The Beyond Meat Inc (NASDAQ: BYND) stock price has fallen 26.2% since the company released its Q4 and full-year earnings results on February 24, 2023. While the producer of plant-based meat alternatives reported a much more significant loss than expected, its results were better than analysts' consensus estimates, triggering a rally.
YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY.
However, BYND shares have given up all their gains over the past four days as investors deal with the declining demand for the company’s meat alternatives due to their higher prices than traditional meat. The high cost of living fueled by record-high inflation played a crucial role in the shift in consumer spending.
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Beyond Meat reported a net loss of $366 million in 2022, a significant increase from the $182 million loss recorded in 2021. The company’s CEO and Founder, Ethan Brown, noted that 2022 was an extremely challenging year for the firm and the entire meat substitutes industry as consumer shopping trends shifted significantly.
The company’s revenues dipped significantly in Q4 2022 as it recorded a 20.6% decline ($20.7 million) drop in sales. The firm’s overall volumes also shrunk as its sales fell by about 3,300 pounds. The firm’s sales to restaurants in the US fell 30% in Q4 compared to the previous year.
Luckily for Beyond Meat, US restaurant sales account for only 25.8% of all its sales.
Ethan Brown, Beyond Meat’s Founder and CEO, said: “The fourth quarter of 2022 ends a challenging year for our business and category, one marked by persistently high inflation and trading down by consumers among proteins, a slowing economy in key markets, and increased competitive activity. It seems reasonable that consumers may retreat from protein that can be 2x the price of its animal-based equivalent during periods of intense inflation and reduced buying power, and that a reduction in price given this dynamic would spur increased consumption.”
BYND shares are trading in the middle of a range and seem ready to keep falling. Before buying, I would wait for the shares to reach the $11.44 support level.
*This is not investment advice.
The Beyond Meat (BYND) stock price.
The Beyond Meat stock price has fallen 26.17% from its February 24 high of $22.93 to its current price of $16.93.
YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY.