Beyond Meat Stocks Aren’t Sizzling Hot Anymore
After garnering mixed reactions from yesterday’s earnings call, Beyond Meat stocks are no longer selling as hot as they want. The company’s shares, BYND, are seen falling in sessions and even during the after-hours of the market.
Investors immediately cashed out as they weigh on the fundamentals faced by the faux meat producer.
Dismay was the mood of yesterday’s earnings call after the Los Angeles-based firm announced its EPS. Beyond Meat showed that its earnings per share failed to reach its projections, thus leaving a bittersweet after taste.
Official data from the company reported that BYND shares lost 0.01 cents during the fourth quarter of its fiscal 2019. That would, of course, upset the firm’s investors because instead of profiting, the actually lost dimes.
The projected earnings per share of the company prior to the release was only 0.01 cents. But instead of earning that small amount, it lost that amount.
The earnings per share weighed the company’s performance in the stock market. In fact, it even countered the upbeat figures the company presented in its revenue growth.
Beyond Meat also reported yesterday that it has generated about $98.48 million, easily crushing the projected $81.15 million prior.
During the after-hours, the company’s stocks dropped by 10.50%, that’s about 11.14 points.
Experts say that BYND investors are hungry and that the company has not been able to satisfy their appetites.
The recent moves of the company, such as its collaboration with Starbucks Canada, didn’t seem to satisfy them.
Growing List of Vegetarian Competitors
The downbeat results of the fourth-quarter earnings per share of the firm came in a crucial time as the market grows. More and more companies produce alternative products for Meat having popped up, and its starting to threaten Beyond Meat.
From giants in the industry to budding firms, the number of competitions climbs along with the demand. This is also one of the main reasons why the company is underperforming in the stock trading sessions.
The latest company that entered the plant-based food industry is Cargill, one of the largest, if not the largest private company in the United States.
Other companies include the likes of Nestle, another behemoth in the food industry. The company is known not just in the United States but is also a big force in the international food market.
Just last year, Tyson Food, another giant in the meat production of the United States, announced new alternative food products. Kellogg Company, Kroger, and Hormel Foods Corporation are also some of the companies entering the competition.
Despite being recognized for more than a decade, Beyond Meat stocks are still vulnerable to the competition. But that does not mean its heads up is useless as its still one of the most recognizable plant-based alternative meat producers.
