It has consistently made losses, which has killed off the majority of 2022 stocks, and interest rates are still rising. This has left a lot of debt. There is apparently half a billion in cash, but BM is trying to grow, which is known to consume a lot of money, and fiscal policy raises questions.
2021 loss: 182 million
2022 estimated loss: 279 million
At this rate, they would be bankrupt in 2024, but of course, the economic situation is likely to improve, and so will the company’s results.
Rocket-like revenue growth also declined, which is poison for a growth company (the valuation was created in 2019 with super numbers and hype, and strong growth figures would have been required for continued take-off, and these have not been presented, perhaps due to COVID-19?).
2019, 239%
2020, 37%
2021, 14%
In the first quarter, it only increased by 1% from the previous year, which scared investors further, but the company itself is still aiming for around 20-30%.
Extremely strong competition (Tyson Foods, Impossible Foods) in 2021, and competitors apparently caused price competition.
Beyond Meat has a good brand. They even hired Kardashian as some kind of food tester, and partly because of that, the stock has risen 43% in a month, but questions remain, and that has been poison.
The start of 2022 was modest, but the company still announced that the goal is to achieve a 20-30% increase in sales revenue. It would be quite a feat if they did it, and if they succeeded, the stock would certainly react positively with both hands.
I would wait for positive practical news, but of course, there could be growth potential. I myself am also sensitive to the brand, probably far too much.
More knowledgeable people, please correct me if/when I’m wrong. I’m just rambling as a novice here, so don’t make any investments based on this.
It was speculated on Reddit that Beyond and Tattooed Chef would be hit, as consumers may no longer choose the more expensive plant-based option in stores as recession/inflation increases, and another reason for the share price drop was the situation in Ukraine.
So, general uncertainty (recession, inflation, Ukraine) first cuts into these hype, (also techno-,) trend, marginal stocks, which people start to divest from their portfolios.
I myself have continued to add to the Rize Sustainable Future of Food ETF (Beyond’s share ~4%) with monthly savings. So I believe the decline was temporary. Let it be half a year, a year or three years until consumer confidence is won back again.
I largely agree, but then I wonder if I’m even the right target audience. I haven’t eaten red meat in almost 10 years, and I’ve been on a completely meat-free diet for almost 2 years. Since I haven’t craved “burgers,” I’ve never bought Beyond Meat burger products. This is probably a fairly unsurprising line of thought…
Well, last week I invested in the company, and I had to test the product.
From what I remember about the taste of burgers, this one was incredibly spot-on in taste, chewiness, and appearance! So, is this important?
I think it’s very important that there are product families that try to imitate the taste and texture of meat. This will get the large masses, for whom this is still important, to switch to plant-based alternatives.
Whether I and people like me buy it is not decisive, but whether the large masses buy it!
While this is a reply to a many-years-old message, I think that’s an extremely poor cliché. I’ve been a vegan for about four years myself, and I don’t hate the taste of meat. Beyond is perfect for a restaurant burger. I rarely use it at home; I use Pouttu’s (Pouttu) Meeat products more often—daily. They imitate meat too.
I’ve tried to examine this as a whole. I mean, if one considers this situation globally. There are fewer poor people all the time, and more middle class. This directly means an increase in protein consumption, and when you add population growth to that. On the other hand, cultivated land is pretty much in use, and if new land is to be taken into use, it means cutting down forests, which of course happens all the time, but cannot happen indefinitely. Climate change plays its own tricks; harvests fail due to drought, etc. Perhaps in some more northern regions, the growing season will lengthen; I can’t comment on that.
But otherwise, the equation seems a bit impossible. So how to get more protein when there’s pressure to reduce meat consumption? Well, these various meat substitute manufacturers could be the solution.
But is Beyond Meat or any other company currently such that an investor could get returns from it? Or should one get involved by diversifying and with a very long-term perspective, or alternatively, if one thinks of investing because technology is being developed, which is not a bad thing either, but one can’t really calculate return percentages from that…
I didn’t really find answers to my questions, and this message doesn’t really have anything specific to offer to Beyond Meats, but perhaps it could spark a discussion about the topic and the company?
This has never found its way into my portfolio, but it’s very confusing how the stock and results are so dismal. I’ve been a vegetarian for 20 years, and I have to say that Beyond is one of the best patties in burgers. You can also almost always get it even from very small grills and surprising places in Finland.
I thought about buying this back then precisely because everyone praises it and it’s found everywhere.
I don’t know how the company screws up this business like that.
