On Thursday, Beyond Meat, a plant-based substitute meat seller, had its shares tumbling down by 18.00% hitting new lows.
Its stock price went down by -18.27% to $10.20 per share on May 11. However, it is expected to go up by 0.69% to $10.27 in the upcoming session.
The company mentioned selling up to $200.00 million worth of new shares. Meanwhile, its cash pile decreased. In the past months following its 2019 initial public offering, the firm’s stock dropped from over $239.00 highs.
Late Wednesday, the El Segundo, California company reported its fifth quarter of plunging year-over-year revenue. On the other hand, it anticipates better sales growth in 2023’s second half.
Moreover, Beyond Meat stated it went into an equity distribution contract with Goldman Sachs. After the slide, it planned to sell hundreds of millions worth of shares, equating to 30.00% of its market cap. Based on analysts, they have a sell rating on their stock.
Furthermore, plant-based products made by the entity and other producers often sell at prices comparable to actual meat products. Nonetheless, it failed to catch on with consumers, as expected by several investors. Also, decades of high inflation weighed on the demand.
In addition, Beyond Meat lost money yearly, dropping to $259.00 million in the quarter. It is down from the $310.00 million from the previous three months.
CEO of Beyond Meat Plans for Improvement
Ethan Brown, CEO of Beyond Meat, told analysts they are turning a corner. This came after the company decreased its operating losses despite selling fewer products.
Last year, the firm implemented a sustainable growth plan since its growth curve significantly flattened in the past 18 months.
Also, the CEO said Beyond Meat is aiming for growth opportunities. It focuses on retail in the US, particularly refrigerated ground meat-like products, which declined the most.
Moreover, it is improving its marketing to persuade customers about the benefits of its products. Additionally, the company wants to clear up myths about its ingredients and manufacturing.