Should investors be concerned about Beyond Meat losing market share?

Over the past few years.Beyond Meat （Nasdaq Resonancestock (market)(Code: BYND)From industry newcomer to beaten-down stock, its shares are down a staggering 97% from the highs it hit shortly after its 2019 IPO.

The company's sales have been declining quarter over quarter and losses have been heavy, but investors have been encouraged by its fourth quarter results and shares have risen by 60%. However, these gains have been short-lived, and Beyond Meat is down 25% year-to-date, with a low price-to-sales ratio of 1.2. However, even if investors were initially excited about the company's recent progress, there are reasons to be concerned about Beyond Meat's future. Meat's future.

Beyond Meat May Be Losing Market Share

According to Statista, the meat substitute industry has been growing and will continue to do so for years to come.

But the fourth quarter of 2023 marked the seventh consecutive quarter of revenue declines for Beyond Meat. The company's full-year sales contracted by $18% to $343.3M, while overall industry sales grew by $13%.

The most popular updates from investors during the quarter included price increases and new product introductions. Management developed a plan to improve profitability, including cutting $70 million from the operating budget. These actions should help the situation.

Buying Beyond Meat stock now is a bet on management's ability to execute its turnaround plan, but success is far from guaranteed. The company's fourth-quarter net loss widened to $155.1 million from $66.9 million year-over-year, and it even posted a negative gross margin of 113.81 TP3T. Excluding non-cash charges, Beyond Meat's gross margins were still down compared to the same period last year.

Goon expects revenues of $315 million to $345 million this year, which means that 2024 will likely be another year where Beyond Meat is left behind in the industry.

Should you invest $1,000 in Beyond Meat right now?

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Jennifer Saibil does not own any of these shares. the Motley Fool holds a recommendation for Beyond Meat. the Motley Fool has a disclosure policy.

Should Investors Be Worried About Beyond Meat's Declining Market Share? This post was originally published by The Motley Fool.