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Beyond Meat, Inc. (NASDAQ:BYND), currently trading at $3.40 with a market capitalization of $262.3 million, has entered into a sublease agreement with Varda Space Industries, Inc., according to a press release statement based on a filing with the Securities and Exchange Commission. According to InvestingPro analysis, the company operates with a significant debt burden of $1.22 billion and shows weak financial health metrics, which may explain this strategic facility decision. The sublease was made effective as of July 22, 2025, and is subject to the consent of the master landlord, HC Hornet Way, LLC.
Under the agreement, Beyond Meat will sublease approximately 54,749 rentable square feet at its facility located at 888 N. Douglas Street, El Segundo, California. The subleased area consists of about 16,967 square feet of improved space and 37,782 square feet of unimproved space. This move comes as InvestingPro data shows the company is quickly burning through cash, with negative EBITDA of $127.1 million in the last twelve months.
The commencement date for the improved space is set for 30 days after landlord consent is received. The unimproved space commencement date will be either when Varda achieves substantial completion of its improvements and obtains a temporary certificate of occupancy, or 13 months after landlord consent, whichever comes first. The sublease is scheduled to expire on October 31, 2033, unless extended or terminated earlier under its terms.
Varda Space Industries will pay monthly rent starting at approximately $50,901 for the improved space and $113,346 for the unimproved space, both with annual increases of 3%. By the final year of the sublease, the monthly base rent will reach about $64,480 for the improved space and $143,583 for the unimproved space. The subtenant is also responsible for a proportionate share of certain operating expenses, property taxes, and insurance costs. Rent abatements equal to half the base rent will be provided during months two through fifteen, provided there is no default.
The agreement includes an improvement allowance of $3,350,600 from the master landlord for construction within the unimproved space. Beyond Meat will contribute up to $80,000 for building a demising wall. Varda will provide a letter of credit totaling $1,564,527 as security, which may be reduced if the subtenant remains in good standing.
The sublease contains standard provisions for defaults and remedies, and customary brokers’ fees will be paid by Beyond Meat. The information is based on a press release statement and SEC filing. For deeper insights into Beyond Meat’s financial health and future prospects, including 14 additional ProTips and comprehensive analysis, investors can access the full research report on InvestingPro, which provides detailed coverage of over 1,400 US stocks.
In other recent news, Beyond Meat Inc . reported its first-quarter 2025 earnings, revealing a larger-than-expected loss with an earnings per share of -$0.67, missing analysts’ forecasts of -$0.46. The company’s revenues also fell short at $68.7 million compared to the projected $77.77 million. Beyond Meat has withdrawn its full-year 2025 guidance, citing an uncertain operating environment, and secured a $100 million loan with a borrowing rate of 12% to bolster liquidity. Analysts at TD Cowen revised their price target for Beyond Meat, reducing it to $2.00 from $2.50 while maintaining a Sell rating. Similarly, Bernstein cut its price target for the company from $6.00 to $2.50 but kept a Market Perform rating. Despite the disappointing first quarter, Beyond Meat anticipates an improvement in the next quarter with projected sales between $80 million and $85 million. This expected increase is attributed to regaining shelf space at two major retailers, which plan to reintroduce Beyond Meat products in the frozen vegetarian section.
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