Why the Original Beyond Meat Weekly Options Trade was Executed?
Beyond Meat Inc (NASDAQ:
BYND), which has
struggled to keep consumers’ attention, is in the midst of a turnaround plan
and is aiming for cash-flow positive operations by the second half of 2023. The
company is making progress on that goal, Chief Executive Officer Ethan Brown
said in comments to analysts on Wednesday and in the company’s earnings
short-term investments fell to $258.6 million, down from about $310 million at
the end of last year. That measure has slipped for eight consecutive quarters.
levels of inflation eroding purchasing power, Beyond Meat has reduced prices,
but that has eaten into profitability. The company’s latest results show that
while retail sales are still falling, there are positive signs in international
food service, where revenue doubled.
posted revenue of $92.2 million in the first quarter, above the average analyst
estimate of $90.7 million compiled by Bloomberg. It also posted a loss of $45.8
million, excluding items such as taxes and interest. That was slightly better
than analysts’ estimates of a $48 million loss.
the quarter produced mixed results,” said Arun Sundaram, an analyst at CFRA.
“Although operating losses are narrowing and the cash-burn rate is slowing, the
company continues to struggle with weak demand in the US, particularly in the
retail sales channel due to inflationary pressures on consumer budgets and
was $58.8 million, below market expectations, while international revenue of
$33.4 million outpaced estimates.
of meat substitutes has been under pressure for over a year now. By volume,
sales of refrigerated meat alternatives slid 19% in the 52 weeks ending April
23, according to market-data tracker Circana. Frozen meat alternatives fell
6.3% by the same measure.
slumping, Beyond Meat has slashed spending and trimmed operational costs,
including rounds of layoffs last year. Job cuts have continued in recent days,
according to people familiar with the matter who asked not to be named because
they aren’t authorized to speak for the company. Beyond Meat has also reduced
parental leave benefits.
have gained 1.4% this year through Wednesday’s close.
The BYND Weekly Options Trade Explained.....
** OPTION TRADE 5: Buy BYND
JUN 02 2023 12.000 PUTS - price at last close was $1.47 - adjust accordingly.
Obviously the results will vary from trader to trader
depending on entry cost and exit price that was undertaken.
Entered the BYND Weekly Options (PUT) Trade on Thursday, May 11,
2023 for $1.28.
Sold the BYND weekly options contracts on Wednesday, May 16,
2023 for $2.29, a potential profit of 79%.
Don’t miss out on further trades – become a member today!
Why Beyond Meat Shares Continues To Fall…..
There's a long list of companies that thrived during the first two years of
the pandemic only to fall upon extremely hard times as the public health crisis
began to wane. Plant-based meat producer Beyond Meat has
tumbled more than 90% from its peak, and does look like a good investment
despite a beaten-down share price.
The plant-based meat craze looks to be over. Beyond Meat is struggling with
lower volumes and lower pricing. The company's revenue tumbled 15.7% year over
year in the first quarter, driven by a 7.3% decrease in volume and a 9% decline
in revenue per pound.
Excluding Beyond Meat's jerky product, the company sold its products in
33,000 retail distribution points in the U.S. during the first quarter. The
dire news is that, on average, each retail outlet sold less than 3 pounds of
Beyond Meat's products each day. It's hard to imagine retail outlets sticking
with the product given that level of sales volume.
A comeback for Beyond Meat is going to
require a 180-degree shift in consumer behavior. It's also going to require the
company's products to somehow stand out in a sea of similar alternatives. Given
Beyond Meat's struggles with pricing, it clearly has no pricing power at all.
The Beyond Meat brand doesn't seem to matter in the grocery store.
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