Plant-based meat company Beyond Meat has had a tough go of it lately.
Sales dropped late last year and revenue fell along with restaurant demand earlier this year. As a result, the company slashed prices — and sold 12% more product in Q1 — but revenue still fell 10%. Now, as the company prepares to share its second quarter results today, analysts predict the company to continue to falter.
Part of the problem is poor product tests at restaurants and fads that faded to mediocre reviews. I mean, we gave the Beyond KFC Nuggets a shot.
Analyst John Baumgartner, in a recent Reuters report, said part of the problem is product adoption. Cultural tastes won't change overnight. Now that the excitement has passed, Beyond needs more product innovation and better tasting products. Like those nuggets.
Beyond has had product tests at McDonald's, KFC, Taco Bell and Panda Express that didn't evolve into a broader launch. And Dunkin, Hardee's and A&W have already discontinued lines. The company's jerky line has also faltered.
Inflation and supply chain problems are also posing threats, but hopefully the company can weather the storm and rebound before the plant-based meat company becomes just another flash in the pan.