markets close in 2 hours 35 minutes RIGHT NOW: Hot PCE index hits tech stocks like Apple, Tesla Rumble Inc. (RUM) Stock Price, News, Quote & History - Yahoo Finance U.S. Currency in USD Follow 2W 10W 9M 8.75 +0.44. (RMBL) NasdaqCM - NasdaqCM Real Time Price. (RMBL) Stock Price, News, Quote & History - Yahoo Finance Dow Futures +109.50 RumbleON, Inc. Insider and Institutional Ownership 91.9% of Wix.com shares are. Beyond Meat is missing these critical ingredients right now.Rumble stocktwits Rumble (NASDAQ:RUM – Get Rating) and Wix.com (NASDAQ:WIX – Get Rating) are both computer and technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their valuation, dividends, risk, institutional ownership, analyst recommendations, earnings and profitability. There are better growth stocks for investors to own, with clear market-share strength and solid profitability. That's why the stock doesn't look appetizing, even after its price has dropped by over 80% in 2022. And it isn't clear whether consumer preferences will shift back to food products like plant-based burgers, sausages, and chicken products. The brand is also likely to be a big player in the plant-based meat niche, once it survives the current slump.īut investors have no visibility into that stabilization right now, and losses will likely continue well into 2023. The Q3 earnings report confirmed that management was right to take aggressive action in slashing its cost base. For context, the company has burned through $270 million of operating cash in the last nine months. That cash flow might arrive as early as late 2023, executives project.
#Beyond meat stock discussion full#
"Beyond Meat is executing a full force pivot to a sustainable growth model, emphasizing the achievement of cash flow positive operations," CEO Ethan Brown said in a press release. In this report, it outlined even more aggressive steps to rightsize the business. Management already announced a 19% cut in its global workforce. In that environment, Beyond Meat needs to shift to a cost-cutting and cash-preservation posture in hopes of maintaining a strong brand position for the day when industry trends finally stabilize.
These factors put the company in a more defensive position since the industry is shrinking, and product launches aren't slowing the sales slump. People aren't feeling adventurous in trying out new flavors and products, such as Beyond Meat Jerky, either.īYND Operating Margin (TTM) data by YCharts. Consumers aren't willing to pay higher prices for plant-based proteins as inflation pressures their budgets. Management's discussion of what went wrong implies more pain ahead for the business. Beyond Meat's gross profit margin was negative, and operating losses ballooned to $90 million, or just over 100% of sales, compared to $54 million, or 51% of sales, a year ago. Volumes were down 13%, even after the company slashed prices by an average of 11%.Īs you might expect, the combination of falling volume and declining prices had a brutal impact on the bottom line.
Sales in the Q3 selling period that ended in late September suggest a widespread preference shift away from Beyond Meat's plant-based products that had been popular in earlier phases of the pandemic. It turns out that reduced forecast was too optimistic. Beyond Meat lowered its 2022 outlook dramatically after its last report, saying it might only grow sales by around 3%, rather than the 21% spike they had been targeting. Investors came into the Q3 announcement with low expectations.
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