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Beyond Meat has actually been struggling to hold above 60 USD. I have a quick look of its 3Q2021 results and am not too pleased with the outcome, i.e. decreasing gross margin, lower US sales (retail aspect) and weak US total sales growth (including US foodservice). International sales are growing but logistics cost and higher warehouse costs and inventory writedown make me wonder if this higher international sales growth was obtained from aggressive costing approaches taken.
All in all, there is no need for me to chase this stock even when it has come down by almost 70% from its all time peak. Why? Even at this pricing, Beyond Meat is not cheap and growth doesnt come easy and cheap for Beyond Meat. Yes Macdonald and KFC and other brands are working with it but how fast can the sales come in is a question though it has led to initial share price rally after the relevant announcements.
At this time when valuation matters alot more, one needs to be particularly to chase such stock. For me, this definitely does not attract me at this price point given the risk reward situation for my profile.
I will probably see if Beyond Meat will come down to below 30 USD or after its 4Q2021 results before I reassess the situation.
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As always, the above should not be construed as any investment or trading advice.
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