The plant-based meat company Beyond Meat (NASDAQ:BYND) is struggling to remain afloat due to dwindling sales. A Wall Street Journal report highlighted that the company is revamping its retail strategy in the face of challenges. The WSJ report stated that BYND is focusing on five key retailers to reaccelerate growth in its retail business.
Beyond Meat is cutting costs and streamlining its operations. It is targeting Walmart (NYSE:WMT), Costco (NASDAQ:COST), Kroger (NYSE:KR), Amazon (NASDAQ:AMZN)-owned Whole Foods Market, and Publix Super Markets to turn around its retail business.
It’s worth highlighting that Beyond Meat has struggled to lift its sales due to the deceleration in demand for plant-based meat. Moreover, some of its customers reduced inventory, which weighed on sales.
Meanwhile, price reductions and increased trade discounts to support sales dragged net revenue per pound lower and took a toll on margins. Beyond Meat has consistently missed Wall Street’s expectations on the bottom line in the past several quarters. Moreover, it reported a higher-than-expected loss in each quarter. Refer to the graph below.
Besides for the strategic measures to reinvigorate sales, BYND announced the appointment of Akerho “AK” Oghoghomeh to lead its global marketing efforts.
What’s the Prediction for BYND Stock?
Given the ongoing challenges related to sales and profitability, Wall Street has a bearish stance on BYND stock. It has received four Hold and five Sell recommendations for a Moderate Sell consensus rating. Further, analysts’ price target of $9.67 indicates 52.18% downside potential.
BYND also has negative indicators from hedge funds and insiders, who sold its stock in the last three months. With negative signals from analysts, hedge funds, and insiders, BYND stock carries an Underperform Smart Score of one.
