Thursday 4 August 2022 10:43 PM Fake meat fail? Beyond Meat reels as sales slow, stock drops and partnerships ... trends now
Plant-based Beyond Meat is facing major headwinds - despite curiosity from some people looking for a meat alternative amid the Covid pandemic's meat packing plant shutdowns.
Multiple industry analysts are sounding warning bells of impending disaster as the company comes off a $100 million net loss in May and sees multi-year partnerships with brands like McDonald's and Taco Bell prompt lackluster enthusiasm - as its stock has dropped 74 percent in the last year.
May’s report was just the latest admission that Beyond Meat isn’t meeting the lofty expectations it set just a few years ago. The company acknowledged it has 'a history of losses, and we may be unable to achieve or sustain profitability' for the foreseeable future in its latest report.
Multiple industry analysts are sounding warning bells of impending disaster as the company comes off a $100 million net loss in May. Pictured above, the company's stock price over the last year
The bad vibes are also being felt within the company, as Bloomberg reported that CEO Ethan Brown told employees 40 jobs had been eliminated as part of a bid to cut costs. An agreement with McDonald's (above) has not helped the firm
All that has translated into some upset stomachs for investors, with a huge bite being taken out of Beyond Meat’s stock prices, which peaked in July, 2019 at over $234 per share, began to steadily decline one year ago and are now trading at around $32. Overall, the stock has dropped 74% in the last year.
The bad vibes are also being felt within the company, as Bloomberg reported that CEO Ethan Brown told employees 40 jobs had been eliminated as part of a bid to cut costs.
'While difficult, this decision is one piece of our larger strategy to reduce operating expenses and support sustainable growth,' Brown wrote.
Beyond Meat seemed poised to dominate the faux-meat market after announcing in early 2021 a three-year partnership with McDonald’s, as well
