shares hit record lows on Monday, falling for a fifth straight day and dragging down other plant-based stocks as inflation has consumers ditching the higher-priced products.
(Ticker: BYND) has seen better days. In fact, the stock has fallen 74% this year and 93% from its all-time high of $234.90 in July 2019, according to Dow Jones Market Data.
On Monday, Beyond Meat stock fell 5.6% to $17.26. It was published for $25 in May 2019. Other plant-based companies like
fell 2% and 0.6% on Monday, and fell 63% and 18% this year.
So what’s happening in the world of plant-based meats? One word: inflation.
Beyond Meat reported second quarter results in early August. Not only did the company post a wider loss and revenue than analysts expected, but it also gave a low outlook for the full year due to inflationary pressures on its consumers.
“The second quarter of 2022 saw a sequential contraction in US household consumption of plant-based meat for the first time in more than four years,” Beyond Meat CEO Ethan Brown said in the company’s last earnings conference call. “With consumers clearly looking for value, we believe the sector’s high inflation and price premium relative to animal protein is largely, if not entirely, being determined.”
And inflation doesn’t look like it’s going away anytime soon. Consumer prices climbed at an annualized pace of 8.3% in August, according to the Labor Department. Leading the charge for high prices were the shelter, food and medical care categories, which saw some of the fastest price gains during the month. Specifically, the cost of food has increased by 11.4% over the past year, which is the biggest 12-month jump since May 1979.
Not only are food prices high in general, but Beyond Meat products are more expensive overall than regular animal products. CEO Brown said last month that the average retail price of ground beef was $4.90 per pound, while Beyond Meat’s ground beef was going for about $8.35 per pound.
“That’s a very difficult proposition when consumers are facing very high levels of inflation, and their purchasing power in groceries is declining,” Brown said.
Write to Angela Palumbo at firstname.lastname@example.org