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Teens reportedly less inclined to eat plant-based meat in 2023, according to survey

Yahoo Finance Live discusses a drop in Beyond Meat stock after a survey reported that teenagers are less inclined to eat plant-based meat in 2023.

Video transcript

- Beyond Meat, though, doing not so well. That is my play today. Despite environmental issues being the number one issue for teens in this survey, plant-based meat does not seem like the solution. Just 14% of teens say they consume plant-based meat. And of that 14%, 25% say they actually plan to consume less over the next 12 months. That's an increase compared to the previous survey.

Now, on top of that, Impossible is a preferred brand among those respondents, with a 39 preference over Beyond Meat's 34%. Now, shares of Beyond, they're trading relatively flat today but far below their 52-week high of $51.98 a share. Still, the stock seems to have climbed somewhat over this past year, with shares up more than 30% year-to-date. But guys, it seems like this fad, this desire to eat more plant-based meat, that was a trend that many said before was here to stay. It seems like it's fizzling out though.

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- I think it's really surprising to see how it's died out. It appeared to be one of those things that was only here to stay and continue to grow. Now, I've never had one, so I have to ask, like--

- They're good.

- --is there a difference among them though? Are they all pretty much the same?

SEANA SMITH: I was going to say, I actually agree with the teens on this one. I prefer Impossible over Beyond, but I think both are very, very good.

- Yeah, I enjoy it. But to me, I would rather go organic grass-fed--

SEANA SMITH: Yeah.

- --because there are-- there were recent reports and headlines that you have a lot of sodium. There's a lot of soy in some of these products. So I think that was something that sort of prevented people from really going all in on these plant-based alternatives.

- Reading a note this morning, Beyond Meat is beyond help for two key reasons. The demand is number one. But number two-- and this is not insignificant-- negative gross margins, three straight quarters. It's costing more to produce it than they are selling it for. Needless to say, that is not a sustainable business model.

SEANA SMITH: Yeah, it's clearly not. And if you take a look at the stock price, over the last year, it's off just about 70%. And this was one of the high fliers, one of Wall Street's darlings here, going back a couple of years ago, when the company first went public.

One silver lining, though, in this report, of the 86% who don't consume plant-based meat, about a third said that they are willing to try it. So maybe they'll get some more believers, some more fans in the future. But again, when you take a look at how few of teens are eating plant-based foods, definitely an alarming statistic here for a number of these types of companies.

- No doubt.