3 Reasons to Avoid Beyond Meat Stock Like the Plague
Sunday, 14 April 2024, 13:45
Reasons to Avoid Beyond Meat Stock:
This stock is down for good reasons. If a stock price gets low enough, it can be tempting to consider buying some shares. Beyond Meat (NASDAQ: BYND) certainly qualifies as a discounted stock right now. Shares of the plant-based meat specialist are down over 50% in the past year and are 95% below their pandemic-era highs.
Not in the driver's seat
- Beyond Meat can't control its own destiny today.
- New product introductions weren't enough to rejuvenate growth last quarter.
- Sales declined 23% in its retail segment and slumped 26% in the restaurant division.
Gross profit slump
- Beyond Meat lost money on both a gross and net basis last year.
- Shoppers aren't willing to pay much of a premium for plant-based meat products.
- Sales volumes declined even though prices were cut.
Too risky
- Management is working on a restructuring plan for 2024.
- Management might limit product introductions to focus on the most profitable items.
- Investors should avoid this consumer staples stock for now.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.