Beyond Meat's Business Came Up Against a Major Problem in 2023. Management Will Try a Different Strategy in 2024.
When I first bought shares of plant-based meat company Beyond Meat (NASDAQ: BYND) in 2020, two words were on my mind: price parity.
I believed that Beyond Meat would have an explosive growth opportunity if it could reduce the prices of its products until they cost the same as (or even less than) animal-based protein. In that scenario, its products could go mainstream as ordinary consumers switched to plant-based meat to save money. This would drive sales volume growth, allowing Beyond Meat to gain scale and give it a competitive advantage on the cost of manufacturing.
That was my investment thesis for Beyond Meat, but unfortunately, I've been dead wrong. And what happened in 2023 is proof that I need to go back to the drawing board.
Source Fool.com