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 after the plant-based meat maker announced an early settlement of an exchange offer with its bondholders through the issue of fresh shares and notes to manage its debt.”
Meatless meat had a brief period of success. However, demand cratered for several reasons. One was the high price. Another was that the food was highly processed. Another issue was that the taste and texture differed significantly from those of regular meat. The idea that it was healthier may have been true, but it was not enough to offset these problems.
The company can overcome none of the meatless meat challenges. Beyond Meat will never recover.
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