"And unfortunately, the alternative meat sector isn't so hot. According to LATimes.com, "The entire U.S. plant-based meat and seafood industry saw a 28% drop in unit sales and an 18% drop in revenue to $1.17 billion over the last two years, according to a report by the Good Food Institute, a nonprofit that advocates for alternative proteins. The downturn also hit markets outside the United States.""
"Unfortunately, BYND is still disconnected from reality. The short covering spree and the Walmart news are certainly exciting. Unfortunately, the rally won't last. BYND is still burning cash, it's not profitable, and consumer interest is dwindling. We also have to consider that there's not a lot to get excited about under Beyond Meat's hood. In its second quarter, revenue dropped 20% year over year to $75 million, which was short of expectations. It also withdrew its full-year guidance. There's also the $1.2 billion in debt, and about $117 million in cash on hand."
Beyond Meat's stock surged on short covering and expanded Walmart distribution, including plans to increase availability and a Beyond Burger 6-Pack at over 2,000 stores. Trading volume spiked far above average. Financially, the company remains unprofitable, with second-quarter revenue down 20% year over year to $75 million, withdrawn full-year guidance, about $1.2 billion of debt, and roughly $117 million in cash. Consumer demand for plant-based meat has declined, with U.S. unit sales down 28% and revenue down 18% per the Good Food Institute report. Analysts have cut price targets and cited shareholder dilution and other risks.
Read at 24/7 Wall St.
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