8/13/2023 0 Comments Beyond meat stock forecast 2022Most pertinently, Bayer adds, “The current landscape does not spell trouble for most companies in the space. The excitement dies down as early industry leaders are met with pushback, challenges, and original shortcomings of the innovation are brought to light.” The graph “does a terrific job of defining how a promising innovation enters the market with a bang, quickly gaining momentum, investments, and like-minded innovators. “As a long-time problem solver and innovator, I’ve found guidance in a tried and true model explaining the arc of innovation - the Gartner hype cycle,” explained Eben Bayer, founder of Ecovative Design and MyForest Foods, in an Op-Ed for vegconomist. The cycle represents the maturity, adoption, and application of new technologies and offers a conceptual presentation of their maturity, and is certainly worth revisiting in this context. The Gartner cycle has been referred to several times as an accurate explainer of our current situation, as recently cited by ex-Impossible Foods and Tesla exec Rachel Konrad here. And there’ll be a couple of players left standing.” © Gartner The Gartner Hype Cycle Chief Executive Steven Cahillane told analysts: “We see an imminent shakeout coming. revealed that it was to retain its plant-based-food operations. “Though we remain the category leader in refrigerated plant-based meat the volume of competition has eroded some of our share…a shakeout does appear to be underway, and we expect more brands to either retreat or consolidate a less cluttered playing field to emerge in the midterm,” Brown commented at the time.Ī few short months later, in a strategic U-turn, Kellogg Co. Q4 revenue fell 1.2% in to $100.7 million, missing Street estimates by $1.25 million, yielding an adjusted loss of $1.27 which missed by 56 cents.© Beyond Meat The shakeout was always predictedīack in November 2022, Beyond Meat CEO Ethan Brown reported company losses in an earnings call, stating that inflation had taken a heavy toll on sales, with price-weary consumers opting for cheaper proteins as the cost of living soared around the planet. ![]() Plus, the company has reported a miss on both the top and bottom lines in the quarter. The market didn’t share the same level of the enthusiasm, however, particularly by the fact that inflation is also accelerating at the same time. CEO Ethan Brown called it an aberration and predicted that consumer demand would pick up through the year. The company, however, didn’t seem overly concerned. In the fourth quarter, there was a meaningful decline of 20% in retail sales in the core U.S. ![]() The company’s previous two quarters didn’t sustain the level of excitement and encourage consumer willingness to try meat substitute offerings at the grocery stores compared to the level of interest shown at the height of the pandemic. ![]() For the full year, ending in December, the loss is expected to be $2.89 per share, while full-year revenue is expected to rise 26.7% year over year to $588.87 million.Īnother factor that has impacted the company’s stock price recently is the decline in commercial traction, which has resulted in steepening losses. This compares to the year-ago quarter when the loss came to 42 cents per share on revenue of $108.16 million. For that to be true, on Wednesday the company will need to outline what its growth potential looks like.įor the three months that ended March, Wall Street expects the El Segundo, Calif.-based company to lose 98 cents per share on revenue of $111.50 million. After the recent selling pressure, some analysts believe the stock is oversold. What’s more, its gross margin has also come down considerably, declining to to 25.2%, down 490 basis points, while operating expenses grew by over 2,000 basis points. The company posted just 14% growth in 2021, down from 37% growth in 2020 and drastically below the 239% growth generated in 2019. The market’s bearishness regarding emerging competitive threats has proved true. Aside from valuation concerns, the company is also dealing with wage inflation and supply chain shortages which has impacted its once torrid growth pace. The stock’s decline has been due to a combination of factors. Ahead if its first quarter fiscal 2022 earnings results Wednesday, the market has seemingly given up on Beyond Meat’s ability to beef up its growth, especially when considering that the stock now trades lower than its first day of trading as an IPO. Investors want to know if now is time to nibble on some shares. What will it take for Beyond Meat ( BYND) stock to finally pass the taste test? The plant-based meat giant has seen its stock plunge more than 40% year to date, including a decline of 61% and 20% in the respective six months and thirty days.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |