That’s why Beyond Meat’s gross margin turned negative in the first nine months of 2022, compared to its positive gross margins of 25% in 2021 and 30% in 2020. It expects its gross margin to remain negative in the fourth quarter, but to also improve slightly on a sequential basis as it pays fewer underutilization and termination fees. But despite that slight improvement, its margins will likely remain negative and its losses should widen for the foreseeable future. CEO Ethan Brown blamed that slowdown on a "temporary disruption in U.S. retail growth" for both its "brand and the broader category" of plant-based meat products. https://dotbig.com/markets/stocks/BYND/ During the fourth-quarter conference call, Brown predicted the company’s growth would accelerate to "higher levels" again in 2022 as more restaurants and retailers launched fresh trials for its products. Rebecca Scheuneman is an equity analyst on the consumer team for Morningstar Research Services LLC, a wholly owned subsidiary of Morningstar, Inc. She covers food manufacturers, food distributors, and North American grocers.Before joining Morningstar in 2018, Scheuneman spent more than eight years as an analyst/portfolio manager at Forester Capital Management, covering the consumer and healthcare sectors.
- First, Chief Operating Officer Doug Ramsey was arrested in late September for an alleged assault at a college football game.
- “Frozen plant-based chicken is the largest single subcategory in all of plant-based meats and continues to grow at a double-digit pace,” he said.
- According to 25 analysts, the average rating for BYND stock is "Sell." The 12-month stock price forecast is 18.29, which is an increase of 37.73% from the latest price.
- In its most basic form, stocks that are trending up are desirable by investors while stocks currently falling must be unattractive.InvestorsObserver’s Sentimental Indicator tracks both changes in price and volume to analyze the most recent trends.
It is this reason that could see investor optimism for the BYND stock continues to rise going into the next quarter. In investing, sentiment generally means whether or not a given security is in favor with investors. It is typically a pretty short-term metric that relies entirely on technical analysis. That means it doesn’t incorporate anything to do with the health or profitability of the underlying company. In its most basic form, stocks that are trending up are desirable by investors while stocks currently falling must be unattractive.InvestorsObserver’s Sentimental Indicator tracks both changes in price and volume to analyze the most recent trends.
Research & Ratings Beyond Meat Inc.(BYND)
Cl A MDLZ, +1.32%rose 1.32% to $65.85 and Unilever PLC ADR UL, +1.00%rose 1.00% to $48.69. Trading volume (2.2 M) remained 1.2 million below its 50-day average volume of 3.5 M. Beyond https://dotbig.com/ Meat’s third-quarter 2022 results reflect lower sales and a wider loss compared with the year-ago period. The operating landscape remains impacted by factors like inflation.
“The category had been growing at double-digit for a long time and was expected to continue, but what we saw this year is that the number of consumers who were buying it did not increase,” said Justin Cook, the U.S. consumer products research leader at Deloitte. What investors and others are debating now is whether Beyond Meat’s struggles are specific to the company or a harbinger of deeper issues in the plant-based meat industry. In the market, a comparison of Beyond Meat Inc. and its peers suggest the former has performed considerably weaker. Data shows BYND’s intraday price has Beyond Meat Incorporated stock changed -9.13% in last session and -86.43% over the past year. Elsewhere, the overall performance for the S&P 500 and Dow Jones Industrial shows that the indexes are down -2.11% and -1.54% respectively in the last trading. Here’s one little-known company — trading undiscovered below 25-cents per share — that’s advancing one of the largest and highest quality REE deposits in all of North America… And that’s excellent news for individual investors like you who have the foresight to act decisively on an emerging megatrend that’s already being measured in the Tens of $Billions.
Since investors are able to bet on future trends of stocks using options, we consider the ratio of calls to puts when analyzing market sentiments . Analysts have a consensus estimate of $151.18 million for the company’s revenue for the quarter, with a low and high estimate of $127.2 million and $170 million respectively. The average forecast suggests up to a 1.20% growth in sales growth compared to quarterly growth in the same period last fiscal year.
While inflation played a role, so did a decline in the perception that plant-based meats are healthier than animal proteins. (The companies focus on the environmental benefits.) But the Deloitte analysts said another problem might be resistance BYND to a product that some segment of customers see as “woke” and linked to politically left-leaning ideas. Sales, which the company had expected to rise as much as 33 percent this year, are now likely to show only minor growth.
Beyond Meat Inc. stock falls Monday, underperforms market
Unlike other vegetarian products, Beyond Meat seeks to replicate the look, cook, and taste of meat, is targeted to omnivores and vegetarians alike, and is sold in the meat case. The products are widely available across the U.S. and Canada and in 83 additional countries as well. The firm’s products are available in retail stores and the food-service channel.
Beyond Meat Inc.
The company’s shares opened today at $12.79.Ross covers the Consumer Goods sec… As a result, “a shakeout does appear to be underway, and we expect more brands to either retreat or consolidate,” Mr. Brown said. Beyond Meat declined to comment for this article beyond the call with analysts. Beyond Meat Incorporated stock Some say the slowdown in sales is a product of food inflation, as consumers trade pricier plant-based meat for less-expensive animal meat. But others wonder if the companies have simply reached the maximum number of consumers willing to try or repeatedly purchase faux burgers and sausages.
While the company hoped to restore growth to its refrigerated products, which have some of the highest profit margins, Mr. Brown noted that it was expanding distribution for many of its frozen products. Beyond Meat’s chief executive, Ethan Brown, DotBig said his company was competing in an increasingly crowded field. Analysts at Deloitte, who conducted a survey of consumers this year, questioned whether the 53 percent who were not buying plant-based meats could be turned into customers.
First, Chief Operating Officer Doug Ramsey was arrested in late September for an alleged assault at a college football game. Ramsey was subsequently suspended and left the company earlier this month. Ex-FTX CEO Sam Bankman-Fried lost his entire $16 billion fortune in less than a week after his company filed chapter 11 bankruptcy protection on Friday. Yahoo Finance food reporter Brooke DiPalma breaks down the numbers from Beyond Meat’s latest https://dotbig.com/ earnings report. Two of these stocks could enjoy a turnaround soon, while the other is seeing its business chugging along just fine. Sign Up NowGet this delivered to your inbox, and more info about our products and services. Companies in the Consumer Goods sector have received a lot of coverage today as analysts weigh in on DR Horton (DHI – Research Report), Boxed (BOXD – Research Report) and Beyond Meat (BYND – Research Report).
This lets you compare stocks in a much more granular way than just seeing the typical five-tiered rating system used on most of Wall Street. Beyond Meat’s declining revenue, negative gross margin, and widening losses all strongly indicate the plant-based meat craze may be over. However, the company still believes its operating DotBig cash flow will turn positive by the second half of 2023 as it aggressively cuts costs and rightsizes its business. It already laid off more than a fifth of its workforce over the past 12 months, and it believes that reduction will lower its total operating expenses by about $39 million over the following 12 months.