"Beyond Meat Inc. ( NASDAQ: BYND) has entered a flat spin and is poised to be destroyed as it hits its bottom. In the most recent quarter, revenue dropped 13% to $70 million. The company lost a staggering $111 million, compared to $27 million in the same quarter a year ago. Projections for the current quarter put revenue at as little as $60 million. What started as a promising business in 2009 is now in ruins."
"Beyond Meat President and CEO Ethan Brown made a wildly inappropriate comment. He has "genuine optimism and excitement regarding our future." What Beyond Meat has not admitted is that there is no longer any reason for it to exist. It has ruined the prospects and pocketbooks of its shareholders. The stock traded for $235 on July 26, 2019. It barely trades above $1.20 today."
"The Food Institute recently reported that Beyond Meat will likely go bankrupt in 2027, when much of its substantial debt comes due. "On the current path, bondholders will take over the company via bankruptcy," the publication wrote. Late last month, the company set a deal to restructure its financials via a convertible note. At the time, Reuters wrote, "Beyond Meat shares tumbled as much as 58% on Monday"
Beyond Meat's revenue declined 13% to $70 million in the most recent quarter, and the company recorded a $111 million loss versus $27 million a year earlier. Current-quarter revenue projections reach as little as $60 million. The company negotiated a convertible-note restructuring after bondholder pressure and shares plunged following an exchange-offer settlement. Analysts project potential bankruptcy in 2027 when substantial debt matures. High retail prices, heavy processing, and inferior taste and texture compared with conventional meat have depressed demand. Persistent operational losses and mounting debt create a significant risk that the company may not recover.
Read at 24/7 Wall St.
Unable to calculate read time
Collection
[
|
...
]