The Best Fix to Beyond Meat's Problems Is the 1 Thing Management Can't Do
In 2022, Beyond Meat (NASDAQ: BYND) went through one of the hardest challenges possible: It had a gross loss of almost $24 million. For those unfamiliar with the lingo, this means it cost more to make its plant-based products than what it sold them for. And this profitability metric doesn't even include other operating expenses like outbound shipping to stores, advertising, or the cost to develop new products.
The most logical solution to Beyond Meat's gross profit problem is to raise its prices. After all, grocery stores and restaurants are generally raising prices and passing on higher costs to consumers now because of inflation. But in this case, this is the one thing that Beyond Meat can't do.
Since going public, Beyond Meat lowered the prices for its products, leading some to claim that increased competition is creating a pricing war. While competition is indeed heating up, few realize that lowering prices was the company's true north from the get-go.
Source Fool.com
