Beyond Meat (BYND) is a new frontier that seeks to offer plant-based meat substitutes comprising of products that emulate beef, chicken, and pork sausages. The company operates in the food industry (WSJ Markets, 2021). The analysis of the two fiscal years 2019 and 2020 shows that the company is highly lagging and has tendencies of poor performance. This is in contrast to the normally thriving food industry. However, since 2019 following the emergence of the global pandemic of COVID-19 spreading across the world, the food industry has been hard hit prompting a decrease in the performance rates. The existence of such consequences shows severe impacts on BYND fiscal performance beyond the normal rates of the industry.
In 2019 the current operations further decreased from $-0.012 to $-0.028 billion in 2020. Similarly, the operating margin decreased from -4.18 percent to -7.75 percent. From a profit margin of 0.00 percent to a -12.97 percent shows a profound decrease in the sales of the company (Macrotrends, 2021). As well, the rate on total assets (ROA) decreased from -3.36 percent in 2019 to -4.28 percent in 2020. The return on common equity (ROE) similarly decreased from -7.70 percent in 2019 to -14.05 percent in 2020. That is, almost a double value in the decrease. The return on invested capital (ROIC) decreased from 58.73 percent in 2019 to 44.66 percent in 2020 (Macrotrends, 2021). Market capitalizations shows an alike trend decreasing from 384,090 in 2019 to 367,097 in 2020. The outstanding shares increased from $0.042 to $0.062 billion in 2019 and 2020 respectively (Yahoo Finance, 2021). However, the price per earnings from the shares had a positive impact on the company. That is, showed an increase from $67 in 2019 to $125 in 2020.
The poor performance of BYND in the food industry can be attributed to low intake of plant-based meat substitutes. The introduction of the new products requires additional marketing mechanisms and market sensitization to create more awareness. To create the penetration of the market, sufficient campaigns needs to be conduct to market the plant-based meat substitutes. This should be emphasized on the basis of enhanced health benefits and experiencing the taste of meat without having to kill animals.
Macrotrends. (2021). Beyond Meat operating margin 2017-2020 | BYND. Retrieved from https://www.macrotrends.net/stocks/charts/BYND/beyond-meat/operating-margin
Macrotrends. (2021). Beyond Meat price to sales ratio 2017-2020 | BYND. Retrieved from https://www.macrotrends.net/stocks/charts/BYND/beyond-meat/price-sales
WSJ Markets. (2021). Beyond Meat Inc. Retrieved from https://www.wsj.com/market-data/quotes/BYND/financials
Yahoo Finance. (2021). Beyond Meat, Inc. (BYND): Statistics. Retrieved from https://finance.yahoo.com/quote/BYND/key-statistics?p=BYND