Fake meat fail? Beyond Meat Slows Down as Sales Slow, Stocks Fall and Partnerships Don’t Succeed

The plant-based Beyond Meat is facing major headwinds — despite the curiosity of some people looking for a meat alternative amid the meatpacking plant shutdown in the Covid pandemic.

Many industry analysts are ringing warning bells of impending disaster as the company posts a $100 million net loss in May and sees multi-year partnerships with brands like McDonald’s and Taco Bell raise lackluster enthusiasm — its stock is down 74 percent in the past year.

mayo Report It was just a final admission that Beyond Meat does not meet the lofty expectations I set just a few years ago. The company acknowledged that it has a “history of losses, and we may not be able to achieve or maintain profitability” for the foreseeable future in its latest report.

Many industry analysts are ringing warning bells of impending disaster as the company incurred a net loss of $100 million in May. In the above picture, the company’s stock price over the past year

Bad feelings were also being felt within the company, with Bloomberg reporting that CEO Ethan Brown told employees that 40 jobs were being cut as part of an effort to cut costs.  Agreement with McDonald's (above) did not help the company

Bad feelings were also being felt within the company, with Bloomberg reporting that CEO Ethan Brown told employees that 40 jobs were being cut as part of an effort to cut costs. Agreement with McDonald’s (above) did not help the company

All of that has translated to investors’ stomachs upset, with a large share of Beyond Meat’s stock price taking, which peaked in July 2019 at more than $234 per share, began declining steadily one year ago and is now trading at around $32. . Overall, the stock is down 74% in the past year.

Bad feelings were also being felt within the company, with Bloomberg reporting that CEO Ethan Brown told employees that 40 jobs were being cut as part of an effort to cut costs.

“While this decision is difficult, it is part of our larger strategy to reduce operating expenses and support sustainable growth,” Brown wrote.

Beyond Meat appears poised to dominate the synthetic meat market after announcing in early 2021 a three-year partnership with McDonald’s, as well as agreements with major fast food companies like KFC, Dunkin’ Donuts and Subway, among others.

But none of the pilot tests resulted in long-term success, as many Beyond Meat’s partners didn’t expand their vegetarian options to more restaurants or eliminate menu items altogether. Sales of McDonald’s McPlant have reportedly been disappointing in many locations and some restaurants have stopped serving it entirely.

The company has acknowledged that it has

The company acknowledged that it has a “history of losses, and we may not be able to achieve or maintain profitability” for the foreseeable future in its latest report. In the above picture, the company’s stock price over the past five years

David Trainer, CEO of New Constructs, wrote,

David Trainer, CEO of New Constructs, wrote, “Beyond Meat must significantly cut costs and cut its cash burn, or else it will go bankrupt.” Pictured above is Kim Kardashian, who was recently hired as the brand’s flavor advisor in online ads.

The company partnered this year with Kim Kardashian, taking up some of its products for online advertising.

As bad as things were, the worst could be on the horizon. Market Watch He cited a recent analysis by independent stock research firm New Constructs in which Beyond Meat was listed as ‘zombie stocks’ that could soon reach $0 a share.

David Trainer, CEO of New Constructs, wrote, “Beyond Meat must significantly cut costs and cut its cash burn, or else it will go bankrupt.” “Companies with a big cash burn and little cash on hand are risky in any market, but especially now.”

With only $548 million in cash and cash equivalents on the balance sheet at the end of the first quarter of ’22, Beyond Meat’s cash balance could sustain its cash burn for only 10 months after the first quarter of ’22. The additional capital increase likely will come To fund more cash burn at a higher cost and be bad news for existing and new shareholders.

The company is due to release its latest quarterly report after markets close on Thursday. His latest report, released in May, showed a company dealing with stagnant returns and plunging stock prices.

In that report, corporate leaders acknowledged the revenue decline and listed several issues that could hurt the business. These include the launch of new products, Beyond Meat Jerky, with lower profit margins than previous products and weak retail demand.

Company officials also said they expect to continue to feel the effects of Covid and its attendant public health measures going forward — as well as inflation and supply chain setbacks.

Partnerships with McDonald's, Taco Bell and Kentucky Fried Chicken (shown above) did not end as the company expected

Partnerships with McDonald’s, Taco Bell and Kentucky Fried Chicken (shown above) did not end as the company expected