Are Financial Pros Looking to Bet Against This Stock?

[View in browser]( [The Spill Logo] Proprietary Data Insights Financial Pros’ Top Packaged Foods Stock Searches in the Last Month Rank Ticker Name Searches #1 [BYND]( Beyond Meat Inc 73 #2 [GIS]( General Mills 58 #3 [KHC]( Kraft Heinz Company 34 #4 [BGS]( B&G Foods Holdings 21 #5 [MKC]( Mccormick & Company Inc 20 #ad [The Most Researched Tickers [FREE REPORT]]( Brought to you by [The Juice]( [Simplifying the World of Investing for You]( [The Juice - Simplifying the World of Investing for You]( Unpack the complex world of investing through the lens of some of the industry’s top investors. Subscribe to The Juice newsletter for FREE and lead the game like a pro! [Subscribe now.]( Is Beyond Meat Beyond Saving? Beyond Meat (BYND) patties taste great. They just aren’t great for you. What you give up in cholesterol, you make up for with copious amounts of fat. Like any diet trend, the alternative meat patty seems to have fallen out of favor. Beyond Meat faces lower demand, eroding already abysmal margins. Things are starting to look so bad, our Trackstar data suggests financial pros may be betting against the company. Here’s why. Beyond Meat’s Business Meat makes up far more of our diets than it should. The excess contributes to heart disease and takes an ecological toll. Beyond Meat wanted to change that with a meat alternative that tasted like the original. While not identical, Beyond Meat’s patties are delicious. However, the large amount of fat in the product offsets many health benefits consumers sought. That caused revenues to decline substantially, with excellent international growth failing to offset plunging U.S. demand. [Products Sold] [Source: Beyond Meat Q3 2023 Investor Relations]( Shares that once traded at over $200 now trade below $9. Many question whether Beyond Meat will survive, given its negative cash flow, heavy debt load, and growing competition. Financials [Revenue] Source: Stock Analysis Revenues grew spectacularly until 2022. The initial boom ran into reality as similar products hit the market, leaving Beyond Meat with almost no value proposition. It couldn’t explain why it was different or better than others. As sales collapsed, profitability did as well. Once positive gross margins turned negative. Yet, it’s worth noting that Beyond Meat never generated positive cash from operations, even during its best years. Investors eventually wised up to this and began dumping shares in earnest in mid-2021. Although $1.2 billion in debt might not seem like much, it’s more than it can handle. And given the $218 million in cash on hand, we expect Beyond Meat will need to raise capital in the next year. Valuation [GAAP] Source: Seeking Alpha Compared to established packaged goods companies, Beyond Meat looks like it’s beyond hope. Every major competitor generates positive cash from operations at a minimum. However, we also wanted to show Oatly (OTLY), another diet fad company that held the spotlight for a short time. Like Beyond Meat, Oatly burns through cash and will likely need to raise capital in the next year. Growth [Rev growth] Source: Seeking Alpha Beyond Meat may have survived had it continued to grow. Yet, the decline in demand over the last 3-years is too much to ignore. These companies live and die by operational efficiency. Lower demand means capital equipment sits idle, tanking profitability. Profitability [Profit Margin] Source: Seeking Alpha And it’s profitability that will ultimately undo Beyond Meat. Companies can survive sales drops, but only if they can adjust operations accordingly. Since Beyond Meat has never turned a profit, the chances of them figuring this trick out before the bank comes calling is slim. Our Opinion 0/10 We expect Beyond Meat to go bankrupt or get purchased by private equity eventually. The brand has some value. But the operations are broken beyond repair. If you own this stock, you do so at great risk. [-facebook-share]( [-twitter-share]( [-linkedin-share]( [-email-share](mailto:?body= %3Cbr+%2F%3E%0A%3Cb%3ENotice%3C%2Fb%3E%3A++Undefined+property%3A+stdClass%3A%3A%24previewText+in+%3Cb%3E%2Fvar%2Fwww%2Fhtml%2Fnl_forms%2Fsrc%2FICTheSpill%2Fautomate-ic-article.php%3C%2Fb%3E+on+line+%3Cb%3E102%3C%2Fb%3E%3Cbr+%2F%3E%0Ahttps%3A%2F%2Finvestingchannel.com%2F%3Fp%3D601759?utm_medium=ic-nl&utm_source=115000 ) News & Insights Just Spilled - [Why Financial Pros Soured on Nike]( - [Markets are volatile, stay on top of Alternative Investments like Real Estate, Private Equity…]( - [How to Ride the Lithium Craze]( - [Do You Own This ETF?]( [News & Insights-facebook-share]( [News & Insights-twitter-share]( [News & Insights-linkedin-share]( [News & Insights-email-share](mailto:?body= %3Cbr+%2F%3E%0A%3Cb%3ENotice%3C%2Fb%3E%3A++Undefined+property%3A+stdClass%3A%3A%24previewText+in+%3Cb%3E%2Fvar%2Fwww%2Fhtml%2Fnl_forms%2Fsrc%2FICTheSpill%2Fautomate-ic-article.php%3C%2Fb%3E+on+line+%3Cb%3E102%3C%2Fb%3E%3Cbr+%2F%3E%0Ahttps%3A%2F%2Finvestingchannel.com%2F%3Fp%3D601759?utm_medium=ic-nl&utm_source=115000 ) [We want to hear from you. Let us know your thoughts by clicking here]( [Ads] [InvestingChannel Logo](#) Follow us on: [Facebook Logo]( [LinkedIn Logo]( [Twitter Logo]( [Instagram Logo]( To ensure delivery of all emails, [allow us on your list](. Manage your subscriptions with our [preference center](. [Unsubscribe here.]( View our privacy policy [here](. Copyright ©2023 InvestingChannel. All rights reserved. 1325 Avenue of the Americas, Floor 27 & 28 New York, New York 10019 Disclaimer: This is not investment advice. This InvestingChannel, Inc., newsletter is for information purposes only and is based on opinion. Futures, forex, stock, and options trading are not appropriate for all investors. There is a substantial risk of loss associated with trading these markets. Losses can and will occur. No system or methodology has ever been developed that can ensure returns or eliminate losses. InvestingChannel, Inc., makes no representation or implication that using any of the methodologies or systems in this newsletter will generate returns or insure against losses. Investors should be cautious about any and all investments and are advised to conduct their own due diligence prior to making any investment decisions. [Link](