Beyond Meat exceeded analysts’ expectations for both revenue and earnings in the third quarter, but the plant-based meat company lowered its full-year revenue forecast. The company saw strong growth in its US retail and foodservice channels, but international foodservice revenue declined. Beyond Meat is focused on bolstering its cash reserves and restructuring its balance sheet in the coming year.
BofA Securities analyst Curtis Nagle downgraded Beyond Meat (BYON) to ‘Underperform’ from ‘Neutral’, citing concerns about the company’s struggling turnaround efforts. While Beyond has reduced costs and transitioned to an asset-light model, revenue declines persist, and the analyst questions the effectiveness of partnerships with struggling retailers. Despite efforts to revive its three brands, customer affinity remains tied to marketing and promotions, raising doubts about near-term improvement.
Beyond Meat’s stock dropped significantly on Monday after the company reported a decline in revenue for the second quarter. While exceeding revenue expectations, the company missed on its earnings per share target. Despite CEO Ethan Brown’s optimistic outlook for 2024, the company’s financial performance and debt burden continue to raise concerns.
