Beyond Meat, the plant-based meat company has struggled in recent quarters with declining sales, production missteps, and a 91% decline in its stock price.
What happened: Beyond Meat, the plant-based meat company, has struggled in recent quarters with declining sales and a series of production missteps.
Despite the company's pursuit of growth, it has struggled to execute its vision, leading to mounting expenses and a 91% decline in its stock price.
Why it matters: Beyond Meat is a significant player in the plant-based meat industry and its struggles have had an impact on the market as a whole. The company's high valuation and disappointing earnings results have caused concern among investors and have contributed to the overall decline in the stock price.
The big picture: Beyond Meat's struggles come at a time when interest in plant-based meats has waned as consumers, faced with inflation, focus on shopping for affordable basics.
A shift in consumer behavior, combined with increased competition from other plant-based meat companies like Impossible, has led to a challenging market environment for Beyond Meat.
Between the lines: Beyond Meat's production issues and high valuation have been major factors in the company's struggles. The company has also faced criticism for its use of pea protein, which some have questioned as a sustainable source of protein for its products.
Flashback: Beyond Meat was founded in 2009 with the goal of producing healthier and more sustainable alternatives to animal-based meat.
The company has had a lot of success in recent years, with its plant-based burgers and sausages being sold in over 50,000 locations worldwide.
By the numbers: Beyond Meat's revenue has declined in recent quarters, leading to a decrease in the company's stock price. The stock is down 91% from its peak in 2019.
Liquidity looks precarious, with only $390 million in cash on the company's most recent balance sheet (versus -$270 million of YTD cash burn).
Cash burn is still at ~$90 million per quarter, and if it stabilized at this level, would mean the company has 4-5 quarters left before it runs out of money.
What they're saying: "Beyond Meat's stock still looks too expensive to analysts," according to MarketWatch. "Management's credibility is a big question here" according to Bill Maurer.
Catch up quick: Beyond Meat, the plant-based meat company has struggled in recent quarters with declining sales, production missteps, and a 91% decline in its stock price.
The company's high valuation and increasing competition in the plant-based meat industry have contributed to its struggles. Despite these challenges, the company has continued to innovate and expand its product offerings.