Beyond Meat (BYND) stock wilted over 5% today despite the plant food maker dismissing concerns over the future of the business.
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Via a post on social media site X, the company, which makes plant-based meat alternatives, said: “Recent media stories suggesting that Beyond Meat filed for bankruptcy are unequivocally false. We have not filed nor are we planning to file for bankruptcy.”
Chapter 11 Claims
It came in response to an article by Daniel Kline, co-editor-in-chief of TheStreet, who argued in a story published on August 14 that given how Beyond Meat has reported “falling sales and dwindling cash,” that it is “headed to Chapter 11 bankruptcy.”
In the story, Kline also said that Beyond Meat “admitted it’s in trouble by hiring corporate restructuring expert John Boken from consultancy AlixPartners as interim chief transformation officer.” The company “does have time to fend off a Chapter 11 bankruptcy filing, but it also has limited, if any, prospects to meet its impending cash needs,” Kline said.
The company recently served up a weak set of Q2 results, with net revenues of $75 million, marking a 19.6% decrease from the previous year. U.S. retail channel revenues dropped by 26.7%. See below:
It said that it was implementing significant cost reduction strategies, including a reduction in force and operational efficiency improvements. It said Boken had been hired as interim Chief Transformation Officer to lead these initiatives.
Healthy Hopes
The company’s share price has declined 97% in the past five years as its alternative meat products have failed to catch on with consumers and businesses.
There had been a lot of hype around the company and its stock when it went public in 2019. But unfortunately, the early promise of plant-based meat alternatives never materialized.
However, there is still hope.
According to Grand View Research, the global plant-based meat market size was valued at $7.17 billion in 2023 and is projected to reach $24.77 billion by 2030. This is as more individuals become aware of the health risks associated with excessive consumption of red and processed meats.
Is BYND a Good Stock to Buy Now?
On TipRanks, BYND has a Moderate Sell consensus based on 2 Hold and 4 Sell ratings. Its highest price target is $4. BYND stock’s consensus price is $2.50, implying a $5.12% downside.
