BEYOND MEAT (BYND) –

Valuation Too High For Actual Sales Growth Being Realized

(Originally Posted 3/3/2021)

For months, we informed our Subscribers that BYND’s high valuation of 25x-30x price/sales was excessive for sales growth that was declining quarter-to-quarter for several quarters.

Beyond Meat’s Q4 earnings report last week revealed weak sales growth, as we expected.    Q4 sales increased only 3.5% year-over-year, and with no profits, instead a net loss of ($0.40)/share.

Yes, the company announced a strategic agreement with McDonald’s for products “being tested”, but sales reality is yet to be determined.  Plant-based foods are here to stay, and the market will grow substantially, but the competition will grow and perhaps even more so.

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See https://beyondmeat.com