Faced with declining liquidity and high debt, Beyond Meat (BYND) negotiated a convertible bond offering in 2021 to survive. Since then, the company has failed to increase revenue, develop new markets or stem extensive and regular quarterly losses. The Company is now in discussion with bondholders concerning a restructuring of the balance sheet. Despite tweaking products, packaging and promotion, the reality is that the company is heavily in debt, facing deadlines on $1.1 billion in convertible bonds. Management has lost the confidence of analysts, shareholders, customers, consumers and the financial community.
Basically, the demand for non-competitively priced plant-based substitutes for meat evaporated after the 2019 IPO with a downhill progression in share price from a July 28 2020 high of $244. Currently, Beyond Meat convertible notes trade at an 80 percent discount and market capitalization of $397 million on July 22nd is 110 percent lower than the equivalent month in 2023.Twelve month trailing operating and profit margins are respectively -70.7 and -102 percent. The 52-week range in share price is a decline from $17.24 to %5.58 with a 50-day moving average of $7.04. Effective March 30th at the end of Q1 2024 BYND had an accumulated deficit of $1,135 million.
Basically, Beyond Meat is a company with a great future behind it.