Beyond Meat: Can new generation of products save the stock?
In This Article:
Plant-based food brand Beyond Meat (BYND) is scheduled to report fourth-quarter earnings next Tuesday, February 27. Yahoo Finance Executive Editor Brian Sozzi breaks down his conversation with CEO Ethan Brown and the meat substitute company's upcoming Beyond IV products — cutting down on fat and sodium counts — as it seeks to boost sales. Beyond Meat's stock has fallen nearly 60% over the past year.
For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live.
Editor's note: This article was written by Luke Carberry Mogan.
Video Transcript
BRAD SMITH: We're looking at Beyond Meat shares down almost 60% in the last year. This comes as sales have fallen, expected to be down over 17% in its latest quarter. The alternative meats category sales are down over 33% from a year ago, according to recent data from Circana.
Now, Beyond Meat is introducing a new product line today. And could it be the company's saving grace? Our very own Brian Sozzi here with the inside scoop, or bite, on this one.
Sozzi, you spoke to Beyond CEO. What did he have to say? And is new meat going to save Beyond Meat?
BRIAN SOZZI: You guys are really putting me to work today, Brad. From chocolate to plant-based meat. So very interesting chat with Ethan Brown over at Beyond Meat. Making a big change on how their products are made, removing things like canola oil and coconut oil, and moving to avocado oil.
Sounds like a small change on paper, but it's not. What this essentially does-- and I have the bigger story on the "Yahoo Finance" home page now-- it is reducing fat counts and improving sodium, or just lessening sodium count in the products.
Now, these have been some of the highest-- I think, really, the area where critics have really hammered Beyond Meat and Impossible Foods and everybody that makes plant-based food because they don't necessarily have maybe the best or most robust nutritional aspects.
So, again, Beyond Meat pulling back on some of these higher fat ingredients. Also, reducing its ingredient list or the number of ingredients, which Ethan tells me should help improve the profitability of these items. Like you see on the screen, that is, in fact, the new ground beef. And you see it there.
For the first time, again, the American Heart Association award. But, guys, as you mentioned coming into this, this is a stock that has been really through the wringer. It came out of the gate. Really, robust IPO several years ago. It hit a high I think of $234.90. And how it has really crashed back down to Earth.