Cameron University Business Law Discussion

Here are the 3 essay questions and 1 draw question.

1)Select a Generic Business Level Strategy for Beyond Meat, Inc. and Develop a Strategic Proposal for the firm.

2)Provide an analysis of Beyond Meat’s industry and Macro-environment. Based on your analysis, identify the three most important environmental problems facing Beyond Meat and explain how your strategy above is likely to be able address those KSFs to improve the firm’s profitability.

3) Provide convincing evidence to support at least five important differences in resources or capabilities (strengths and/or weaknesses) which, taken together make Beyond Meat, Inc. unique relative to its competitors and substitutes. For each difference, explain how that resource supports your proposed strategy (from the mandatory question) or the changes you will make to improve the fit between that resource and your strategy.

4)Draw the Diamond-E (SERVO) model of strategic management and explain the relationships between each element of the model.

Beyond Meat, Inc. in 2022
Beyond Meat, Inc. was one of the fastest growing companies in America in 2021. From its first products offered in
select Whole Foods Markets in 2012, Beyond’s products in 2021 were sold in over 122,000 retail and food service
outlets in 80 countries. The firm introduced the first vegetable-based hamburger designed to look and taste like
beef, in the second quarter of 2016. They were followed into the market by the Impossible Burger © from
Impossible Foods, later that same year. Both firms parted with vegetarian food tradition by targeting non-vegetarian
customers and insisting that their products be sold in the meat case at grocery stores alongside traditional beef,
chicken and pork products. Sales for Beyond grew over 100 percent each year through 2019 and grew, though at a
slower pace, even in the face of the Covd-19 pandemic. Sales for the nine months ended in October of 2021 were
$364 million compared to $304 million in the nine months ended in October of 2020. The Covid pandemic also
shifted the channels through which Beyond Meat products were sold. Sales through food service companies
(restaurants and fast food outlets) declined as many of those vendors closed during pandemic restrictions. Sales
through grocery stores and other retailers increased sufficiently to more than offset the decline in restaurant sales. In
August of 2020, Beyond launched its own e-commerce site to sell bulk packs, trial packs and other products direct to
consumers. While sales growth was high, the firm’s stock price had been volatile and by 2021 Beyond Meat had yet
to earn a profit. See Table One for financial data.
TABLE 1: SELECTED FINANCIAL DATA
(in thousands, except share and per share
data)
Statements of Operations Data:
Net revenues
Cost of goods sold
Gross profit (loss)
Research and development expenses
Selling, general and administrative expenses
Restructuring expenses(1)
Total operating expenses
Loss from operations
Other expense:
Interest expense
Remeasurement of warrant liability(2)
Other, net
Total other expense, net
Loss before taxes
Income tax expense
Net loss
Net loss per share available to common
stockholders—basic and diluted(3)(4)
Weighted average common shares
outstanding—
basic and diluted(4)
$
Year Ended December 31,
2020
406,785
284,510
122,275
31,535
133,655
6,430
171,620
(49,345)
$
2019
297,897 $
198,141
99,756
20,650
74,726
4,869
100,245
(489)
2018
87,934 $
70,360
17,574
9,587
34,461
1,515
45,563
(27,989)
2017
32,581 $
34,772
(2,191)
5,722
17,143
3,509
26,374
(28,565)
2016
16,182
22,494
(6,312)
5,782
12,672
—
18,454
(24,766)
(1,128)
(1,120)
352
(1,896)
(29,885)
1
(29,886) $
(1,002)
(385)
(427)
(1,814)
(30,379)
5
(30,384) $
(380)
—
—
(380)
(25,146)
3
(25,149)
(4.75) $
(5.57) $
(5.51)
$
(2,576)
—
(759)
(3,335)
(52,680)
72
(52,752)
$
(3,071)
(12,503)
3,629
(11,945)
(12,434)
9
(12,443) $
$
(0.85)
$
(0.29) $
62,290,445
42,274,777
6,287,172
5,457,629
4,566,757
The stock initially sold for $25.00 per share during the firm’s IPO in May of 2019. By July of 2019, the stock price
had risen to nearly $240.00 per share. The stock was selling in the $55-$65 range at the beginning of 2022, near its
lowest price since the firm went public. In addition to a volatile stock price and a lack of profits to date, Beyond in
2022 was facing a wide array of new firms entering the plant-based meat market. Many of these firms were existing
meat producers with substantially larger resources than Beyond and with well-established production, distribution
and marketing capabilities.
1
The firm continued to invest in growth opportunities. On January 14, 2020, Beyond registered Beyond Meat EU
B.V., in the Netherlands. On April 28, 2020, the firm registered Beyond Meat (Jiaxing) Food Co., Ltd. in the
Zhejiang Province in China. On January 25, 2021, Beyond entered into The PLANeT Partnership, LLC, a joint
venture with PepsiCo, Inc., to develop, produce and market new snack and beverage products made from plantbased protein.
Technology
Innovation had been a hallmark of the company since its inception. The company’s founder, Ethan Brown,
created the concept in 2009 with the stated mission of combating climate change. Brown licensed the technology
behind the vegetable-based meat substitutes from two University of Missouri professors, Fu-hung Hsieh and Harold
Huff, who had been developing their meatless protein for years. Beyond’s research and development team included
more than 170 scientists, engineers, technicians and chefs. The team had successfully created new products and
processes as well as improving existing ones. Beyond continued to seek additional products as well as to improve
the taste, texture, appearance and aroma of its product lines.
Current R&D efforts at the start of 2022 included research into new materials and technologies to better
mimic the saturated fats and connective tissues in real meats as well as efforts to develop new protein sources which
would not denature during cooking and new encapsulation technologies for delivering flavor and texture. With the
PLANeT Partnership joint venture with PepsiCo, the firm hoped the new joint venture would allow Beyond to reach
more consumers, enter new product categories and access new distribution channels for its products around the
world.
Beyond held multiple trademarks and one issued patent in the U.S. and another in the U.K. with five
additional U.S. patents and 13 international patents pending. They actively sought to protect these patents and
trademarks and to treat their processes and technologies as confidential trade secrets, requiring non-disclosure
agreements from employees, suppliers and co-manufacturers.
Products
Beyond Meat offered a range of plant-based beef, pork and poultry in ready-to-cook and ready-to-heat formats.
All the products were made from simple ingredients without GMOs, bioengineered ingredients, hormones,
antibiotics or cholesterol. With the exception of Beyond Beef Crumbles, all the products were certified Kosher and
Halal.
Beyond Burger: The Beyond Burger, the firm’s bestselling product, was the first product merchandised in the
meat case of grocery stores in the United States. The Beyond Burger was designed to look, cook and taste like an
80/20 ground beef burger. It was made from a blend of pea, mung bean and rice proteins. The Beyond Burger’s
primary source of protein comes from peas, providing 20 grams of protein, and has no soy, gluten or GMOs. The
Beyond Burger represented 70% of the firm’s sale in 2018, 64% in 2019, and 58% in 2020 as additional products
like those below were introduced to the market.
Beyond Beef: Beyond Beef was meant to mimic the taste and texture of ground beef and replicate the versatility
of ground beef. It had 35% less saturated fat than 80/20 beef (five grams per four-ounce serving.) for use in dishes
like tacos and meatballs, and as pizza toppings. It is made from a blend of pea, mung bean and rice proteins, and has
no soy, gluten or GMOs.
Beyond Sausage: Beyond Sausage was designed to look, cook and taste like a pork sausage. Made from a
blend of pea, rice and faba bean proteins, . Beyond Sausage’s primary source of protein comes from peas,
providing 16 grams of protein and three grams of fiber per serving, and has no soy, gluten or GMOs. Beyond
Sausage currently comes in three flavors: Brat Original, Hot Italian and Sweet Italian.
Beyond Breakfast Sausage: Beyond Breakfast Sausage Patties and Beyond Breakfast Sausage Links replicate a
classic pork breakfast sausage patty or link. Made from a blend of pea and rice proteins seasoned with herbs and
spices, Beyond Breakfast Sausage Patties provide 11 grams of plant-based protein per serving, while Beyond
Breakfast Sausage Links provide 8 grams of plant-based protein per serving. Each has no soy, gluten or GMOs.
2
Beyond Breakfast Sausage Patties were available in the foodservice channel as of December 31, 2019, and were
launched in U.S. retailers in in March 2020. Beyond Sausage Links were launched in U.S. retail in October 2020.
Beyond Meatballs: Beyond Meatballs are pre-formed and designed to replicate ground beef or pork
meatballs. Beyond Meatballs are made from a blend of peas and brown rice. They provide 19 grams of protein
per serving, and have no soy, gluten or GMOs. Beyond Meatballs were launched in U.S. retail in September
2020.
Beyond Beef Crumbles. Beyond Beef Crumbles are ready-to-heat products designed to look like ground beef.
Beyond Beef Crumbles’ primary source of protein comes from peas, providing 14 grams of protein per serving,
and has no soy, gluten or GMOs.
The company distributed its products through a variety of customers in the retail and foodservice channels in
the United States and internationally primarily through distributors who purchase, store, sell, and deliver the
company’s products. In addition, the Company sold directly to retailers and foodservice channels who handle their
own distribution. In the third quarter of 2020, the Company launched an e-commerce site to sell its products direct
to consumers. One customer, Costco, accounted for approximately 13% of the Company’s gross revenues in 2020;
two distributors DOT and UNFI, accounted for approximately 17% and 16%, respectively, of the Company’s gross
revenues in 2019; and three distributors accounted for approximately 32%, 21% and 13%, respectively, of the
Company’s gross revenues in 2018. No other distributor or customer accounted for more than 10% of the
Company’s gross revenues in 2020, 2019 or 2018.
The following table presents the company’s net revenues by channel:
Year Ended December 31,
2019
2020
2018
(in thousands)
U.S.:
Retail
Foodservice
U.S. net revenues
International:
Retail
Foodservice
International net revenues
Net revenues
$
$
264,111 $
60,763
324,874
129,383
70,372
199,755
36,472
45,439
81,911
406,785 $
15,426
82,716
98,142
297,897
$
49,772
20,717
70,489
1,007
16,438
17,445
87,934
$
The following table presents volume of the company’s products sold in pounds:
Year Ended December 31,
2020
2019
(in thousands)
U.S.:
Retail
Foodservice
International:
Retail
Foodservice
Volume of products sold
Change
Amount
45,706
10,860
21,347
11,845
24,359
(985)
114.1 %
(8.3)%
6,684
9,281
72,531
2,816
15,364
51,372
3,868
(6,083)
21,159
137.4 %
(39.6)%
41.2 %
Operations
The basic technology on which the firm’s products are based involves creating a dry blend of plant proteins
which are then entered into an extruder where the firm adds water and steam. A proprietary process involving a
combination of heating, cooling, and variations in pressure allow the proteins to be woven together to form the basis
of the products. To these woven proteins, the firm then added flavorings and other ingredients before packaging and
3
%
shipping the products to distributors and customers. These processes are completed at the firm’s own facilities as
well as by co-manufacturers in the U. S. and abroad who sign privacy agreements.
The company’s primary production facilities were located in Columbia, Missouri, and research and
development and administrative offices were located in El Segundo, California. In addition to its own production
facilities, the Company used co-manufacturers in various locations in the United States, Canada and the
Netherlands. In the second quarter of 2020, the Company acquired its first manufacturing facility in Europe located
in Enschede, the Netherlands. This facility completed operational testing of dry blend production in late 2020 and
was expected to begin commercial trial runs in the second quarter of 2021. In addition, in June 2020 the Company
announced the official opening of a new co-manufacturing facility to be used for Beyond Meat production built by
the company’s distributor in the Netherlands. In the third quarter of 2020, the Company and BYND JX entered into
an investment agreement and related factory leasing contract to design and develop manufacturing facilities in the
Jiaxing Economic & Technological Development Zone to manufacture plant-based meat products under the Beyond
Meat brand in China. Renovations in the leased facility commenced at the end of 2020 with trial production
expected in the first quarter of 2021 and full-scale end-to-end production expected by the end of the second quarter
of 2021.
Competition
The meat industry was the largest category in food and in 2017 generated estimated sales across retail and
foodservice channels of approximately $270 billion in the United States and approximately $1.4 trillion globally.
Beyond Meat, Inc. competed with both conventional animal-protein companies and with plant-based protein brands,
including brands affiliated with conventional animal-protein companies.
Many millennials and Gen X consumers were attracted to plant-based meat substitutes for health and
sustainability reasons, which allowed grocer sales of plant-based meat replacements to grow more than 27%
between 2020 and 2021, with sales exceeding $7 billion as estimated by the Good Food Institute. Euromonitor
predicted that sales of meat substitutes would top $23 billion by 2024. In 2021, plant-based meat substitutes still
were significantly more expensive than the animal-based products they were meant to replace. Two plant-based
Beyond Meat hamburger patties sold at Kroger or Walmart for $5.99 while the same stores offered four to six
ground beef patties at the same price—making beef more than twice as affordable.
Beyond Meat pioneered the plant-based meat industry targeted to omnivores and sold in the meat case.
Beyond was soon followed by Impossible Foods. The largest competitor dedicated to plant-based meat
replacements (with an estimated 854 employees) is Impossible Foods which was founded in 2011, Impossible foods
was still privately held but had attracted outside funding of $1.4B. In 2020, Impossible Foods went through a
massive retail expansion, going from 150 stores selling its products at the beginning of the year to more than 20,000
in 2022, still well short of Beyond Meat’s 122,000 stores. Impossible Foods used genetically modified heme as its
primary ingredient and was still seeking regulatory approval in Europe and mainland China, where the genetically
modified yeast it uses is banned. While Impossible does not publish sales numbers, estimates of revenue were $230
Million in 2021.
A host of traditional meat processors also noted the potential market tapped by Beyond Meat and entered with their
own versions of plant-based meats. Maple Leaf Foods’ Lightlife brand and Smithfield Foods’ Pure Farmland brand
launched similar products in 2019, while many more followed soon after: Kellogg’s MorningStar Farms
Incogmeato, Conagra’s Gardein Ultimate Burger, Nestle’s Sweet Earth Awesome Burger and Hormel’s Happy Little
Plants. Alpha Foods, Boca Foods (Kraft Heinz), Hungry Planet, Inc., Moving Mountains, Omn!pork (OmniFoods),
Tofurky, Tattooed Chef, The Not Company, OZO (Planterra Foods/JBS) and Vegetarian Butcher (Unilever) also
jumped on the bandwagon. Even Beyond’s customers introduced house brands like Kroger’s Simple Truth and
Sysco’s Simply Plant-Based Meatless Burger.
Tyson Foods introduced Tyson’s Raised & Rooted burger, which blends beef and plant-based protein. Additionally,
a number of U.S. and international companies are working on developing lab-grown or “clean meat,” an animalprotein product cultivated from cells taken from animals, which could have a similar appeal to consumers as plantbased products.
4
Tyson Foods, Inc. offered brands including Tyson®, Jimmy Dean®, Hillshire Farm®, Ball Park®,
Wright®, Aidells®, ibp® and State Fair®. Tyson Foods innovates continually to make protein more sustainable,
tailor food for everywhere it’s available and raise the world’s expectations for how much good food can do.
Headquartered in Springdale, Arkansas, the Company had approximately 137,000 employees (“team members”) on
October 2, 2021.
Tyson produced a wide range of fresh, value-added, frozen and refrigerated beef, pork and poultry products which
they marketed and sold primarily to grocery retailers, grocery wholesalers, meat distributors, warehouse club stores,
military commissaries, industrial food processing companies, chain restaurants or their distributors, live markets,
international export companies and domestic distributors who serve restaurants, foodservice operations such as plant
and school cafeterias, convenience stores, hospitals and other vendors. Additionally, sales to the military and a
portion of sales to international markets were made through independent brokers and trading companies.
A Tyson subsidiary focused on investing in companies developing breakthrough technologies, business models and
products to sustainably feed a growing world population. Tyson New Ventures, LLC is used to broaden our
exposure to innovative, new forms of protein and ways of sustainably producing food to complement the Company’s
continuing investments in innovation in our core Beef, Pork, Chicken and Prepared Foods businesses. Tyson’s
Raised & Rooted burger, blended beef and plant-based protein. (Scheumann, Rebecca (2019). “Beyond Meat Looks
Rich,” Morningstar, Inc. Retrieved from https://www.morningstar.com/articles/952796/beyond-meat-looks-rich.)
As of October 2, 2021, Tyson had about 120,000 employees in the United States, of whom 114,000 were employed
at production facilities, and 17,000 in other countries, primarily in Thailand and China. 33,000 employees in the
United States were subject to collective bargaining agreements with various labor unions. Appendix B provides
Financial Statements for Tyson Foods, Inc. for comparison.
Human Resources
At the end of 2020, Beyond had 700 full-time employees, including 676 in the U.S. and 24 in foreign
countries. None were represented by a labor union. In addition to medical benefits, employees received dental and
vision coverage, health savings and flexible spending accounts, paid time off, 18 paid company holidays, 16-week
paid parental leave at 100% pay, bereavement leave, pet bereavement leave, employee assistance programs, a 401(k)
retirement savings plan with company matching contributions, voluntary short-term and long-term disability
insurance, and life insurance.
Beyond’s performance acceleration program focused on setting quarterly goals aligned with the Company’s
goals, giving and receiving feedback focused on goal progress, accomplishments and development, and the
modification of individual actions to drive business results. This program was designed to reward employee
accountability and achievement of performance goals, while recognizing exceptional performance.
Beyond sought to create a mission-driven culture which promoted collaboration and innovation by
organizing employee activities aligned with that mission. Examples of such activities included employee
participation in a partnership with the Gentle Barn to rescue farm animals and in Beyond’s Feed A Million+
campaign in which marketing ambassadors and employees were given the opportunity to nominate frontline workers
they wanted to support with free meals provided by Beyond Meat. Beyond attempted to continue to promote
employee engagement during COVID-19 by organizing various virtual employee activities. Other Covid
modifications were designed to protect the health and safety of employees.
Beyond established a COVID-19 cross-functional task force that created safety measures to ensure the
health and safety of employees. Among the changed made during the pandemic, the firm allowed employees to
work remotely where feasible; engaged an epidemiologist advisor and an industrial hygienist to inspect its facilities
and to establish appropriate safety standards at its locations; provided employee-wide training on COVID-19 safety
measures; implemented enhanced safety measures including mandatory face coverings, physical distance
requirements, temperature checks, deep cleaning and disinfectant protocols, and hand sanitizing stations for
employees continuing critical on-site work at all locations; reorganized the lay-out of our innovation lab in El
Segundo to allow for increased social distancing; Implemented staggered shifts for employees continuing critical
5
on-site work at all locations to allow for increased social distancing; provided free onsite weekly COVID-19 testing
for all employees in the firm’s El Segundo offices.
Payroll and other record-keeping activities like W-2 issuance were outsourced to various professional
employment organizations (PEOs) in the countries in which Beyond operated. While Beyond handled its own
recruitment and selection and developed its own employment incentives and policies, the employees legally were
also the employees of the PEO. Employees in China were employees of the partner firm.
Suppliers
Ingredients for Beyond Meat include yellow peas, mung beans, sunflower seeds, rice, faba beans, and canola and
coconut oil as well as packaging materials. The primary ingredient in Beyond’s products is woven pea protein.
Beyond acquires its woven protein from many different suppliers. Although most of the raw materials needed are
available from multiple sources, Beyond used a limited number of suppliers for the pea protein needed for its
products. The firm entered multi-year supply agreements with these two suppliers of pea protein, as described
below, but did not have long-term supply agreements with most of the other suppliers. They continue to seek
additional sources of pea- and other plant-based protein that meet the firm’s quality and production criteria.
A multi-year sales agreement with Roquette Frères for the supply of pea protein was due to expire on December 31,
2022; however it can be terminated after 18 months under certain circumstances. This agreement increases the
amount of pea protein to be supplied by Roquette in each of 2020, 2021 and 2022 compared to the amount supplied
2019. The total annual amount Beyond purchases each year must be at least the minimum amount specified in the
agreement, which totals in the aggregate $154.1 million over the term of the agreement.
A three-year supply agreement with PURIS Proteins, LLC allowed the firm to purchase domestically sourced pea
protein. The Puris Agreement expired on December 31, 2021, after which purchases from Puris were on a purchase
order basis.
Flavors consist of product flavors that have been developed by our innovation team in collaboration with our supply
partners exclusively for us. The formulas are then produced by suppliers for use in Beyond’s products. Ingredients in
the flavors are qualified through trials to ensure manufacturability. Upon receipt of the ingredients, suppliers must
provide Certificates of Analysis to confirm that Beyond’s quality and process standards have been met. Flavors are
extensively tested prior to introduction to ensure finished product attributes such as taste, texture, aroma and
appearance are not negatively impacted.
Marketing
Beyond Meat had minimal levels of paid advertising. Advertising costs in the years ended December 31, 2020, 2019
and 2018 were $0.3 million, $0.3 million and $62,000, respectively. Non-advertising related components of the
Company’s total marketing expenditures primarily included costs associated with consumer promotions, product
sampling, and sales aids, which are also included in SG&A. The firm’s registered domain website at
www.beyondmeat.com, served as the primary source of information regarding products, as well as foreign domains
in certain countries.
In 2020, Beyond employed a 36-person sales team divided into four groups: retail, foodservice, international, and
strategic partnerships. These teams work with outside brokers and distributors and with the procurement
professionals at major food service and retail chains who do their own purchasing. To grow sales, the firm routinely
offers discounts, rebates, and other promotions to potential and existing distributors for its products.
In addition, a field marketing team uses Beyond Meat food trucks to support consumer sampling, social media
content creation, and media and influencer relations and other promotional activities.
The primary means by which the firm achieved consumer awareness and interest was through social and digital
media, PR, ambassador and influencer activations, customer media and strategic partnerships with other firms. A
network of brand ambassadors and a strong following by celebrities from the worlds of sports and entertainment
who share Beyond’s core values had helped to promote the firm’s products and mission.
6
Social media platforms such as Facebook, Instagram and Twitter for online collaboration were the primary
mechanism by which Beyond engaged with consumers and directly targeted demographics such as millennial and
Generation Z consumers.
•
Facebook: The company Facebook page had over 440,000 Facebook followers allowing Beyond to provide
consumer services, distribute brand information and news and publish videos and pictures promoting the brand.
Beyond also used Facebook to conduct regular contests and giveaways.
•
Instagram: Beyond’s Instagram account, @beyondmeat, with over 970,000 followers, allowed the firm to
publish content related to its and to publish news, celebrity promotion and content.
•
Twitter: With 118,000 Twitter followers at @BeyondMeat, the firm also provided news and information,
and published short format tips, tricks and shortcuts.
•
LinkedIn: Beyond also used its LinkedIn account, to disseminate news related to Beyond Meat and as a job
board for employment information. Beyond had more than 93,000 LinkedIn followers.
Finance
The firm was publicly traded on the Nasdaq Global Select Market under the symbol “BYND.” On May 6,
2019, the firm completed its initial public offering of stock, selling 11,068,750 shares of common stock at $25.00
per share, netting approximately $ 252.4 million, after deducting underwriting discounts and commissions and
issuance costs. By July of 2019, the stock was trading above $230.00 per share. On August 5, 2019, the firm
completed a second public offering of common stock, selling another 250,000 shares at a price of $160.00 per share
for net proceeds to the Company of approximately $37.4 million.
On January 2, 2019, the Company effected a 3-to-2 reverse stock split of its outstanding common stock and
convertible preferred stock, including outstanding stock options and common and convertible preferred stock
warrants. All references in the accompanying financial statements and related notes to the number of shares of
common stock, convertible preferred stock, warrants and options to purchase common stock and per share data
reflect the effect of the reverse stock split.
On April 21, 2020, the company entered into a $150.0 million five-year secured revolving credit agreement
with JPMorgan Chase Bank. The 2020 credit agreement included an accordion feature for up to an additional
$200.0 million. When the credit agreement went into effect, on April 21, 2020, the company terminated its previous
debt arrangements. The revolving credit facility was scheduled to mature on April 21, 2025. The Company’s debt
balances are detailed below:
TABLE 3: OUTSTANDING DEBT
(in thousands)
Dec.2020
Revolving credit facility
Revolving credit line (SVB)
Term loan facility
Equipment financing loan
Debt issuance costs
Total debt outstanding
Less: current portion of long-term debt
Long-term debt
Dec. 2019
$25,000
—
—
—
—
25,000
25,000
—
—
6,000
20,000
5,000
(431)
30,569
11,000
$19,569
Mission
Beyond Meat was founded with the express purpose of combatting global climate change. Animal
husbandry is a major source of green gas emissions. “At Beyond Meat, we believe there is a better way to feed the
planet. Our mission is to create The Future of Protein® – delicious plant-based burgers, beef, sausage, crumbles, and
7
more. By shifting from animal to plant-based meat, we can address four growing global issues: human health,
climate change, constraints on natural resources, and animal welfare.” (https://www.beyondmeat.com/about/)
References
Beyond Meat.com
impossiblefoods.com
Scheumann, Rebecca (2019). “Beyond Meat Looks Rich,” Morningstar, Inc. Retrieved from
https://www.morningstar.com/articles/952796/beyond-meat-looks-rich
Will Healy (Nov 19, 2019) Avoid Beyond Meat Stock and the Rising Fake Meat Market, InvestorPlace. Retrieved
from https://investorplace.com/2019/11/avoid-beyond-meat-stock-and-all-fake-meat/
Mikaela Cohen (Aug 25 2021) “Impossible Foods, Beyond Meat battle to achieve price parity with real meat”
Evolve (CNN)
8
BEYOND MEAT, INC. AND SUBSIDIARIES
Consolidated Balance Sheets
(In thousands, except share and per share data)
December 31,
2020
Assets
Current assets:
Cash and cash equivalents
Accounts receivable
Inventory
Prepaid expenses and other current assets
Total current assets
Property, plant, and equipment, net
$
Operating lease right-of-use assets
Other non-current assets, net
Total assets
$
Liabilities and Stockholders’ Equity:
Current liabilities:
Accounts payable
Wages payable
Accrued bonus
Current portion of operating lease liabilities
Accrued expenses and other current liabilities
Short-term borrowings under revolving credit facility
Short-term borrowings under revolving credit line and bank term loan
Short-term finance lease liabilities
Total current liabilities
Long-term liabilities:
Long-term portion of bank term loan, net
Equipment loan, net
Operating lease liabilities, net of current portion
Finance lease obligations and other long term liabilities
Total long-term liabilities
Commitments and Contingencies (Note 11)
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, 2020
and 2019; 62,820,351 and 61,576,494 shares issued and outstanding at December 31, 2020 and
2019, respectively
Additional paid-in capital
Accumulated deficit
Accumulated other comprehensive income
Total stockholders’ equity
Total liabilities and stockholders’ equity
$
$
$
$
$
$
$
2019
159,127
35,975
121,717
15,407
332,226
115,299
14,570
5,911
468,006
$
—
$
53,071
2,843
57
3,095
4,830
25,000
—
71
88,967
$
—
—
11,793
149
11,942
$
—
6
560,210
(194,867)
1,748
367,097
468,006
$
Inventories as of December 31,
(in thousands)
2020
Raw materials and packaging
Work in process
Finished goods
Total
83,702
12,887
25,128
$121,717
9
2019
36,884
17,958
26,754
$81,596
855
451,923
26,923
1,768
4,129
—
3,805
—
11,000
72
47,697
$
14,637
4,932
—
567
20,136
$
—
$
$
6
526,199
(142,115)
—
384,090
451,923
The accompanying notes are an integral part of these consolidated financial statements.
Note 6. Inventories
275,988
40,080
81,596
5,930
403,594
47,474
The Company wrote off $10.8 million, $6.4 million and $0.8 million in excess and obsolete inventories and
recognized that expense in cost of goods sold in its statements of operations for the years ended December 31,
2020, 2019 and 2018, respectively. There was no write down of inventory to lower of cost or net realizable value
at December 31, 2020 or 2019.
Note 7. Property, Plant and Equipment
Property, Plant and EquipmentAs of Dec. 31,
(in thousands)
2020
Manufacturing equipment
Research and development equipment
Leasehold improvements
Building
Finance leases
Software
Furniture and fixtures
Vehicles
Land
Assets not yet placed in service
Total property, plant and equipment
Less: accumulated depreciation and amortization
Property, plant and equipment, net
62,521
12,342
9,277
12,569
212
402
614
377
3,995
46,148
148,457
33,158
115,299
2019
37,939
8,933
7,620
—
1,108
274
433
210
—
11,666
68,183
20,709
47,474
BEYOND MEAT, INC. AND SUBSIDIARIES
Consolidated Statements of Operations
(In thousands, except share and per share data)
Year Ended December 31,
2019
2020
Net revenues
Cost of goods sold
Gross profit
Research and development expenses
Selling, general and administrative expenses
Restructuring expenses
Total operating expenses
Loss from operations
Other expense, net:
Interest expense
Remeasurement of warrant liability
Other, net
Total other expense, net
Loss before taxes
Income tax expense
Net loss
$
2018
406,785 $
284,510
122,275
31,535
133,655
6,430
171,620
(49,345)
297,897
198,141
99,756
20,650
74,726
4,869
100,245
(489)
$
87,934
70,360
17,574
9,587
34,461
1,515
45,563
(27,989)
$
(2,576)
—
(759)
(3,335)
(52,680)
72
(52,752) $
(3,071)
(12,503)
3,629
(11,945)
(12,434)
9
(12,443)
$
(1,128)
(1,120)
352
(1,896)
(29,885)
1
(29,886)
$
(0.85) $
(0.29)
$
(4.75)
Net loss per share available to common stockholders—basic and
diluted
Weighted average common shares outstanding—basic and
diluted
62,290,445
10
42,274,777
6,287,172
TYSON FOODS, INC.
CONSOLIDATED STATEMENTS OF INCOME
Sales
Cost of Sales
Gross Profit
Selling, General and Administrative
Operating Income
Other (Income) Expense:
Interest income
Interest expense
Other, net
Total Other (Income) Expense
Income before Income Taxes
Income Tax Expense
Net Income
Less: Net Income Attributable to Noncontrolling Interests
Net Income Attributable to Tyson
Weighted Average Shares Outstanding:
Class A Basic
Class B Basic
Diluted
Net Income Per Share Attributable to Tyson:
Class A Basic
Class B Basic
Diluted
$
$
2021
47,049
40,523
6,526
2,130
4,396
(8)
428
(65)
355
4,041
981
3,060
13
3,047
Three years ended October 2, 2021
in millions, except per share data
2020
2019
$
43,185
$
42,405
37,801
37,383
5,384
5,022
2,376
2,252
3,008
2,770
$
293
70
365
$
$
$
8.57
7.70
8.34
See accompanying Notes to Consolidated Financial Statements.
11
(10)
485
(131)
344
2,664
593
2,071
10
2,061
$
293
70
365
$
$
$
5.79
5.21
5.64
(11)
462
(55)
396
2,374
381
1,993
13
1,980
293
70
366
$
$
$
5.56
4.99
5.40
TYSON FOODS, INC.
CONSOLIDATED BALANCE SHEETS
October 2, 2021, and October 3, 2020
in millions, except share and per share data
2021
2020
Assets
Current Assets:
Cash and cash equivalents
Accounts receivable, net
Inventories
Other current assets
$
Total Current Assets
Net Property, Plant and Equipment
Goodwill
Intangible Assets, net
Other Assets
Total Assets
Liabilities and Shareholders’ Equity
Current Liabilities:
Current debt
Accounts payable
Other current liabilities
$
$
Total Current Liabilities
Long-Term Debt
Deferred Income Taxes
Other Liabilities
Commitments and Contingencies (Note 21)
Shareholders’ Equity:
Common stock ($0.10 par value):
Class A-authorized 900 million shares, issued 378 million shares
Convertible Class B-authorized 900 million shares, issued 70 million shares
Capital in excess of par value
Retained earnings
Accumulated other comprehensive gain (loss)
Treasury stock, at cost – 83 million shares at October 2, 2021 and October 3, 2020
Total Tyson Shareholders’ Equity
Noncontrolling Interests
Total Shareholders’ Equity
Total Liabilities and Shareholders’ Equity
See accompanying Notes to Consolidated Financial Statements
12
$
2,507
2,400
4,382
533
9,822
7,837
10,549
6,519
1,582
36,309
1,067
2,225
3,033
$
$
$
1,420
1,952
3,859
367
7,598
7,596
10,899
6,774
1,589
34,456
548
1,876
1,810
6,325
8,281
2,195
1,654
4,234
10,791
2,317
1,728
38
7
4,486
17,502
(172)
(4,138)
17,723
131
17,854
36,309
38
7
4,433
15,100
(179)
(4,145)
15,254
132
15,386
34,456
$