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Beyond Meat stock sinks on weakened guidance ahead of the summer

The Yahoo Finance Live team analyzes the decline of Beyond Meat stock, what the company may need to spark growth, and consumer trends amid an economic slowdown.

Video transcript

[UPBEAT MUSIC]

- It's time for our triple play. Three stocks that we're watching in the final 40 minutes of trading. We've got Beyond Meat, Alphabet, and Peloton. Starting with my play today, that's Beyond Meat. Disappointing outlook pressuring shares today. We're looking at a loss of just about 17 and 1/2%.

The weak guidance driven by uncertainty heading into the very important summer season for this company. Bernstein analyst Alexia Howard writing in a note to clients that Beyond Meat, quote, is not out of the woods yet, as headwinds do remain here for the company. Their cash burn rate is still high after burning through more than $400 million last year.

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And Josh, this is a company you and I have talked about a number of times. Can't really catch a break. Can't get into investors' good favor. We're looking at a loss just about 60% in the last year.

- Yeah and it's interesting when you think about Beyond Meat and sort of what else can they build from a sales perspective, right? I think that was what you were seeing a lot of Wall Street analysts talk about today, as far as how can they spark new sales growth in a tough environment.

And it seems like a lot of people are pointing to, well, plant-based products are doing better in Europe than they are in the US. How are they going to sort of build that out? And it seems like right now, there's just a lot of questions.

And again, we were talking about this yesterday. To make a comparison across sectors, we were talking about this with Under Armor two days ago, as far as companies that are trying to spark sales growth in the uncertain macro environment.

Whether we're talking about food or we're talking about clothes, I think it's interesting to see those kinds of conversations happening in earnings calls right now. When we're thinking about food from a broad perspective, some of these companies are doing fine, right?

But when you get into a more niche category like plant-based food, Akiko, it seems like it's a little bit tougher of a picture.

- Yeah, the last point you make, Josh, I think is key. I mean, Beyond Meat can do cost savings and restructure all they want, but the reality is plant-based meat sales are down in a big way-- double digits over the last year.

And there's a number of questions on that front. Is it about inflation? Potentially. We could have consumers thinking, well, look. This is a luxury item. Maybe I don't need it. But there's also concern here that some see it as just a fad. They're not willing to invest that money in that kind of meat. There's not necessarily an appetite for it. So that, I think, is the big question for Beyond Meat moving forward.