Beyond Meat Is a Terrible Company

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By Douglas A. McIntyre Published

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  • Beyond Meat Inc. (NASDAQ: BYND) stock has gyrated wildly recently.

  • It is still a company with products that few people want and terrible financial results going back years.

  • It sounds nuts, but SoFi is giving new active invest users up to $1,000 in stock for a limited time, and all it takes is a $50 deposit to get started. See for yourself (Sponsor)
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Beyond Meat Is a Terrible Company

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Beyond Meat Inc. (NASDAQ: BYND) stock is up 450% this week after huge gyrations up and down. However, what traders should look at is that it is a terrible company with products few people want and terrible financial results that go back years. While the stock may rise, its prospects never will. People don’t want “meatless meat.”

Last week, holders of its stock watched an event that could cause massive dilution. A block of  debt due in 2027 was pushed out until 2030. The net of the deal was worth $202.5 million. Bondholders will receive up to 325 million shares of its common stock. “The early tender results of its previously announced exchange offer to exchange any and all of its 0% Convertible Senior Notes due 2027, for a pro rata portion of up to $202.5 million in aggregate principal amount of its new 7.00% Convertible Senior Secured Second Lien PIK Toggle Notes due 2030  and up to 326,190,370 shares of its common stock,” Beyond Meat announced. It is fair to say many shareholders will not entirely understand an immensely complex transaction.

After that announcement, the stock promptly dropped from $2.28 to $0.50 a share. It then climbed as high as $7.69. Part of the run was apparently because it made a deal with Walmart to have its products in 2,000 stores. Of course, that does not mean anyone will buy it.

Beyond Meat’s revenue dropped to $75 million in the most recently reported quarter from $93 million in the same quarter a year ago. It lost $35 million.

The value proposition when Beyond Meat went public on May 2, 1999, was that people would buy meat made from vegetables instead of traditional meat from beef cattle. In reality, Beyond Meat products were expensive. With a long list of ingredients, it was heavily processed. People ended up puzzled about the ingredients. In theory, it was healthier than traditional meat. However, very few people wanted anything beyond the real deal.

Beyond Meat has not done a single thing to show any new appeal for its products. Arranging new financing will not change that. The stock may rise and fall, but that reality will catch up to the share price.

Meme Stock Madness: Will Beyond Meat’s 388% Pop End in Tears?

 

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About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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