Just 16 months ago, the street saw this name being worth more than $120, but another bad quarter or two will probably mean an average price target that will end up in the single digits. Since that Q3 earnings report, the average price target has dropped from $18.30 to $13.00, implying less than 5% of upside from Thursday's close. That's not an appetizing thought with the surge in interest rates combined with the stock's fall from its 52-week high of $74 to nearly single digits currently.Īt this point, the street doesn't see much upside for the name. It remains to be seen what will happen in the next few quarters, but I still believe a capital raise is possible. However, the company has burned about half a billion in cash in the last twelve months, ending in September, finishing the period with $390 million. In the Q3 earnings release, management said it is targeting cash flow positive operations within the second half of 2023.
Even still, the net loss was over $100 million, and while 2023 is expected to be better than 2022, the company is still projected to lose a few hundred million.
As a result, the expense structure has gotten way out of whack, with gross margin dollars being negative in Q3, including some one-time items. The company has had aggressive growth targets over the years, but this business has failed to take off as investors were hoping.
In just the past 26 months, revenue estimates for the 2023 year about to start have absolutely cratered, as the chart below shows.Ģ023 Average Revenue Estimate (Seeking Alpha) The high end of that guidance was cut by nearly $200 million in just a couple of quarters.
#BEYOND MEAT STOCK OPINION FULL#
Management took down its full year forecast for revenues to a range of $400 million to $425 million versus a street consensus of nearly $427 million. When I discussed that ugly earnings report back in November, I mentioned the company's very dismal Q4 revenue guidance. At the end of that period, the international food service had the smallest number of distribution outlets of the company's four major divisions. Worse yet, the Q3 revenue figure for this segment was down more than 42% from the year ago period. In the company's Q3 2022 earnings report, international food service revenues were just $10 million, or a little more than 12% of the company's total. While adding more sales is usually a good thing, the amount here may not be very material in the short term. Unfortunately, volume was only about 20% above the 3-month average, which isn't the strongest sign of investor confidence in my opinion. Shares were up more than 15% at one point, but ended the day with a gain just short of double digits, percentage wise. Thursday's announcement was that the Double McPlant burger, featuring two Beyond Meat patties, will be rolled out in all restaurants across the UK & Ireland on January 4th, 2023. While it was nice for longs to see this beaten down name rally a bit in percentage terms, the jump was likely just another opportunity to sell. The plant based meat company saw its shares rally more than 9% on the day, even after backing a bit off their daily highs, as the company announced a new product offering in partnership with McDonald's ( MCD ). One of Thursday's biggest winners in the market was Beyond Meat ( NASDAQ: BYND).
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