Beyond Meat® Reports Second Quarter 2022 Financial Results
August 4, 2022
EL SEGUNDO, Calif., Aug. 04, 2022 (GLOBE NEWSWIRE) -- Beyond Meat, Inc. (NASDAQ: BYND) (“Beyond Meat” or “the Company”), a leader inplant-based meat, today reported financial results for its second quarter ended July 2, 2022.
Second Quarter 2022 Financial Highlights1

Net revenues were $147.0 million, a decrease of 1.6% year-over-year.
Gross profit was a loss of $6.2 million, or gross margin of -4.2% of net revenues. Gross profit was negatively impacted byapproximately $14.5 million, or -10.0 percentage points of gross margin, associated with sales to the liquidation channel
and increased inventory reserves, and a further $7.7 million, or -6.7 percentage points of gross margin, related to Beyond
Meat® Jerky.
Net loss was $97.1 million, or $1.53 per common share. Net loss as a percentage of net revenues was -66.1%.
Adjusted EBITDA was a loss of $68.8 million, or -46.8% of net revenues.
Beyond Meat President and CEO Ethan Brown commented, “In Q2 2022, we recorded our second largest quarter ever in terms of net revenues evenas consumers traded down among proteins in the context of inflationary pressures, and we made solid sequential progress on reducing operating andmanufacturing conversion costs. Across the balance of the year, we are tightly focused on intensifying OpEx and manufacturing cost reductions,executing against a series of planned market activities for our global strategic partners, and strengthening our retail business through core support andthe introduction of one of our best innovations to date. Through these and other measures, we are confident we will emerge from the current economic
climate leaner and stronger, and well positioned for our next chapter of growth.”_______________________
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.
Brown continued, “We recognize progress is taking longer than we expected, notwithstanding the increasing urgency and importance of ouropportunity. Our transition to mass market consumption will occur as we actualize our vision: providing consumers with plant-based meats that are
indistinguishable from, understood as healthier than, and at price parity with their animal protein equivalents. With the recent, dramatic, decline in
consumer buying power, the importance of delivering on our price parity targets is magnified. We take note of this powerful reminder, and continue toadvance as well as broaden cost reduction activities in service to realizing price parity.”
Second Quarter 2022
Net revenues decreased 1.6% to $147.0 million in the second quarter of 2022, compared to $149.4 million in the year-ago period. The decrease in net
revenues was driven by a decrease in net revenue per pound of approximately 14.2%, partially offset by a 14.6% increase in total pounds sold. The
decrease in net revenue per pound was primarily attributable to changes in price, including the impact of sales to liquidation channels and list pricereductions in the EU implemented in the first quarter of 2022, changes in foreign exchange rates, and increased trade discounts. U.S. retail channel
net revenues increased 2.2% compared to the year-ago period primarily driven by sales of Beyond Meat Jerky, which was introduced in the firstquarter of 2022, to the Planet Partnership, LLC, our joint venture with PepsiCo, Inc., partially offset by decreases of other products. U.S. foodservice
channel net revenues decreased 2.4% primarily due to discontinued distribution at a certain customer, which was included in the year-ago period,
partially offset by increased sales of other products. International retail channel net revenues decreased 17.0% mainly due to list price reductions in
the EU, unfavorable foreign exchange rate impact, and increased trade discounts partially offset by increased pounds sold. International foodservice
channel net revenues increased 7.0% primarily due to an increase in pounds sold, partially offset by changes in sales mix, unfavorable foreignexchange rate impact, and increased trade discounts.
Net revenues by channel (unaudited):
The following tables present our net revenues by channel for the periods presented:
Three Months Ended(in thousands)
U.S.:
RetailFoodservice
U.S. net revenues
International:

July 2,2022$

ChangeJuly 3,2021

Amount

%78,861 $23,38977,195 $23,961

1,666
(572)

(2.4)%

2.2%

102,250

101,156

1,094

1.1%

Retail

23,69221,09828,544
19,726(4,852)
1,372(17.0)%

Foodservice
International net revenues

44,79048,270(3,480)(7.2)%

147,040 $

149,426 $(2,386)(1.6)%$Net revenues

Six Months Ended
July 2,2022(in thousands)
U.S.:
Retail$7.0%

ChangeJuly 3,2021

Amount%147,121 $38,882141,021 $
40,703

6,100(1,821)(4.5)%

186,003

181,724

4,279

2.4%

39,82930,66345,74330,123(5,914)540(12.9)%

Foodservice
International net revenues

70,49275,866(5,374)(7.1)%

256,495 $257,590 $(1,095)(0.4)%

Foodservice
U.S. net revenues
International:
Retail$Net revenues

4.3%

1.8%

Pounds sold by channel (unaudited):
The following table presents consolidated pounds sold by channel for the periods presented:
Three Months Ended(in thousands)
U.S.:
RetailFoodservice
International:
RetailJuly 2,
2022

July 3,2021

ChangeAmountSix Months Ended
July 2,2022%

ChangeJuly 3,2021

Amount%16,057
3,965

13,834
4,002

2,223
(37)

16.1%
(0.9)%

28,5106,717

24,962
6,884

3,548
(167)

14.2%
(2.4)%

5,061
5,042

4,775
3,666

286
1,376

6.0%

Foodservice

37.5%

8,591
7,623

7,734
5,669

857
1,954

34.5%

Total pounds sold

30,12526,277

3,848

14.6%

51,44145,249

6,192

13.7%

11.1%

Gross profit was a loss of $6.2 million, or gross margin of -4.2% of net revenues, in the second quarter of 2022, compared to gross profit of $47.4
million, or gross margin of 31.7% of net revenues, in the year-ago period. The Company’s second quarter results included increased sales of certain
inventory to the liquidation channel, as well as higher inventory reserves, which, combined, the Company estimates reduced gross profit and grossmargin by approximately $14.5 million and 10.0 percentage points, respectively (excluding any impact from Beyond Meat Jerky). The Company
estimates that Beyond Meat Jerky, which was introduced in the first quarter of 2022, further reduced gross profit and gross margin by approximately$7.7 million and 6.7 percentage points, respectively. In addition to the aforementioned factors, gross margin in the second quarter of 2022 compared to
the year-ago period was negatively impacted by increased manufacturing costs per pound including depreciation, higher materials costs, andincreased logistics costs.
Loss from operations in the second quarter of 2022 was $89.7 million compared to $18.6 million in the year-ago period. In addition to the decrease ingross profit, the expanded loss from operations was primarily attributable to growth in non-production headcount expenses compared to the year-ago
period, increased general and administrative expenses driven by ongoing consulting agreements, greater investment in marketing activities, higher
expenses associated with production trial activities, and increased investments in innovation.
Net loss was $97.1 million in the second quarter of 2022 compared to $19.7 million in the year-ago period. Net loss per common share was $1.53 in
the second quarter of 2022 compared to net loss per common share of $0.31 in the year-ago period. In addition to the expanded loss from operations,net loss in the second quarter of 2022 included $5.4 million in unrealized foreign currency losses primarily due to unfavorable changes in foreignexchange rates of the Euro and Chinese Yuan compared to the year-ago period.
Adjusted EBITDA was a loss of $68.8 million, or -46.8% of net revenues in the second quarter of 2022 compared to an Adjusted EBITDA loss of $2.2
million, or -1.5% of net revenues, in the year-ago period.
Balance Sheet and Cash Flow Highlights
The Company’s cash and cash equivalents balance was $454.7 million and total outstanding debt was $1.1 billion as of July 2, 2022. Net cash used inoperating activities was $235.7 million for the six months ended July 2, 2022, compared to $120.4 million for the year-ago period. In the six months
ended July 2, 2022, net cash used in operating activities included $43.7 million in prepaid lease costs related to the Company’s new innovation centerand headquarters facility currently under construction, compared to $26.6 million in the year-ago period. Capital expenditures totaled $42.0 million forthe six months ended July 2, 2022, compared to $51.4 million for the year-ago period. Capital expenditures primarily reflect the Company’s continued
investments in production equipment and facilities related to capacity expansion and commercialization initiatives domestically and abroad.
2022 Outlook
The Company's operating environment continues to be affected by near-term uncertainty related to macroeconomic issues, including inflation andrising interest rates, increasing concerns about the likelihood of a recession, COVID-19 and its potential impact on consumer behavior and demandlevels, challenges related to labor availability and supply chain disruptions, partially attributable to recent geopolitical tensions. Management's outlook
considers the potential impact from these factors assuming present day conditions, but the Company acknowledges its operating results may differ
materially from the expectations set forth below if its assumptions related to the aforementioned variables, among others, do not materialize. Relative
to its previous expectations, the Company believes many of these factors have shifted adversely, and based on management's best assessment of theenvironment today, the Company is providing the following outlook for the full year 2022:

Net revenues are expected to be in the range of $470 million to $520 million, an increase of 1% to 12% compared to 2021.
This compares to the Company’s previous expectation of net revenues in the range of $560 million to $620 million,
representing an increase of 21% to 33% compared to 2021.
The Company is announcing a reduction-in-force affecting approximately 4% of its global workforce. The reduction-in-force
is expected to result in total annualized savings of approximately $8 million, excluding one-time separation costs ofapproximately $1 million, which the Company expects to incur in the third quarter of 2022.
Total distribution points by channel (unaudited):
The following table presents the approximate number of distribution outlets by channel for the periods presented:
Q1 2021

Q2 2021

Q3 2021

Q4 2021

Q1 2022

Q2 2022U.S.:
Retail(1)Foodservice
International:
Retail

32,00039,00034,00034,00034,00036,00034,00038,00035,00039,00078,00041,000Foodservice

24,00023,00029,00022,00032,00026,00030,00028,00031,00030,00033,00031,000Total distribution points

118,000

119,000

128,000

130,000

135,000

183,000___________(1) Q2 2022 includes distribution points associated with Beyond Meat Jerky. Excluding Beyond Meat Jerky, total U.S. retail distribution outlets wasapproximately 35,000.
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 412-902-4255. The conference call webcast will be available live over theInternet 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, no added hormones or antibiotics, and 0 mg of cholesterol per serving. Founded in 2009, Beyond Meat products aredesigned 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 canpositively impact four growing global issues: human health, climate change, constraints on natural resources and animal welfare. As of June 2022,
Beyond Meat branded products were available at approximately 183,000 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, ourinternational 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,” “project,” “predict,” “outlook,” “potential,” “continue,” “likely,” “will,” “would” and variations ofthese terms and similar expressions, or the negative of these terms or similar expressions. These forward-looking statements are only predictions, nothistorical 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 bysuch 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 aremany 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 flows 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 and at customers, the timing and level of retail purchasing, the timing and level offoodservice 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 andinternational supply chain, including labor shortages and disruption and shipping delays and disruption; a resurgence of COVID-19 and the impact ofvariants 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, lockdowns 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 andsupply 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, including due to geopolitical tensions or the outbreak of hostilities or war; our ability to effectively manage
our growth in the U.S. and abroad; our ability to streamline operations and improve cost efficiencies, which could result in the contraction of ourbusiness and the implementation of significant cost cutting measures; our ability to identify and execute cost-down initiatives intended to achieve priceparity with animal protein; the success of operations conducted by joint ventures, such as the Planet Partnership, LLC with PepsiCo, Inc., where weshare ownership and management of a company with one or more parties who may not have the same goals, strategies or priorities as we do andwhere 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 increasehousehold penetration, repeat purchases, buying rates (amount spent per buyer) 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 toeffectively expand or optimize our manufacturing and production capacity, including effectively managing capacity for specific products with shifts indemand; risks associated with underutilization of capacity which could give rise to termination fees to exit certain supply chain arrangements and/or
the write-off of certain equipment; our ability to sell our inventory in a timely manner requiring us to sell our products through liquidation channels at
lower prices, write-down or write off obsolete inventory, or increase inventory reserves; our ability to accurately forecast our future results ofoperations, 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 theNetherlands, and our ability to comply with the U.S. Foreign Corrupt Practices Act or other anti-corruption laws; the effects of global outbreaks ofpandemics or contagious diseases or fear of such outbreaks, such as COVID-19; the success of our marketing initiatives and the ability to grow brandawareness, maintain, protect and enhance our brand, attract and retain new customers and grow our market share; our ability to attract, maintain andeffectively 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, especially those impacted
by the conflict in the Ukraine or problems in the global supply chain exacerbated by COVID-19 lockdowns in China; the availability of pea and otherprotein 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; thevolatility associated with ingredient, packaging, transportation and other input costs; the impact of inflation and rising interest rates across the
economy, including higher food, grocery, raw materials, transportation, energy, labor and fuel costs; reduced consumer confidence and consumer
spending, including spending to purchase our products, and negative trends in consumer purchasing patterns due to consumers’ disposable income,credit availability, debt levels and inflation; real or perceived quality or health issues with our products or other issues that adversely affect our brandand reputation; our ability to accurately predict consumer taste preferences, trends and demand and successfully innovate, introduce andcommercialize 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; theability 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; the effects of organizationalchanges including a reduction-in-force and realignment of reporting structures; risks related to use of a professional employer organization toadminister 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; accounting estimates based on judgment and assumptions that may differ from actual results; therequirements 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 tosatisfy 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 innovation and headquarters lease, the timing of occupancy and completionof 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 underleases for our corporate offices, manufacturing facilities and warehouses; changes in laws and government regulation affecting our business, including
the U.S. Food and Drug Administration and the U.S. Federal Trade Commission governmental regulation, and state, local and foreign regulation; newor 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; ourability 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 retailcustomers; 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, including due to rising interest rates; economic conditions and the impact on consumer spending; the impact ofincreased scrutiny from stakeholders, institutional investors and governmental bodies on environmental, social and governance (“ESG”) practices,
including expanding mandatory and voluntary reporting, diligence and disclosure on ESG matters; the 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, intellectual property and trade secrets 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 Annual Report on Form 10-K for the year ended

December 31, 2021 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. Suchforward-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 to the extent required byapplicable laws. If we do update one or more forward-looking statements, no inference should be made that we will make additional updates withrespect 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 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 asa 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 informationthat 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 informationthat it shares at the “Investors” link located at the bottom of the Company’s webpage at https://investors.beyondmeat.com/investor-relations and tosign up for and regularly follow the Company’s social media accounts. Users may automatically receive email alerts and other information about theCompany when enrolling an email address by visiting "Request Email Alerts" in the "Investors" section of Beyond Meat’s website athttps://investors.beyondmeat.com/investor-relations.
Contacts
Media:
Shira Zackaishira.zackai@beyondmeat.com
Investors:
Fitzhugh Taylor and Raphael Grossbeyondmeat@icrinc.com
BEYOND MEAT, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Operations(In thousands, except share and per share data)(unaudited)Three Months Ended
July 2,2022
Net revenues$

Cost of goods sold
Gross (loss) profit
Research and development expenses
Selling, general and administrative expenses
Restructuring expenses

147,040
153,202

Six Months Ended

July 3,2021$

149,426
102,074

July 2,2022$

256,495
262,467

July 3,
2021$

257,590
177,530(6,162)47,352(5,972)80,06016,20263,015
4,302

13,82348,2863,844

35,880138,129
7,328

29,74887,2406,318

Total operating expenses

83,51965,953

181,337

123,306

Loss from operations
Other (expense) income, net
Interest expense(89,681)(18,601)(187,309)(43,246)(1,108)(4,902)(1,022)180(2,133)(6,026)(1,651)(1,390)

Other, net
Total other expense, net
Loss before taxes
Income tax expense
Equity in losses of unconsolidated joint venture
Net loss
Net loss per share available to common stockholders—basic anddilutedWeighted average common shares outstanding—basic and diluted(6,010)(842)(8,159)(3,041)(95,691)
11
1,432(19,443)2
207(195,468)
21
2,103(46,287)50
581$(97,134)$(19,652)$(197,592)$(46,918)$(1.53)$(0.31)$(3.11)$(0.74)

63,573,658

63,121,400

BEYOND MEAT, INC. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets(In thousands, except share and per share data)

63,519,444

63,029,597

(unaudited)
July 2,2022
AssetsCurrent assets:
Cash and cash equivalents
Accounts receivable, net
Inventory$

454,674
77,154
254,653
33,029$733,294
43,806
241,870
33,078$819,510$

1,052,048

Prepaid expenses and other current assets
Total current assets
Property, plant, and equipment, net
Operating lease right-of-use assets
Prepaid lease costs, non-current
Other non-current assets, net

December 31,
2021

258,075
25,464
102,839
6,301
5,920

Investment in unconsolidated joint venture

226,489
26,81559,188
6,836
8,023

$

1,218,109$

1,379,399$

74,430
2,984
4,333
4,595
22,975
210$

69,040
155
128
4,458
20,226
182$

109,527$

94,189$1,131,641
21,143
3,739$

1,129,674
22,599442$
Total long-term liabilities
Commitments and Contingencies
Stockholders’ (deficit) 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; 63,643,369 and 63,400,899
shares issued and outstanding at July 2, 2022 and December 31, 2021, respectively
Additional paid-in capital
Accumulated deficit

1,156,523$

1,152,715—$—

Total assets
Liabilities and Stockholders’ (Deficit) Equity:
Current liabilities:
Accounts payable
Wages payable
Accrued bonus
Current portion of operating lease liabilities
Accrued expenses and other current liabilities
Short-term finance lease liabilities
Total current liabilities
Long-term liabilities:
Convertible senior notes, net
Operating lease liabilities, net of current portion
Finance lease obligations and other long-term liabilities

Accumulated other comprehensive loss

6
530,152(574,564)(3,535)

6
510,014(376,972)(553)

Total stockholders’ (deficit) equity$(47,941)$

132,495

Total liabilities and stockholders’ (deficit) equity$

1,218,109$

1,379,399

BEYOND MEAT, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Cash Flows(In thousands)(unaudited)
Six Months Ended
July 2,
2022
Cash flows from operating activities:
Net loss
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization
Non-cash lease expense
Share-based compensation expense
Loss on sale of fixed assets
Amortization of debt issuance costs
Loss on extinguishment of debt
Equity in losses of unconsolidated joint venture
Unrealized losses on foreign currency transactions
Net change in operating assets and liabilities:$(197,592)
14,8202,091
19,598
400
1,967
—
2,103
7,076

July 3,2021$(46,918)
9,207
1,580
15,239
111
1,352
1,037
581
—

Accounts receivable
Inventories
Prepaid expenses and other assets
Accounts payable
Accrued expenses and other current liabilities
Prepaid lease costs, non-current(30,158)(17,036)
(992)
(206)
7,949
(43,651)(2,059)Operating lease liabilities
Net cash used in operating activities
Cash flows from investing activities:
Purchases of property, plant and equipment$(235,690)$(120,445)$(41,965)(23)$(51,420)(145)$(41,988)$(51,565)

$

—
—
—
—
(43)
1,309
(769)

$

1,150,000(83,950)(23,605)(25,000)(83)
6,499(1,787)$497$

1,022,074$(277,181)(1,439)733,294$

850,064
146
159,127$454,674$

1,009,337

$
$

153
21

$
$

306
98

$
$
$

12,430
115
748

$
$
$

10,251
580
1,678

$

—

$

1,614

Payment of security deposits
Net cash used in investing activities
Cash flows from financing activities:
Proceeds from issuance of convertible senior notes
Purchase of capped calls related to convertible senior notes
Debt issuance costs
Repayment of revolving credit facility
Principal payments under finance lease obligations
Proceeds from exercise of stock options
Payments of minimum withholding taxes on net share settlement of equity awards
Net cash provided by financing activities
Net (decrease) increase in cash and cash equivalents
Effect of exchange rate changes on cash
Cash and cash equivalents at the beginning of the period
Cash and cash equivalents at the end of the period
Supplemental disclosures of cash flow information:
Cash paid during the period for:
Interest
Taxes
Non-cash investing and financing activities:
Non-cash additions to property, plant and equipment
Non-cash additions to financing leases
Operating lease right-of-use assets obtained in exchange for lease liabilities
Reclassification of other current liability to additional paid-in capital in connection with the share-settled
obligation(27,713)(44,741)(9,943)(2,197)
10,157(26,578)(1,619)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 toassess 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 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 arethose 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 performancemeasure 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 andamortization expense, restructuring expenses, share-based compensation expense, expenses attributable to COVID-19, and Other, net, includinginterest 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 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 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 bymanagement 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 ourcompensation 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; andother 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 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
July 2, 2022

(in thousands)
Net loss, as reported

July 2, 2022

(97,134)—$(19,652)—$(197,592)—$(46,918)
1,037$(97,134)$(19,652)$(197,592)$(45,881)Three Months Ended
July 2, 2022

(in thousands, except share and per share amounts)
Numerator:
Net loss, as reported
Aggregate non-GAAP adjustments as listed above
Adjusted net loss used in computing Adjusted net loss per
diluted common share

Six Months Ended

July 3, 2021

July 2, 2022

(97,134)—$(19,652)—$(197,592)—$(46,918)
1,037$(97,134)$(19,652)$(197,592)$(45,881)

63,573,658$

63,121,400(1.53)$(0.31)

63,519,444$

Three Months Ended
July 2, 2022
Net loss per share available to common stockholders—basic anddiluted, as reported$
Loss on extinguishment of debt$

Adjusted net loss per diluted common share

July 3, 2021$

Denominator:
Weighted average shares used in computing Adjusted net loss
per diluted common share
Adjusted net loss per diluted common share

July 3, 2021$

Loss on extinguishment of debt
Adjusted net loss

Six Months Ended

July 3, 2021

(3.11)

63,029,597$(0.73)Six Months Ended

July 3, 2021

July 2, 2022

July 3, 2021

(1.53)—$(0.31)—$(3.11)—$(0.74)
0.01(1.53)$(0.31)$(3.11)$(0.73)

The following table presents the reconciliation of Adjusted EBITDA to its most comparable GAAP measure, net loss, as reported (unaudited):Three Months Ended(in thousands)
Net loss, as reported
Income tax expense
Interest expense
Depreciation and amortization expense

July 2, 2022$

Restructuring expenses(1)Share-based compensation expense

$

4,302
10,306

Other, net(2)Adjusted EBITDA(97,134)
11
1,108
7,729

(68,776)(19,652)
2
1,022
4,881

July 2, 2022
$

3,844
7,863

4,902
$

Six Months Ended

July 3, 2021

(2,220)July 3, 2021$

7,328
19,598(180)$(197,592)
21
2,133
14,8206,318
15,2396,026$(147,666)(46,918)
50
1,651
9,207

1,390
$

(13,063)

Net loss as a % of net revenues
Adjusted EBITDA as a % of net revenues(66.1 )%
(46.8 )%

(13.2 )%
(1.5 )%(77.0 )%
(57.6 )%

(18.2 )%
(5.1 )%____________(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) (a) Includes $5.5 million and $6.6 million in foreign currency transaction losses in the three and six months ended July 2, 2022, respectively, and$0.2 million in foreign currency transaction gains and $0.1 million in foreign currency transaction losses in the three and six months ended July 3,
2021, respectively.
(b) Includes $1.0 million in loss on extinguishment of debt associated with termination of the Company's credit facility in the six months ended July
3, 2021.