Should you buy Beyond Meat stock? (March 2024)

Published first at https://www.3minutebreakdowns.com Beyond Meat stock analysis. Ticker: $BYND Beyond Meat reported earnings last week and the stock rallied by about 25% taking the market cap to 633 million dollars. With over 1 billion of debt the enterprise value is just under 1.6 billion. Although Beyond Meat went up last week it’s not obvious why. Revenue in 2023 fell 18% to 343 million dollars but the company posted a gross loss of $83 million on those sales. So before the company has spent a dime on research and development, sales and marketing, and other costs, it’s already in the red. The company has tried cutting back but the numbers are simply not working. Even using adjusted EBITDA, the most favorable metric possible, Beyond Meat is nowhere close to profits. The company probably needs to get to $150 million in Adjusted EBITDA to have a chance of refinancing its convertible debt which comes due in March 2027. At that point, if not before, it seems likely the company will have to file for bankruptcy. Bond markets are aware of this pressure. The convertible debt currently trades at just 22 cents on the dollar which suggests the odds of bankruptcy are likely above 80%. To top it off, the company just filed to delay its annual report which is usually considered a red flag. #investing #stocks #3mb