"Shares of El Segundo-based Beyond Meat fell to less than $1 after a debt deal, down from their 2019 peak of nearly $235. The plant-based meat maker has seen sales plunge from $465 million in 2021 to $326 million last year as consumers return to animal protein. Second-quarter sales dropped 20%, part of a broader 18% decline across the U.S. plant-based meat industry over the last two years."
"The stock-diluting deal was spurred by declining sales at the company, which makes pea-based foods that mimic the taste of beef, chicken and pork. "Animal meats are in the true cyclical fashion of consumer trends, having a moment that currently leaves less room for our products and brand," founder and Chief Executive Ethan Brown told analysts during the company's August conference call. "You've got these cultural moments that occur. And we happen to be on the other side of the particular moment.""
"What does it cost a company when it's no longer in the zeitgeist? For stockholders in Beyond Meat, perhaps as much as 99% of their money, if they bought at the top of the market. Beyond Meat went public in 2019 in an initial stock offering that saw its shares almost triple in price and then hit nearly $235 within months, as the public, restaurant chains and the media alike were captivated by the new food technology, which made plant-based burgers more than just palatable."
Shares of Beyond Meat plunged below $1 after the company agreed to issue up to 326 million new shares to note holders in a debt-reduction deal. Revenue fell from $465 million in 2021 to $326 million last year, with second-quarter sales down 20% and the U.S. plant-based meat category dropping about 18% over two years. The company makes pea-based products that mimic beef, chicken and pork. Consumer demand has shifted back toward animal proteins after an early pandemic surge for plant-based options. The 2019 IPO drove shares to nearly $235 before the subsequent collapse.
Read at Los Angeles Times
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