Fake meat doesn’t work? Beyond Meat collapses due to slowing sales, falling inventory and failed partnerships

Plant-based company Beyond Meat is facing major hurdles despite the curiosity of some people looking for an alternative to meat amid the shutdown of meatpacking plants due to the Covid pandemic.

Many industry analysts are warning of a looming disaster as the company posted a $100 million net loss in May and sees multi-year partnerships with brands such as McDonald’s and Taco Bell as underwhelming as its stock has fallen 74 percent over the past year. . .

May report was just the latest admission that Beyond Meat is not living up to the high expectations that were set only a few years ago. The company admitted in its latest report that it has a “history of losses and we may not be able to achieve or maintain profitability” for the foreseeable future.

Many industry analysts are warning of a looming disaster as the company posted a $100 million net loss in May. In the photo above, the price of the company’s shares for the last year.

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

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

All of this has led to some stomach upset for investors as Beyond Meat stock prices, which peaked in July 2019 at over $234 a share, began to decline steadily a year ago and are now trading at around $32. . Overall, stocks have fallen 74% over the past year.

Bad sentiment is also being felt within the company as Bloomberg reported that CEO Ethan Brown told employees that 40 jobs were being cut as part of an attempt to cut costs.

“Despite the complexity of this decision, it is part of our broader strategy to reduce operating costs and support sustainable growth,” Brown wrote.

Beyond Meat seemed poised to dominate the artificial meat market after announcing in early 2021 a three-year partnership with McDonald’s, as well as deals with big fast food players like KFC, Dunkin’ Donuts and Subway, among others.

But none of the test launches have resulted in long-term success, as many Beyond Meat partners have either not expanded their plant-based options to more restaurants or eliminated menu items entirely. Sales of the McDonald’s McPlant product were reportedly disappointing in many places, with some restaurants cutting off service altogether.

The company admitted in its latest report that it has a

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

“Beyond Meat must drastically cut costs and cut costs or it will go bankrupt,” wrote New Constructs CEO David Trayner.  Pictured above is Kim Kardashian, who was recently hired as a brand taste consultant for an online ad.

“Beyond Meat must drastically cut costs and cut costs or it will go bankrupt,” wrote New Constructs CEO David Trayner. Pictured above is Kim Kardashian, who was recently hired as a brand taste consultant for an online ad.

This year, the company partnered with Kim Kardashian in which she ate some of her products for online advertising.

As bad as it gets, the worst could be on the horizon. Market Review cited a recent analysis by independent research firm New Constructs that listed Beyond Meat as a “zombie stock” that could soon reach $0 per share.

“Beyond Meat must drastically cut costs and cut costs or it will go bankrupt,” wrote New Constructs CEO David Trayner. “Companies with a lot of cash and little cash are risky in any market, but especially now.”

“With only $548 million in cash and cash equivalents at the end of Q1 2022, Beyond Meat’s cash balance could only sustain cash outflows for 10 months after Q1 2022. Raising additional capital to finance further cash burns is likely to be costly and bad news for existing and new shareholders.”

The company plans to release its final quarterly report after the markets close on Thursday. His latest report, released in May, showed the company was dealing with stagnant earnings and a plummeting stock price.

In this report, company executives acknowledged the decline in revenue and listed several issues that could further hurt the business. These include the launch of new products, namely Beyond Meat Jerky, with lower margins than previous products and weak retail demand.

Company officials also said they expect the effects of Covid and related public health measures to continue to be felt in the future, in addition to inflation and supply chain disruptions.

Partnerships with McDonald's, Taco Bell and KFC (see above) did not pan out as the company had predicted.

Partnerships with McDonald’s, Taco Bell and KFC (see above) did not pan out as the company had predicted.