operating Margin, And Adjusted EBITDA Margin

Beyond Meat Margins

Beyond Meat Margins

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* BYND’s fiscal year begins on Jan 1 and ends on Dec 31.

Beyond Meat’s gross margin tumbled to -5.7% in 2022, the first negative value reported since 2017 and is expected to come in at 1% or less in 2023.

Beyond Meat has never had a positive operating margin since 2017 and is expected to operate in a loss again in 2023 with an operating margin of -74%.

Beyond Meat’s adjusted EBITDA margin has worsened to -66.4% as of 2022 from -24% in 2021, suggesting an increasing cash burn over the years.

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Retail And Food Service Revenue

Beyond-Meat-revenue-by-segment

Beyond-Meat-revenue-by-segment

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* BYND’s fiscal year begins on Jan 1 and ends on Dec 31.

Beyond Meat operates in two distribution channels: retail and foodservice.

The revenue generated from the company’s retail channel is much larger than the foodservice channel, at nearly 3X in fiscal 2022.

As of Q3 2023, Beyond Meat had approximately 183,000 retail and foodservice outlets in more than 80 countries worldwide.

Of the 183,000 retail and foodservice outlets, approximately 121,000 were located in the United States.

That leaves approximately 62,000 retail and foodservice outlets outside the U.S. or internationally.

In fiscal 2022, Beyond Meat earned US$295.7 million in retail sales versus US$123.3 million in foodservice sales.

Beyond Meat’s retail sales of US$295.7 million in 2022 have significantly declined from US$325 million in 2021.

The same goes for the company’s foodservice sales of US$123.3 million in 2022, which was down by 19% over US$153 million in 2019.

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Retail And Food Service Revenue In Percentage

Beyond-Meat-revenue-by-segment-in-percentage

Beyond-Meat-revenue-by-segment-in-percentage

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* BYND’s fiscal year begins on Jan 1 and ends on Dec 31.

Beyond Meat’s retail sales contribute to more than 70% of its total revenue, while foodservice sales represent 30%.

The percentage figure for the retail channel has significantly declined since 2017. On the other hand, the foodservice channel percentage has risen from 21.8% in 2017 to nearly 30% as of 2022.

Despite the significant rise in the foodservice revenue, the retail channel still contributes most of Beyond Meat’s sales, making it the company’s primary revenue source.

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Retail And Food Service Revenue YoY Growth Rates

Beyond-Meat-revenue-by-segment-growth-rates

Beyond-Meat-revenue-by-segment-growth-rates

(click image to expand)

* BYND’s fiscal year begins on Jan 1 and ends on Dec 31.

As shown, Beyond Meat’s revenue growth in all distributing segments was badly affected in 2022, with year-on-year growth rates tumbling to -9.0% and -11.9% for the retail channel and foodservice channel, respectively.

Before 2020, Beyond Meat reported triple-digit revenue growth in retail and foodservice segments.

However, things have changed drastically after 2020.

Since 2020, Beyond Meat’s revenue growth in both segments has significantly slowed.

This was the year when the COVID-19 pandemic started, and other issues, such as supply chain disruptions and hyperinflation, emerged after that.

From a comparison perspective, Beyond Meat’s revenue growth in the retail channel looks much better than that in the foodservice channel.

In this context, the average revenue growth for the retail channel was 36% between 2020 and 2022 while the foodservice channel was -4% for the same period.

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U.S. And International Revenue

Beyond-Meat-revenue-by-region

Beyond-Meat-revenue-by-region

(click image to expand)

* BYND’s fiscal year begins on Jan 1 and ends on Dec 31.

Beyond Meat breaks down its revenue into two regions: U.S. and International.

The International region includes Canada.

Beyond Meat’s U.S. revenue is much higher than the International region, at nearly 3X the figure in 2022.

For example, Beyond Meat’s U.S. revenue was US$304 million in 2022 versus US$115 million for the International region.

Therefore, Beyond Meat’s primary revenue source comes from the U.S.

While the U.S. revenue experienced incredible growth between 2018 and 2020, it began to slow after topping $325 million in 2020 and reached only $304 million as of 2022.

While U.S. revenue has plummeted in recent years, Beyond Meat’s International revenue rose significantly in 2021 to $146 million, nearly double the number in 2020 despite the COVID-19 headwinds.

In 2022, Beyond Meat’s International revenue tumbled to $115 million compared to the $145 million reported in 2021.

While international revenue growth significantly slowed in 2022, it was still up 40% from 2020, indicating that the headwind may not look as bad as it seems.

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U.S. And International Revenue In Percentage

Beyond-Meat-revenue-by-region-in-percentage

Beyond-Meat-revenue-by-region-in-percentage

(click image to expand)

* BYND’s fiscal year begins on Jan 1 and ends on Dec 31.

Beyond Meat’s U.S. revenue makes up over 70% of its total sales versus less than 30% of its International revenue.

The percentage figure for the U.S. revenue has significantly declined since 2018, while the International revenue has increased.

In this context, Beyond Meat’s U.S. revenue contribution has decreased from 80% in 2018 to 73% as of 2022.

On the other hand, its International revenue contribution has increased from 20% in 2018 to 27% in 2022.

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U.S. And International Revenue YoY Growth Rates

Beyond-Meat-revenue-by-region-growth-rates

Beyond-Meat-revenue-by-region-growth-rates

(click image to expand)

* BYND’s fiscal year begins on Jan 1 and ends on Dec 31.

Before 2020, Beyond Meat experienced triple-digit revenue growth in all regions.

However, things have changed considerably since 2020.

As seen, Beyond Meat’s revenue growth in 2022 in the U.S. tumbled to -4.9% versus -20.7% for the International region.

On average, Beyond Meat’s U.S. revenue grew 19% between 2020 and 2022, while the International region grew 13% during the same period.

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Conclusion

While Beyond Meat’s growth had been phenomenal in both the U.S. and the international markets in the past, the company was having a severe setback in 2022.

This scenario also applies to Beyond Meat’s retail and foodservice channels, whose revenue declined considerably in 2022.

On a consolidated basis, Beyond Meat’s total revenue in 2022 dived significantly and is expected to go even lower in 2023.

Moreover, Beyond Meat’s profitability and margin were at record lows, too, in 2022 and are expected to remain so in 2023.

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

Overall, Beyond Meat has experienced major challenges in the post-pandemic era, driven by severe revenue decline, possibly due to the decreasing popularity of plant-based meat products.

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References and Credits

1. All financial figures presented in this article were obtained and referenced from Beyond Meat’s quarterly and annual reports, SEC filings, investor slides, press releases, etc., which are available in Beyond Meat SEC filings.

2. Featured images in this article are used under Creative Commons licenses and sourced from the following websites: Helen Alfvegren and Christoph Scholz.

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Beyond Meat vs Impossible Buger

Plant-based meats are all the rage, with seemingly every restaurant offering 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 the Beyond and Impossible burgers and want to see how they compare to beef burgers when it comes 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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Disclosure

References and examples such as tables, charts, and diagrams are constantly reviewed to avoid errors, but we cannot warrant the total correctness of all content.

The content in this article is for informational purposes only and is neither a recommendation nor a piece of financial advice to purchase a stock.

If you find the information in this article helpful, please consider sharing it on social media and provide a link to this article from any website so that more articles like this can be created.

Thank you!

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