Shares of Beyond Meat (NASDAQ: BYND) were sizzling in November as the stock heated up after a long slump. Investors were encouraged by news of layoffs and further cost cuts in its third-quarter earnings report, and the stock also benefited from the broader market gains, as interest rates appears to have peaked and inflation is slowing. As the chart shows, Beyond Meat stock soared on Nov. 2, gaining 18.4% after it gave a disappointing preliminary earnings report for its third quarter, but said that it would slash costs again.
Beyond Meat's industry has been contracting for more than a year now, yet management still doesn't have a good grasp on where demand trends are headed. "We are disappointed by our overall results," CEO Ethan Brown said in an early November press release. Its gross profit margin did improve, rising to a 9% loss from an 18% loss.
Although it's pretty clear what it needs to do next, the clock is ticking on this perennial loss-making company.