Beyond Meat (BYND) shares plunged by nearly 14% today on chatter of a potential balance-sheet restructuring on the cards for the troubled plant-based meat products provider.
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Beyond’s Multitude of Woes
According to the Wall Street Journal, Beyond Meat has started restructuring talks with its bondholders, who collectively hold nearly $1.1 billion worth of BYND’s convertible notes.
This development comes amid drying up liquidity and high cash burn rates for the company. Beyond’s sales have slumped from nearly $464.7 million in 2021 to $343.4 million last year. Additionally, it has never reported a profitable bottom line. This combination, in turn, affects BYND’s cash levels, with the company’s total cash position weakening from nearly $261 million in April last year to roughly $157.9 million at the end of March 2024.
Furthermore, the company’s performance in the recent March 2023 quarter indicated weak demand and disappointing sales volumes. As a result, BYND’s share price has plummeted by nearly 94% over the past three years. The current decline in share price exacerbates the challenges for the company’s shareholders.
Is BYND Stock a Buy, Sell, or Hold?
Wall Street also remains less-than-enthusiastic about Beyond Meat’s prospects with a Moderate Sell consensus rating. Moreover, the average BYND price target of $5.58 implies a further potential downside in the stock.
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